Bankruptcy Atlanta» | Adkins Firm, P.C. | Atlanta, GA

Loan Modification Tips

Webtech — Mon, 25 Apr 2011 13:39:26 +0000

Loan Modification Tips

One way to prevent foreclosure is to obtain a loan modification from your lender. Be ready for challenge. Lenders are horrible at processing modifications and they do not really care about their customers. If they did, modifications would be a top priority. However, lenders generally consider loan modifications a bother unworthy of their time. The internet is full of loan modification horror stories which you should read.

Here are some tips for dealing with your lender on a loan modification request.

Ask yourself if you really want the house first. Does it make sense to keep it if the payment is high? Chances are, a modification will not lower your payment much. Also, lenders will not reduce the principal balance on your loan despite the realities of the housing market. Common sense and lenders don’t often meet.
Get organized. You will need to a monthly budget, proof of income, pay-stubs and tax returns. You will also have to write a hardship letter.
Contact your lender’s “loss mitigation or “home retention” department. Request a modification package. Fill it out and return it to the lender with the documents they request.
Keep copies of everything you send to the lender. They will lose the documents you send them. You will have to resend the documents. They will lose the documents again. You will have to resend the documents again. Remember, they don’t really care. You will probably talk to a different person each time you call.
This is the most important tip: Be persistent! Since your lender does not care, you will need to call them frequently for status updates. I suggest calling no less than once a week. You have to stay on them relentlessly, or your modification will be lost in the paper sea.
Don’t pay some company to do your modification for you. You will be scammed out of hundreds or thousands of dollars. If you want help, contact one of the following: Department of Housing and Urban Development; NID Housing Counseling Agency; NACA or CredAbility.
Don’t spend your mortgage payments. If your lender tells you not to send in payments, be sure to save the payments. You will need them if the lender denies the modification. Also, you may need some or all of the past payments if a modification is approved.
If your lender does not treat you fairly, you can file a complaint with the federal government. The agency to file your complaint with is the Office of the Comptroller of the Currency.
Filing Chapter 13 to keep the house should be a last resort. If you are considering Chapter 13, you must ask yourself if it makes sense to keep the house. It may be best to let the house go back to the lender or try a short-sale. If you file for a Chapter 13, you can still try to do a loan modification after your case is filed.

Douglas County Ranks 4th Nationwide in Personal Bankruptcies

MM — Mon, 21 Feb 2011 21:13:17 +0000

Douglas County Ranks 4th Nationwide in Personal Bankruptcies

The following article first appeared on times-georgian.com, and it’s extremely relevant to all of you Douglas County residents. The articles states that 3,359 residents filed for bankruptcy in a single month. If you’ve been dealing with financial hardship yourself, apparently you’re in similar company, but you certainly don’t want to be a part of this trend. Make sure you take the appropriate steps to avoid debt, before your only option is filing for bankruptcy!

“”Douglas County is fourth in the nation in the rate of personal bankruptcies per household, according to statistics compiled by the National Bankruptcy Research Center.

It is one of four Georgia counties that made the top 10 list. Newton County was second, Henry County was third and Rockdale, sixth.

Ronald J. Mann, a professor at the Columbia University Law School, reported that 3,359 county residents filed either a Chapter 7 or Chapter 13 bankruptcy in August.

In a Chapter 7 filing, a person relinquishes his assets in exchange for cancellation of debt. However, a Chapter 13 filing, allows the person to keep certain assets — a home, for example — and undergo a financial reorganization which is supervised by a federal bankruptcy court.

That the county ranked so high nationally was not news to a few attorneys who handle bankruptcy cases here.

Karmel Davis’ law office in Douglasville has experienced a 30 percent increase in filings since last year, she said, with Chapter 7 bankruptcies posting “a huge increase.”

“They’re filing Chapter 7 with the intent to walk away,” Davis said.

She cited home foreclosures as a reason and said decreased home values make it easier for homeowners to not fight to keep their homes.

“People understand now that they are just paying rent anyway,” Davis said. “The value of the home is less than the debt.”

Carol Colliersmith, co-owner of Colliersmith & Associates, is past president of the Metro Atlanta Consumer Bankruptcy Attorneys Group.

She said the state has traditionally been a leader in Chapter 13 filings, but her firm is filing more Chapter 7 bankruptcies than ever.

“Most of our cases are Chapter 7. People are under water with no jobs and are not trying to save that house from foreclosure,” she said.

Ira Gingold, a partner in the law firm of Gingold & Gingold, said he and his daughter have five offices in metro Atlanta.

Douglasville has been the hardest hit, he said.

He listed several reasons for the increase in bankruptcy filings. The real estate market and subsequent rate of foreclosures are

contributing factors, as are others.

“With everybody and their brother building houses, I think Douglasville has been especially hit hard,” he said.

Gingold, who has practiced law for 39 years, said the increase in Chapter 7 and Chapter 13 filings can also be attributed to the economy. He said the country is in a depression instead of a recession.

“We handle a lot,” he said. “Besides the real estate depression, you have the usual outlaws — high credit card interest, divorce, high medical costs and the biggest one, which is tied into the Depression is the loss of jobs.”

Gingold said the effects of the economic downturn in Douglas County seem to be long term and have affected an unexpected group of citizens: people over 50.

It is the opposite of findings he noted years ago when he was called to be an expert on a Clark Howard Show that dealt with bankruptcy.

“Back then it was young people who had accumulated credit card debt in college. Now it has a lot to do with older people who are on a fixed income, are unemployed or under-employed,” Gingold said.

He said the county’s 9.5 percent unemployment rate hurts older people, in particular, because they are considered to be too qualified for many jobs. Those who are unemployed or under-employed can’t afford the same standard of living they once enjoyed either, he said.

With mortgages behind, collection agencies calling and no job, filing bankruptcy is oftentimes the next step, even as people don’t want to file.

“It’s shattering, mentally and physically,” Gingold said. “The tougher they look, the hard they take it. I’ve had tough-looking guys come into my office and cry.””

If you’re thinking about filing for bankruptcy, don’t hesitate to contact the Adkins Firm, the superior bankruptcy attorneys in Atlanta!

6 Mistakes To Avoid Before and During Bankruptcy

MM — Sat, 12 Feb 2011 20:39:08 +0000

6 Mistakes To Avoid Before and During Bankruptcy

Dealing with serious, on-going financial trouble is one of the most stressful things anyone must endure. The prospect of filing for bankruptcy is so daunting that many people try to find ways out of it, only to end up making the same irresponsible financial decisions that initially brought them to their current state. Even after their bankruptcy case has been filed, people often continue to make bad financial choices. Here are a few to steer clear of:

1. Repaying a family member or friend

Since you feel an obvious moral responsibility to repay a family member or friend, you might be prone to paying them before you pay your creditors. This isn’t a wise choice, because a bankruptcy trustee can reclaim any amount repaid to a family member within one year of filing for bankruptcy. It’s important to note that bankruptcy trustees usually don’t go after any amount smaller than $2,000.

2. Running up your credit card

One of the smartest things you can do after filing for bankruptcy is stopping the use of credit cards. When you purchase luxury goods and services ($500.00 +) within 90 days of filing, they are considered nondischargeable, and might be found to be due and owing. Similarly, if you take out cash advances totaling more than $750.00 within 70 days of filing, these will also be considered nondischargable, and might be found to be due and owing, as well. As you can see, using credit cards when you file for bankruptcy is risky business. Although it might be tempting to “buy now and worry later,” it’s really not worth it in the long-run.

3. Transferring property out of your name

A bankruptcy trustee can undo a transfer of property that you previously owned. This can happen if the transfer was made within four years of the filing for bankruptcy, with the intent to hinder, delay or defraud a creditor – or merely if a fair price was not received.

4. Taking out a second mortgage

You probably shouldn’t take out a loan against your home with the intention of lowering your equity. Filing for bankruptcy can often save your home. If you take out a second mortgage to pay credit card debt, you may be putting your home at risk.

5. Liquidating your retirement account

You can eliminate your debt and usually keep whatever you have in a retirement account, free and clear. That is to say that retirements accounts are usually protected. Still, many people take money out of these accounts in a last-ditch effort to pay off their credit cards.

6. Failing to appear in court

When you initially file for bankrupcty, it doesn’t necessarily mean that you’ll avoid a lawsuit. A collection case can continue until your bankruptcy case is completely filed.

all fees must be paid
all vital information must be given to your bankruptcy attorney
you’ve read, signed, and returned all necessary bankruptcy forms to your bankruptcy attorney
you’ve completed the debt counseling program

If you’re thinking about filing for bankruptcy in Atlanta, don’t hesitate to contact the Adkins Firm. The Adkins firm are top-notch Atlanta bankruptcy attorneys, take can get you out of debt and in control of your financial future.

Getting Rid of Student Loan Debt in Bankruptcy

MM — Fri, 04 Feb 2011 20:28:29 +0000

Student loans can be a very difficult debt to discharge when filing for bankruptcy. To do away with this type of debt, you must show that continuing to pay it will not allow you to have even a minimal standard of living. In law speak: “imposing an undue hardship on you.”

The Brunner Test

There are different ways to evaluate whether you have a so-called “undue hardship” with regard to your student loans. The Brunner Test is one such method, and in order to meet these qualifications, you and your bankruptcy attorney must show that:

you (and you dependents) would not be able to maintain a bare necessities standard of living if forced to repay your student loans
there are additional circumstances showing that your current financial situation is likely to persist for a significant portion of the repayment period of the student loans
you have made efforts of good faith to repay the loan.

Adversary Proceeding

Whether your student loans are discharged based on hardship is not automatically determined in the bankruptcy process. First, you must file a petition called an “adversary proceeding” to receive a determination.

If you already filed for bankruptcy, but did not request a determination of “undue hardship,” you may reopen your bankruptcy case at any time in order to file this proceeding. It’s important to note that you should be able to do this without payment of an additional filing fee.

If you’re having difficulty keeping up with your student loan payments, and you’re thinking about filing for bankruptcy in Atlanta, don’t hesitate to contact the Adkins Firm. Marty Adkins is among the top Atlanta bankrupcy attorneys. He’ll help get you out of debt and ready for a new financial future.

What is an Adversary Proceeding, Anyway?

MM — Fri, 04 Feb 2011 20:26:02 +0000

In order to force a hearing in front of a judge in a bankruptcy case, either the creditor, debtor, or bankruptcy attorney must file what is called an adversary proceeding.

Anatomy of an Adversary Proceeding

An adversary proceeding is a written document that must consist of a these various parts:

Basic facts of the case: The parties involved, their addresses, etc, need to be listed.

Jurisdiction: A brief statement as to why your case is being filed in that particular court.

Allegations: What is being accused of the defendant?

Relief: What would you like the court to do about these allegations? If you’re a debtor, perhaps you would like student loan repayment relief, or some other type of debt relief.

The Three Major Parties

You (the debtor): The debtor may file an adversary proceeding if he or she feels that the creditor has violated the automatic stay or the discharge injunction given by another court.

Creditor: Sometimes the creditor will file to argue that part or all of the debt owed falls under one of the exceptions to discharge, such as fraud. The creditor might even file because they think that the bankruptcy filing was done in bad faith, but this rarely happens.

Bankruptcy Attorney: The bankruptcy attorney may file because paperwork was not filled out properly or on time, to force the bankruptcy from Chapter 7 to Chapter 13, or even to dismiss the bankruptcy case.

No matter what party has filed the adversary proceeding, it’s only the judge who can decide the outcome of the hearing.

If you’re a debtor, experienced Atlanta bankruptcy attorney, Marty Adkins will help ensure that the judge decides in your favor, when you have your hearing. Don’t hesitate to contact the Adkins Firm Today!

7 Ways to Improve Your Credit Score After Bankruptcy

MM — Thu, 13 Jan 2011 17:14:38 +0000

7 Ways to Improve Your Credit Score After Bankruptcy

Filing for bankruptcy is often a bittersweet experience. On the one hand, your debts are eliminated. You’re given a second chance to achieve financial stability and even success, but on the other hand, it’s usually a long, hard road to getting there. Reading this article is as good a start as any to your new future. Here are some tips to improving your credit score and getting you back on your financial feet!

1. Save

It’s probably the most simple advice one can give, but it’s one of the most effective methods for improving your credit score after bankruptcy. You won’t have any immediate borrowing power right after bankruptcy, so this is essential in case emergencies come up. Get into the practice of paying by cash and check only. Saving will allow you to build up a down payment for a major purchase such as a car or house, if you need these things. Down payments are imperative for obtaining a loan after bankruptcy, to improve your credit rating.

2. Make payments on time, every time

Rent, mortgage, utilities…they all need to be paid on time, or they will probably be reported. Making regular, on-time payments will keep your score in the neutral zone, but if you’re significantly late on them, you can do serious harm to it.

3. Keep collection agencies away

When your past due balances go to a collection agency, they will report this activity to credit agencies, even for the most minuscule amounts. If this happens to you, don’t hesitate to give the collection agency a call, tell them when you plan on making the payment, and they might wave their notification to the credit agency, just this once.

4. Do not bounce checks

Bounced checks are not reported to credit agencies, but they are tracked internally by banks, and you are likely to be left with some hefty overdraft fees if you get into this habit. If you’ve bounced your share of checks, it probably wouldn’t be smart to apply for a loan through a bank, because it’s likely that they won’t give it to you. If you don’t have the money for a particular payment, simply write the check when you have some cash in the bank, as opposed to writing checks for money you don’t have.

5. Borrow from small, local lenders

Nationwide lenders often run your social security number through their system and automatically decline your loan request based on a general formula. Local lenders might be more willing to help you out if they are familiar with your employer, or know you to be a reliable customer. Try out a credit union. They tend to be community-based, and have a great deal of experience with people who have bad credit histories.

6. Do an annual credit report check

The major credit report agencies are required by law to offer you a free credit report, once every year. If you find an error on your report, make a phone call immediately. If it’s on your report for too long, you may lose the right to have it fixed, and it can end up staying on there for up to 7 years.

7. Don’t get involved with credit repair scams

No agency can “repair” your credit score or erase your real credit history. Nobody can positively impact your credit score, but you. Remember that!

If you’re having financial trouble and are considering filing for bankruptcy, don’t hesitate to contact the Adkins Firm, you’re premier Atlanta bankruptcy attorney.

3 Commonly Believed Myths About Filing For Bankruptcy

MM — Sat, 08 Jan 2011 17:04:31 +0000

3 Commonly Believed Myths About Filing For Bankruptcy

Many people have this skewed image in their minds about what it would be like if they ever filed for bankruptcy: they would have to be absolutely penniless in the first place, they would no longer own any of their valuable possessions, they wouldn’t be able to take out any more loans, etc. All these things are simply not true. Let’s set the record straight on what it’s like to be bankrupt, and what you can and cannot do financially after you’ve filed for bankruptcy in Atlanta, and elsewhere.

1. You have to be completely broke to file bankruptcy

It’s often understood that people who file bankruptcy no longer have but a penny in their pockets (literally), but this is false. Actually, you can even file if you still have a car, house, and a spouse with a stable income. People end up filing for bankruptcy when they can longer keep up with their financial responsibilities to their lenders. That’s all it really entails.

2. Bankruptcy will take away all your possessions

Many individuals fear declaring bankruptcy – thinking that their lenders will rush in and take all of their precious goods, however, there are serious limits on what institutions can take from a bankrupt person. When Atlanta bankruptcy cases are filed correctly, they can stop foreclosure of a home or the repossession of your car. Bankruptcy should allow you to regain financial responsibility, and it would be counter-intuitive if lenders took all of your possessions.

3. You cannot apply for new loans

A bankruptcy can affect the terms and the cost of interest that a credit company or a lender will offer to you. Bankruptcies stay on your records for 10 years (at most). However, if credit companies chose to stick their noses up at anybody with a bankruptcy in their records, they themselves would go bankrupt. As a precaution, lenders will offer you different terms and rates in order to ensure their financial safety.

If you’re thinking about filing for bankruptcy, don’t hesitate to contact the Adkins Firm, you’re top notch bankruptcy attorneys in Atlanta!

250 Foreclosed Atlanta Homes Go to Auction

MM — Sun, 02 Jan 2011 17:04:29 +0000

The following article was taken from prnewswire.com, and it’s another reminder of how the foreclosure of your home can negatively effect the lives of you and your family. It’s difficult to imagine someone purchasing your home, that you didn’t willing leave, isn’t it?

Over 250 Foreclosed Atlanta Homes Head to the Auction Block, Tempting Buyers With Deals

Valued from $10,000 to $284,000, the Homes Will Be Auctioned by Hudson & Marshall January 22nd and 23rd

ATLANTA, Jan. 12, 2011 /PRNewswire-USNewswire/ — As home sales edge upward, buyers continue to gravitate toward foreclosed properties because they remain some of the best buys in today’s real estate market. On average bank-owned homes sell at a discounted price compared to similar homes in a neighborhood. Hudson & Marshall will auction over 250 Atlanta area foreclosed homes January 22nd-23rd at the Atlanta Marriott Century Center at 1:00 p.m.

Prospective buyers will be required to make a $2,500 cash or certified check deposit for each property, for which they are the winning bidder. There is a wide array of homes from which investors and owner-occupant buyers can choose. Homes come with an insurable title, and all sales will close within 30-45 days. Buyers may secure financing with the lender of their choice prior to closing; however, closing is not contingent upon financing.

“The downturn in the housing market has made buyers more educated and savvy about the homebuying process. With the high levels of foreclosures flooding the market, consumers have realized that foreclosures don’t necessarily mean run-down property anymore. They can be purchased at a reduced price and in move-in ready condition,” remarked Dave Webb, principal, Hudson & Marshall.

All properties auctioned by Hudson & Marshall are sold “as-is” and buyers should inspect properties before placing any bids. Homes can be viewed during the open house scheduled Saturday, January 15th and Sunday, January 16th from 1:00 p.m.-3:00 p.m. or by contacting listing agents to schedule appointments. Complete property details and additional information may be found at www.hudsonmarshall.com or by calling 866-539-4172.

Realtytrac® reported during the third quarter of 2010, foreclosures accounted for 25% of all U.S. home sales, and average sales price of properties sold while in some stage of foreclosure was more than 32% below the average sales price of homes not in the foreclosure process. In Georgia, foreclosure sales accounted for 29% of all residential home sales in the third quarter of 2010.

Prior to auction, buyers can purchase property online by visiting the website and clicking on the Bid-Now icon. Sellers typically respond to offers within 24 hours. This is a reserve auction, which means sellers have the right to accept, reject or counter any bid; however, in past auctions conducted by Hudson & Marshall, the majority of offers have been accepted.

Having sold over 80,000 homes for sellers in the past ten years, Hudson & Marshall, Inc. is the most experienced, trusted leader in the REO auction industry. The company’s accelerated sales process enables it to swiftly and efficiently sell large volumes of property in a way that minimizes expenses for sellers and maximizes return. Over the past five years alone, Hudson & Marshall’s total sales have topped $3.5 billion, and the company anticipates selling another 15,000 homes in 2011.”

Don’t let this happen to you! If you’re facing foreclosure in Atlanta, don’t hesitate to contact the Adkins Firm. Marty Adkins will promptly help you file Chapter 13 to stop the foreclosure of your home, and give you a new start to your financial future.

The Way Repossession Can Impact Your Credit

MM — Fri, 17 Dec 2010 16:59:17 +0000

As you probably already know, purchasing a car can be an overwhelming responsibility. Like most people, chances are, you’re not going to purchase your new wheels with cash. So, you’ll have to take out a car loan. The most important thing to remember about a car loan is that all the payments must be made on time, until it is all paid off. For many car owners, this task is easier said than done.

If you happen to miss your car payments for two to three months, your creditor has the right to tow your precious car away, and put it up for auction. This process of taking your car from you, and then selling it to recoup the money that you owe, is called repossession.

Important note: If you’ve already gone a few months without paying your car loan, you might want to consider, filing for bankruptcy!

Repossession: Step by Step

1. Initial Warning – Your creditor will contact you via phone or mail/email, if you’ve defaulted on your payments for two to three months.

2. Goodbye Car – If you still haven’t paid them, they will ask a repossession company to find your car, and have it towed away.

3. Covering You – Once your vehicle has been towed, the hirer will be given a chance to pay for your defaulted payment, in addition to the repossession charge.

4. Auction – If they’re still unable to recover the payment from you, your car will be sold off at a the first available price, without much bargaining. This money will be used to pay off your automobile loan.

5. You’re Not Off the Hook – Usually it will never cover the full loaned amount, which means you still have to pay for the balance.

6. The Unfortunate Road Ahead – Now, the situation at this point will leave you with no car to drive, and even worse, a debt to pay. The repossession will certainly impact your credit to a very large extend.

How Repossession Impacts Your Credit

Once your car is repossessed, most banks will decline a secured loan application for a relatively large amount. This not only hurts your credit, it also lands you with limited choices for applying for a loan. When it’s time to buy a home, this also requires taking out loans, and with the repossession on your history, you will not be able to get a typical secured home loan with reasonable interest rates.

What Now?

Online Finance Firms – You can try working with one of these types of sites, as they tend to be very suitable for people with bad credit records. Still, the interest rates tend to be high, and the late repayment penalties tend to be high as well. Please be aware of these drawbacks.

Smaller Banks – Working with smaller banks is another option to consider. They will probably lend you a smaller amount than a finance company, it’s better than no loan at all.

Don’t let car repossession and bad credit control your life. Don’t hesitate to contact The Adkins Firm. Our Atlanta bankruptcy attorneys will help you get out of debt and return to the life you deserve. After all, we’re the premier bankruptcy lawyers in Atlanta!

5 Car Maintenance Tips To Keep You Out of Debt

MM — Mon, 13 Dec 2010 19:07:16 +0000

5 Car Maintenance Tips To Keep You Out of Debt

In this day and age, owning a car is an absolute necessity for most people. Because it’s a “must-have” item, many end up spending thousands of dollars on basic maintenance costs, just so they can get themselves to work and buy groceries. With repair after repair of that old car though, its easy to take on a great deal of debt. Purchasing a new car and entering into a whole other payment plan that you can’t afford, is not the best financial strategy – especially if you want to avoid bankruptcy. Instead, here are a few car maintenance spending tips to keep your car going and going.

Safety First

When you’re pondering whether or not to take your car into the shop, ask yourself ”does my car’s problem threaten my safety and the safety of my passengers?” When all is said and done, your car must do two things, get you from point A to point B, and keep you safe. Obviously if your car simply doesn’t run, you’re going to have it repaired, but it’s vital to ask a trusted mechanic about any of your car’s problems that might be hazardous. Have those taken car of immediately! If your mechanic is not reputable ,they might suggest an extraneous tune-up that isn’t necessary, and that will be more money out of your pocket.

Make Sure Your Money is Going to the Right Mechanic

As mentioned earlier, it’s important to find a trustworthy mechanic you can build a long-term relationship with. Certainly, some repairs are the same cost with a mechanic as they are at the dealership, but it’s better to find a mechanic who truly cares about you and your car. This is the person you are trusting with your family’s safety, so it’s in your best interest to develop a close repore with him. After a few repairs you’ll start to realize whether or not he’s giving you the most for your money.

Chances Are, You Don’t Want to Buy a New Car

If money is tight for you, as it is for many people these days, buying a new car just isn’t realistic in most cases. When you look at the repair expenses compared to having a brand new car payment each month, paying for the repair is usually the cheaper choice. The key is to save properly for these repairs and make it a regular aspect of your budget.

Stay On The Route To Getting Out Of Car Debt

With proper savings, you can avoid using a credit card and pay with cash for repairs. Keep in mind a new or used car payment would cost more than the $1000 repair in 2-3 months. Just develop good relationships, think about your safety, save, and you can definitely conquer car repair debt!

If you are having trouble keeping up with payments, and find yourself severely in the hole, don’t hesitate to contact The Adkins Firm. We’re the Georgia bankruptcy firm you can can count on!