Tag: bankruptcy

Evictions and Bankruptcy

in Bankruptcy

As of the publishing of this blog entry, the State of Georgia has resumed judicial evictions.  They have been going on for just under two weeks and already, courts are seeing their dockets fill up with hundreds of requests in each and every county, particularly in the Northern District.  The sad reality is, those evictions have a real impact on real people.  You may have googled your protections and found what you think are protections that the state offers.  What you may not have realized is that google often pulls in information from other states, despite your inquiry. The truth is, in Georgia, you have very few legal remedies should your landlord file a dispossessory action against you. 

Landlords can file a dispossessory against you the minute that you are late and within a matter of weeks, law enforcement can show up at your door and remove you and your family from the property.  In Georgia, evictions are like clockwork. In certain circumstances, Bankruptcy can help slow or stop the eviction process and it can certainly help you if you wish to break your lease and move on or if your landlord is seeking a judgement against you for unpaid rent.  Bankruptcy is a powerful financial tool you can use to help yourself get out of a bad situation.  If your landlord is trying to evict you, you should seek the opinion of a qualified bankruptcy attorney as to whether or not bankruptcy can help you in your situation.  

If you have already been evicted, bankruptcy can stop the landlord from continuing to collect back rent and keeps them from getting a judgment against you for any unpaid rent from the remainder of the lease.  Additionally, if you know you can’t afford your rent, bankruptcy can allow you to break your lease without the repercussions of being sued by your landlord for ending the lease early.  This is particularly true in cases of commercial leases when you must shut down your small business.  

If you find yourself in the unfortunate situation where you are unable to afford to pay for your rent any longer or your landlord has sought a judgement against you, contact our office today.  We offer a free consultation, either in person or online, to help you discuss your options in bankruptcy. 

The Reality of Unemployment

in Bankruptcy

COVID- 19 is having a dramatic effect on the average American household. We are seeing unemployment numbers reaching record highs not seen since the great depression. With a  wave of corporate bankruptcies having already begun, taking out legendary retailers like Neiman Marcus and J. Crew as well as the second oldest airline in the world, Avianca, with more pain in the corporate world likely to come and with that will come even more unemployment. 

Consumers, likewise, have faced an enormous amount of uncertainty.  A recent poll taken since the coronavirus outbreak paints a grim picture of household finances: Almost two-thirds of respondents (64%) anticipate that lost wages due to the pandemic will yield at least a $500 shortfall when trying to pay monthly bills. Nearly half of those households (27% of all respondents) predict a shortfall of $1000 or more. Those are real and substantial amounts of money.  We have already discussed how the average American is unlikely to be able to fully fund a $1,000 emergency.  Add that in with the fact that many Americans are likely to be $1,000 short of being able to make basic expenses and you have a recipe for catastrophe.  

While many have been able to float their expenses by relying on their $1,200 stimulus check and their boosted unemployment checks, others still find themselves short and others still haven’t received either their stimulus or their expanded unemployment benefits.  This leaves consumers with very few options.  As we outlined in an earlier blog post, you need to prioritize your payments.  You have to keep a roof over your head, food in your belly and you have to be able to obtain reliable transportation when it is safe to return to work or when you are able to find gainful employment in that order.  One of the best ways you can handle the shelter and transportation issue is through bankruptcy.  When times get tough, the bankruptcy code provides immense relief for people who have found themselves to be in tough financial situation.  This is done through the automatic stay which provides relief and stops actions by creditors.

Bankruptcy is a saving grace for people who have experienced financial hardship.  If you’ve exhausted your options or are feeling overwhelmed by your financial situation, don’t keep waiting for the next financial catastrophe to come down the pipe, get ahead of it and contact our office today for a free, no obligation consultation via phone, videoconference or in person (with social distancing of course) with one of our award winning attorneys.  In times of trouble, it’s good to know someone.  Let us work for you. 

3 uses for your Stimulus Check

in Bankruptcy, Credit and Credit Cards

As of the writing of this blog entry, more than 22 million Americans have filed for unemployment and millions more are staring into the abyss.  COVID-19 has decimated what was one of the strongest economies in American history. Businesses are closing and some of the most famous names in retail are likely to be seeking bankruptcy protection in the very near future. There is one silver lining in all this and that’s the help we’re all getting from the government in the form of Stimulus checks to help offset the damage COVID-19 has done to people’s ability to function financially. A lot of people don’t often receive a big lump sum payment like this and many are asking, what should I do with my newfound windfall.  We have a list below to help you decide. 

Meet your basic needs

Everyone has ongoing expenses that they must pay for, your stimulus can help.

Food: You’ve got to eat and so does your family.  You’ve got to be able to put food on the table day in and day out.  If you don’t have any other means of putting food on the table, this check can seriously help with one of life’s greatest necessities. 

Housing: You’ve got to keep a roof over your head.  Many people are finding offers of forbearance on loans and rent, but be sure to read the fine print.  Many banks and landlords are offering forbearance but the devil is in the details. Many of those banks and landlords will expect the entire amount due at the end of the forbearance period.  If you can, pay your mortgage or your rent.  

Transportation: If you’re lucky enough to have a job now or one to go back to once everything goes back to normal, you need to keep a set of wheels. 

Utilities: You should pay your bills if you can.  While many utility companies are’t disconnecting during the crisis, don’t think that’s going to be a free ride. The tab is still running and they will eventually expect payment, possibly with interest and fees. The bottom line is, look on their websites for coronavirus accommodations and how to contact them for assistance. Don’t ignore bills. Stay in touch with each company if financial hardship puts you behind and you can’t pay.

Save it

We have written before about the number of Americans who don’t have even enough money  in their bank account to cover a $1,000 emergency. With each person getting $1,200 in stimulus money and families getting more, if you are one of the fortunate people who still have a job, use this money to help build up a fund to cover the unexpected burdens you may not see coming yet.  

Invest in your future

Eventually, everything will get back to normal and when it does, you’re going to have a lot of financial decisions to make.  If you aren’t in the position to save your money and you’ve stopped paying some of your bills like credit cards and personal loans, know that your creditors will eventually come looking for you and the money you owe them.  If you already had a good amount of debt to begin with maybe you’re realizing that now may be a good time to start fresh with a clean slate. At Harmon and Gorove, that’s what we’ve done for nearly 40 years. If you’re facing financial uncertainty because of unsustainable debt, contact the attorneys at Harmon and Gorove for a free consultation to discuss how bankruptcy can put you on the path to financial security.

Millennials & Credit Cards

in Bankruptcy, Credit and Credit Cards

The types of people carrying credit card debt is changing in Georgia and around the country. Millennials, a group of people born between 1981 and 1996,  were once known for their aversion to overdue bills, especially as many of them became adults and entered the workforce during the Great Recession. Because of this experience, a significant number of millenials steered clear of credit cards. However, as they have experienced salary growth and with credit card issuers developing cards that are particularly appealing to younger people, millennials have taken on a larger and larger share of credit card debt.

Along with that overall increase in credit card debt, millennials now experience higher levels of delinquent debt. Over 8% of credit card balances carried by these younger Americans were more than three months past due. This marks a high in the level of delinquent debt carried by younger people not seen in nearly a decade. Experts say that millenials and other young people have been inspired to open credit cards as purchasing power and income has grown. Many of these new cardholders feel confident that they will be able to pay back whatever bills they run up. The problem is, life often gets in the way. Personal circumstances like an unexpected job loss or an illness can interfere with a person’s ability to pay. When credit cards are involved, interest rates are exceptionally high, occasionally topping 35%. Even people with exceptional credit often pay interest rates of 18%.

Credit card companies often tweak their marketing to appeal more strongly to young people. These companies use tons of data and studies show that traditional incentives like 0% interest and cash rewards are less enticing for millennials than sign-up bonuses or travel credits. The worst part about the rise of credit card debt is that it accompanies a big rise in interest rates recently by the Federal Reserve.  This makes it even more expensive to carry a balance on a revolving line of credit like your traditional credit card. 

When people find themselves facing insurmountable debt burdens, they may not see the light at the end of the tunnel. However, a qualified bankruptcy attorney could provide sage advice and educate people on the available options that can help you achieve your financial goals. If you find yourself drowning in debt contact the attorneys at Harmon and Gorove.  We have decades of experience helping people achieve the dream of being debt free. 

COVID-19 and your Finances

in Bankruptcy, Credit and Credit Cards

COVID-19 is a disease the likes of which no one alive has witnessed or has any real recollection of.  While we’re Attorneys here and not Doctors, we know that COVID-19 has a real impact, not just on people, but their finances as well.  Many Americans don’t have paid sick leave and if they do, perhaps they don’t have enough.  Many people work in industries that often shut down when they don’t have enough visitors like hospitality, the restaurant business, lodging and seasonal jobs that depend on foot traffic.  Let’s be honest, I don’t know about you, but I do know that I’ve been out and about and all I can say is, foot traffic is at a minimum to say the least.  Additionally, with schools and businesses closed, many of the industries that support these large employers like parking attendants,  dry cleaners, sanitation workers, janitors and custodians as well as hourly secretarial staff are all seeing hours cut back or eliminated period.  A recent CNN article suggested that more than half of all jobs in America are at risk.  The author states, “Nearly 80 million jobs in the US economy are at high or moderate risk today, according to analysis in the last week from Moody’s Analytics. That’s more than half of the 153 million jobs in the economy overall.” We could potentially take years to get back to where we are today if the worst case scenario materializes and for many, that is simply too long.  Thousands of small businesses will be affected by the economic downturn and millions of people will experience furloughs, layoffs and closures.  That said, we are here to help.  Harmon and Gorove has successfully helped people navigate economic downturns and have assisted them in making their financial situation work for them, even in the worst of times.  We understand that no one ever expects to be here, but don’t worry, we are here to help in a compassionate and judgement free way.  If you’re suffering from job loss, or simply just having your hours cut, contact us today for a free, no obligation consultation to learn how we can help you navigate the most recent economic downturn. 

5 Common causes of Debt

in Bankruptcy, Credit and Credit Cards

People come into our office all the time with debt.  It’s kinda what we do.  If you’re here and you’re not in debt or seeking a divorce, chances are, we won’t be able to do much for you.  Over time, this has given us perspective on what actually causes debt.  Below are the top five causes of debt. 

1. An unexpected emergency

Many people find themselves in debt because they aren’t prepared when something bad happens. Your entire HVAC system may go belly up and need significant repairs. You may crash your car or get really sick only to find your insurance doesn’t cover everything. To keep these scenarios from wiping out your savings and leading to debt, you once again need to boost your emergency fund.

2. College costs

Going to college is expensive. So many people find themselves saddled with debt from college and often in the early part of their lives. This makes getting ahead and acquiring those assets that help build wealth even harder than before.  The average class of 2016 graduate left school with $37,172 in student loan debt. Those student loans can force a new graduate into even more borrowing just to cover basic necessities, which only furthers the downward spiral into debt.

3. Loss of income

Losing your primary means of generating income can really hurt you. You might have been laid off or maybe you did something stupid and got yourself fired. Maybe you’re self employed and had a sudden decline in revenue for your business. Maybe you had to stop working to care for loved one.  Perhaps your health took a turn for the worse and you were forced to retire early or significantly reduce your hours.  When horrible things like this happen, it’s easy to find yourself overwhelmed and debt can quickly follow.

4. Being poorly insured

Insurance is one of the most vexing things about life. It frequently feels like a waste of money … until you need it. Many people find themselves in very serious debt  when a bad event hits and they aren’t properly insured. Imagine  your house burning down without homeowners insurance or wrecking  your car with a liability only policy. All of these things can lead to serious financial consequences. 

5. Keeping up with the Joneses

People are always looking next door and seeing what the neighbors are doing,  yours truly included. Maybe Todd across the street is putting in a pool or your college roommate is sharing photos of their latest European vacation. Maybe your obnoxious sister-in-law just closed on a house twice the size of yours. Life really feels unfair when you feel like you have to go without and like many people, you may feel pressure to “keep up” with those you perceive to have it better than you. 

DON’T DO IT THOUGH, THIS IS A RECIPE FOR DISASTER.

Chasing a lifestyle your income won’t support will have you turning to credit cards and other consumer debt to fund frivolous buys. The spiral into debt can be quick, overwhelming and unforgiving. The average millionaire drives a Honda, Ford or Toyota, and lives in a normal house in a middle class neighborhood. No one is saying you shouldn’t treat yourself to nice things or go on vacation every once in a while; but if you can’t actually afford those things you’re hurting yourself in the long run.

If you’ve found yourself drowning in debt, whether it’s one of these causes of debt or not, reach out to the experienced and compassionate lawyers at Harmon and Gorove for a free consultation today.  We have decades of experience helping people get their finances back on track and and creating lasting prosperity for our clients.