September 2010 Archives

Despite all of the talk about a recovery, which certainly hasn't been felt by jobless Atlantans, North Georgia College & State University professor John Scott doesn't expect the economy to improve anytime soon, as reported by the Gainesville Times.

In fact, his outlook is quite bleak. John Scott, also the director of NGCSU's Center for Economic Education, predicts another recession in the first or second quarter of next year and expects inflation to be the worst since the Civil War:

"I also expect lower long-term growth, and I think our government's reaction to the crisis will cause problems for years."

Most observers expected that a Blockbuster bankruptcy would come eventually. Once-mighty video rental chain Blockbuster has filed for Chapter 11 bankruptcy protection and plans to trim its nearly $1 billion debt load by closing half of its roughly 3,000 stores, according to Reuters.

The closure of some or all of Blockbuster's 30 metro Atlanta stores will only add to an already high retail vacancy rate, not to mention unemployment, the Atlanta Journal-Constitution reported.

Most individuals who have eventually consulted with Atlanta bankruptcy attorneys to zero out their debts were first hounded by collection agencies. But one former collections agent said sometimes they come calling even after the debtor has passed away, as reported by the Minneapolis-St. Paul Star Tribune.

In fact, Todd Murray claims he quit his job at a collections law firm in 2008 specifically because his boss asked him to call the widows and widowers of debtors who died before settling their debts.

Anyone who has had the displeasure of dealing with debt collection firms will relish in the news that debt collector Hudson & Keyse LLC has gone bankrupt, as reported by The News-Herald of northern Ohio. According to the Chapter 7 filing, Hudson owes $63 million and has just $288,000 in assets.

Its biggest creditor is Atlanta-based Vion Holdings LLC, which bought most of the company's debt obligations. And it's likely that several Georgia bankruptcy lawyers have clients who have dealt with Hudson & Keyse well.

Republican gubernatorial hopeful Nathan Deal publicly said "I'm not about to file for bankruptcy" but did say he would repay a $2.3 million business loan that comes due in five months, according to the Atlanta Journal-Constitution:

Meeting with a Georgia bankruptcy lawyer is probably the last thing Nathan Deal wants to do in the run-up to the November 2 election. But the loan, which the GOP hopeful took out as investment in his daughter and son-in-law's failed sporting goods business, will have to be paid back somehow.

The AJC reported that his assets, including a private residence in Gainesville, are not enough to cover the debt.

Discouraged Atlantans struggling to make ends meet might want to hold off calling that Atlanta bankruptcy lawyer for just a little while longer. Georgia's economy showed some real signs of improvement as the state saw its third straight month of increased tax revenues after 17 months of decline, according to BusinessWeek.

Tax revenues for August shot up by 12.7 percent, compared to 4.7 percent in July and 3.8 percent in June.

While a more flush state treasury might not directly benefit the average Georgia resident, it shows that the state is experiencing an upswing in economic activity. That means more jobs, higher wages, increased retail sales and a glimmer of hope in an otherwise stagnant economy.

Forty-two percent of all individuals filing for bankruptcy protection were between the ages of 45 and 64 in 2007, according to an American Bankruptcy Institute study cited by Fox Business.

And members of the demographic group referred to as the Baby Boomers also are filing for bankruptcy at a much faster rate than other age groups, just as bankruptcies among younger people have dropped significantly.

Atlanta bankruptcy lawyers could provide more local perspective, at least anecdotally, but it's a disturbing trend for people who are nearing retirement.

Bankruptcy filings among small businesses in metro Atlanta fell by a substantial 35.6 percent during the second quarter of 2010 as compared to the same period last year, according the Atlanta Journal-Constitution. While it's too soon to say whether small businesses will begin hiring any time soon, it's one silver lining among the economic storm clouds.

Businesses usually file for Chapter 11 protection when petitioning for bankruptcy, as any bankruptcy attorney in Atlanta would tell you. It doesn't always spell the end of the company but often is followed by drastic cuts, including staff reductions.

Not even bankruptcy and charges of practicing medicine without a license can keep self-proclaimed Hindu guru Annamalai Annamalai from setting up shop in a new location, as reported by the Dayton Daily News.  

Annamalai Annamalai, presumably with the representation of a Georgia bankruptcy lawyer, lost his temple on the outskirts of Atlanta after his arrest (the charges were later dropped) and subsequent default on a $2.3 million real estate loan.

The controversial guru, who also calls himself Dr. Commander Selvam and Swamiji Sri Siddhar Selvam, has started or operated Hindu temples in California, Arizona, Georgia and now Ohio.

A report by a California public health agency and Just Cause claims that people going through foreclosure and related financial woes experience an increased occurrence of medical problems, as covered by the San Francisco Chronicle's Web site, SFGate. 

While the Bay Area is a long way away from Atlanta, both regions have suffered high rates of foreclosure and bankruptcy. The report is based on a survey of nearly 400 Oakland residents in neighborhoods that were hit particularly hard by the housing downturn (PDF).

The finding that higher levels of stress were associated with higher foreclosure rates shouldn't come as a surprise. But Atlanta residents seeking out Georgia bankruptcy lawyers may also want to go in for a medical checkup as well.

Debt-collection and debt-relief firms have increasingly come under fire in the last year or so as consumers file complaints of fraud and predatory practices. But the story of a convicted drug offender, who allegedly ran debt-collection firm from federal prison, as reported by Bloomberg, takes the cake for sheer audacity.

Individuals who default on their debts often consider filing for bankruptcy, as any bankruptcy attorney in Atlanta would tell you. But according to New York Attorney General Andrew Cuomo, Lamont D. Cooper and his accomplices often coerced payments from individuals who actually didn't owe anything.

While most observers suspected that video rental Goliath Blockbuster was headed toward Chapter 11 bankruptcy, hometown paper The Dallas Morning News cited unnamed sources who say Blockbuster will file its petition by mid-September. Since the company is $1 billion in debt and has warned investors about a possible bankruptcy for nearly two years, no one should be surprised.

But a Blockbuster bankruptcy doesn't necessarily mean curtains for the once-dominant movie rental company. In fact, Atlanta bankruptcy lawyers would tell you that the process ideally is an opportunity for a fresh start.

Still, the question remains: What kind of a future should Blockbuster expect?