"While the economy improves, bankruptcies will still be a fact of life..."
Atlanta, GA (PRWEB) June 23, 2010
Leading Georgia bankruptcy attorneys Berry & Associates and its blog Georgia Debt Law recently published a post about the spike in bankruptcy nationwide, what this means for Atlanta residents and homeowners, and if any changes are coming.
A recent study by the National Bankruptcy Research Center highlighted how bankruptcy actually increased, as usual, between the months of February and March of both 2009 and 2010. This is a quite common occurrence. What's news is that the spike in 2010 was four times higher; bankruptcies spiked 5% between February and March of 2009, but increased 20% in those same months of 2010. That's a very large increase for an economy which is supposed to be slowly recovering.
Why was the spike higher? You need to understand first who is filing, the middle class consumers in Atlanta and nationwide. Georgia itself has been hit hard economically, worse than most states, and as all Atlanta residents are aware of, foreclosures because of subprime mortgages are still quite common.
The blog post points out that we are not through the woods yet. The main causes of filing are numerous. “Since the mortgage crisis, filing Chapter 13 bankruptcy was much more common. However, other studies have highlighted how medical debt is forcing thousands to file bankruptcy. So it would be safe to say medical, foreclosure, and job loss are the prime culprits.”
Is there any sign of this slowing? Yes, just this year job creation has increased, for the first time in several years. “If job creation continues perhaps home owners will be safer. With medical reform on the horizon, medical debt may be a thing of the past for many. While the economy improves, bankruptcies will still be a fact of life but perhaps less so.”
The blog post closes by pointing out the basic facts of bankruptcy. It's a reality for Georgia and Atlanta residents. The answer may be in consulting with an experienced attorney. “Because Atlanta specifically has been hit hard by bankruptcies, especially because of subprime mortgages, you need to know your options. If you hire an attorney, he or she can walk you through the process. Chapter 13 bankruptcy is a solution for home owners as it can help you keep your home. Chapter 7 can eliminate the main reasons for filing: credit, medical, and mortgage debt.”
For more information and more posts on Georgia and Atlanta bankruptcy, look to the Georgia Debt Law blog.
Berry & Associates and Georgia Debt Law have been helping consumers stop foreclosure, protect assets, and successfully discharge debt for over 15 years. They've helped thousands of clients with their years experience in bankruptcy law. They offer a free initial consultation. Their blog on bankruptcy law, GeorgiaDebtLaw, is ready by many Georgia residents interested in filing for bankruptcy and getting a fresh start.
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