Extra Credit?
September 24, 2007
By Mark Dolliver
A cut in interest rates offers little comfort if you don't qualify for credit. And that's the leaky boat in which many consumers find themselves, according to the latest Experian/Gallup Personal Credit Index survey. Eighteen percent of respondents said someone close to them has been turned down for credit within the past three months. Among those with household income under $40,000, the figure climbs to 23 percent (vs. 14 percent in the $75,000-plus bracket). But household income is less of a dividing line than age, as you can gather from the chart here. The same poll asked people whether they know anyone who has filed for bankruptcy or gone into foreclosure in the past three months. Twelve percent said they do.
Showing posts with label bankruptcy. Show all posts
Showing posts with label bankruptcy. Show all posts
Monday, September 24, 2007
Friday, July 13, 2007
Gambling's Ugly Side - Bankruptcy
Bankruptcy comes about due to many different circumstances. It is common knowledge that gamblers are at a higher risk of bankruptcy than non-gamblers. This story from The Kansan, about personal bankruptcy should be posted at the entrance of every casino:
Bankruptcy can be an ugly side of gambling
The therapist tried to reason with the man on the other end of the line. It was Friday night; he had taken his life savings out of the bank and was on his way to a Kansas casino.
Somewhere in the hundreds of words that spilled from her mouth as she attempted to get him to think about gambling his life away, she got through. He turned his car around and came home.
“I didn’t stop talking to him until he was back in his driveway, but there is nothing to say he wasn’t back at the casino the next day,” said the Wichita therapist, who did not wish to give her name to protect the identity of herself and her client.
“If you drink or do meth or cocaine, at some point you are going to pass out or die,” she said. “The harm stops, but that never happens with gambling. I know people who have gone 23 hours without stopping and been $25,000 down. When they reach the point they have no money, they find creative ways to find money. They are chasing the money — chasing their losses.”
Saturday, April 21, 2007
There is Homeownership After Bankruptcy!
After bankruptcy, it may seem like you will spend years renting before you will ever be able to buy a home again. Not so with a rent-to-own program Here is a sample rent-to-own house ad on a typical classified ad site. Consider a rent-to-own program if you are serious about owning a home again.
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Saturday, April 14, 2007
Do You Think You May Have Been a Victim of Predatory Lending?
If you have been a victim of predatory lending, you should read this and decide if you might want to take action. This was on the ConsumerAffairs.com website:
Bankruptcy Laws Contributing to Foreclosure Epidemic
Consumer Groups Press Congress to Amend Bankruptcy Code
April 13, 2007
Bankruptcy law changes are needed if hundreds of thousands of American families struggling with abusive subprime mortgages are going to escape foreclosure and the loss of up to $164 billion in home-based wealth, according to a joint call for Congressional action issued by the National Association of Consumer Bankruptcy Attorneys (NACBA), the Consumer Federation of America (CFA) and the Center for Responsible Lending (CRL).
The three consumer groups warned that -- while primarily low-income subprime mortgage borrowers face often insurmountable bankruptcy hurdles to hold onto their homes -- high-income individuals in bankruptcy court get preferential treatment when they seek to save second and third homes.
"The only chance many of these (subprime) borrowers have is through declaring bankruptcy," the groups said. "The problem is that as currently enacted, the Bankruptcy Code favors home mortgage lenders over virtually all other secured and unsecured creditors."
The amendment disfavoring protection of the debtor's principal residence was added at a time -- 1978 -- when home mortgages were nearly all fixed-interest rate instruments with low loan-to-value ratios and were rarely themselves the source of a family's financial distress. As a result, bankruptcy law singled out the home mortgage loan as the major debt for which the bankruptcy court is powerless to provide relief, they said. "Since that time, the mortgage market has shifted considerably. Subprime lending practices of the last six years, which have relied on property appreciation, and in many cases appraisal fraud, have left many borrowers with mortgages larger than the value of their homes. If the borrowers cannot restructure these debts, then they cannot get back on their feet financially."
Philadelphia bankruptcy attorney and NACBA President Henry Sommer said help is urgently needed for hundreds of thousands of American families at risk of losing their homes due to abusive home loans.
"For most of these families, bankruptcy is the only viable option to save their home, and this option will be available only if the Bankruptcy Code is revised to eliminate or limit the provisions that exclude home loans from bankruptcy protection," Sommer said. "This current exclusion is contrary to sound policy, and operates to disadvantage low-wealth and middle-income borrowers as compared to debtors with the wealth to own more than one home."
Allen Fishbein, director of housing and credit policy of the Consumer Federation of America, said two million or more homeowners face foreclosure over the next few years, with many of these resulting from negligent and reckless lending practices by mortgage originators.
"A sizable number of borrowers find themselves in this situation because their mortgages are larger than the current value of their homes. Modifying the bankruptcy laws to permit the write down of certain toxic mortgages would provide a critical life-line for these at-risk families to hang on to their homes. We urge the Congress to act," Fishbein said.
Foreclosure Epidemic
"The purpose of bankruptcy is to give troubled families a chance for a fresh start," said Eric Stein, chief operating officer of Self-Help and senior vice president of the Center for Responsible Lending.
"Today we have an epidemic of homeowners who are in serious financial trouble, and whose houses are worth less than the balance due on their loans because of the irresponsible lending practices of subprime lenders," he said. "To make matters worse, bankruptcy laws will actually prevent these families from recovering. Subprime loans have pushed millions of households under water; unless Congress makes some common-sense changes, our current laws will ensure that they drown."
As 2006 drew to a close, 2.2 million households in the subprime market had either lost their homes to foreclosure or held subprime mortgages that likely will fail over the next several years absent intervention, the groups said.
These foreclosures will cost these families their homes, along with up to $164 billion in lost wealth. For increasing numbers of borrowers, foreclosure is the only option available. Lehman Brothers has estimated that 30 percent of subprime loans originated in 2006 will end in foreclosure.
The joint statement recommends a wide range of specific bankruptcy law changes, including the following:
• End the Bankruptcy Code's special treatment of home mortgage loans.
• Remove time-consuming credit counseling requirements.
• Curb excessive fees during bankruptcy.
• End mandatory arbitration in bankruptcy.
• Create a minimum homestead exemption for the elderly.
• Amend chapter 7 of the Bankruptcy Code.
Report Your Experience
If you've had a bad experience with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.
Bankruptcy Laws Contributing to Foreclosure Epidemic
Consumer Groups Press Congress to Amend Bankruptcy Code
April 13, 2007
Bankruptcy law changes are needed if hundreds of thousands of American families struggling with abusive subprime mortgages are going to escape foreclosure and the loss of up to $164 billion in home-based wealth, according to a joint call for Congressional action issued by the National Association of Consumer Bankruptcy Attorneys (NACBA), the Consumer Federation of America (CFA) and the Center for Responsible Lending (CRL).
The three consumer groups warned that -- while primarily low-income subprime mortgage borrowers face often insurmountable bankruptcy hurdles to hold onto their homes -- high-income individuals in bankruptcy court get preferential treatment when they seek to save second and third homes.
"The only chance many of these (subprime) borrowers have is through declaring bankruptcy," the groups said. "The problem is that as currently enacted, the Bankruptcy Code favors home mortgage lenders over virtually all other secured and unsecured creditors."
The amendment disfavoring protection of the debtor's principal residence was added at a time -- 1978 -- when home mortgages were nearly all fixed-interest rate instruments with low loan-to-value ratios and were rarely themselves the source of a family's financial distress. As a result, bankruptcy law singled out the home mortgage loan as the major debt for which the bankruptcy court is powerless to provide relief, they said. "Since that time, the mortgage market has shifted considerably. Subprime lending practices of the last six years, which have relied on property appreciation, and in many cases appraisal fraud, have left many borrowers with mortgages larger than the value of their homes. If the borrowers cannot restructure these debts, then they cannot get back on their feet financially."
Philadelphia bankruptcy attorney and NACBA President Henry Sommer said help is urgently needed for hundreds of thousands of American families at risk of losing their homes due to abusive home loans.
"For most of these families, bankruptcy is the only viable option to save their home, and this option will be available only if the Bankruptcy Code is revised to eliminate or limit the provisions that exclude home loans from bankruptcy protection," Sommer said. "This current exclusion is contrary to sound policy, and operates to disadvantage low-wealth and middle-income borrowers as compared to debtors with the wealth to own more than one home."
Allen Fishbein, director of housing and credit policy of the Consumer Federation of America, said two million or more homeowners face foreclosure over the next few years, with many of these resulting from negligent and reckless lending practices by mortgage originators.
"A sizable number of borrowers find themselves in this situation because their mortgages are larger than the current value of their homes. Modifying the bankruptcy laws to permit the write down of certain toxic mortgages would provide a critical life-line for these at-risk families to hang on to their homes. We urge the Congress to act," Fishbein said.
Foreclosure Epidemic
"The purpose of bankruptcy is to give troubled families a chance for a fresh start," said Eric Stein, chief operating officer of Self-Help and senior vice president of the Center for Responsible Lending.
"Today we have an epidemic of homeowners who are in serious financial trouble, and whose houses are worth less than the balance due on their loans because of the irresponsible lending practices of subprime lenders," he said. "To make matters worse, bankruptcy laws will actually prevent these families from recovering. Subprime loans have pushed millions of households under water; unless Congress makes some common-sense changes, our current laws will ensure that they drown."
As 2006 drew to a close, 2.2 million households in the subprime market had either lost their homes to foreclosure or held subprime mortgages that likely will fail over the next several years absent intervention, the groups said.
These foreclosures will cost these families their homes, along with up to $164 billion in lost wealth. For increasing numbers of borrowers, foreclosure is the only option available. Lehman Brothers has estimated that 30 percent of subprime loans originated in 2006 will end in foreclosure.
The joint statement recommends a wide range of specific bankruptcy law changes, including the following:
• End the Bankruptcy Code's special treatment of home mortgage loans.
• Remove time-consuming credit counseling requirements.
• Curb excessive fees during bankruptcy.
• End mandatory arbitration in bankruptcy.
• Create a minimum homestead exemption for the elderly.
• Amend chapter 7 of the Bankruptcy Code.
Report Your Experience
If you've had a bad experience with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.
Tuesday, April 10, 2007
For 2 Couples, Hiring a Bankruptcy Attorney Became a Nightmare
Here is another reason you might want to consider other alternatives to bankruptcy. Two couples from Pittsburg, PA hired a bankruptcy attorney and compounded their financial problems.
Attorney pleads guilty of embezzling
Wednesday, April 04, 2007
A Pittsburgh bankruptcy attorney pleaded guilty Monday in federal court to embezzling from her clients.
Robin L. Musher, 42, admitted to taking money from two couples she was representing in bankruptcy proceedings.
Ms. Musher was accused of taking $47,420.88 from the sale of a property in Somerset County in December 2003. According to the prosecution, Ms. Musher received payment for the property and deposited the money in her own account to pay business expenses.
In December 2004, she took $104,832 in sale proceeds for another couple in bankruptcy and deposited that in her own account.
Ms. Musher has paid restitution. Sentencing will be June 28.
Sunday, March 25, 2007
Welcome to our Bankruptcy Attorney blog
Please be patient as we begin to add information on our blog which will help you determine if you need a bankruptcy attorney. If you are having financial problems, there may be other alternatives for you to consider before hiring a bankruptcy lawyer. It is our goal to help you make the right decision about bankruptcy.
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