Recently, a foreclosure auction was planned for a property in a nearby state. However, a Chapter 7 bankruptcy filing prevented the auction from taking place.
]]> People in Pennsylvania who are facing foreclosure may want to consider filing for bankruptcy. By doing so, they can stop the foreclosure process and prevent a scheduled sheriff's sale from taking place.Filing for Chapter 7 bankruptcy allows people to eliminate their debt in a timely manner. Although assets are sold through the liquidation process, people may still be able to hold on to valuable possessions such as their home.
Another option for people to consider is Chapter 13 bankruptcy. By filing for Chapter 13, people are allowed the opportunity to design a repayment plan to pay off their debts rather than liquidating their assets.
To determine which option is best, residents of Pennsylvania would be wise to rely on the expertise of an experienced bankruptcy attorney. An attorney can assess an individual's situation and help determine the best course of action.
People who are unable to pay their mortgage may feel completely overwhelmed. As the months pass by, their situation may become worse and worse. Although they may feel helpless, there are solutions for them to turn to. Bankruptcy provides many people with the relief they need and gives individuals a chance to start over.
Source: Seacoastonline.com, "Bankruptcy filing halts foreclosure auction in York Beach," Susan Morse, May 16, 2012
]]>In most bankruptcy cases, a large amount of the filer's debt is dischargeable. Medical bills, credit cards and other debts are just some of those that may be resolved. However, many people do not realize that student loans cannot be discharged under the bankruptcy rules, which were enacted as part of the 2005 Congressional reforms. Even worse, these non-dischargeable debts include both private and federal student loans. These loans are only dischargeable in the most extreme and rare circumstances.
]]> Before 2005, people who had private student loans could discharge the debt. After changes were enacted as a part of reform efforts, those debts must be repaid even if bankruptcy is filed. This can be a huge strain on some individuals who have large amounts of student debt to repay.Did you know that 37 million Americans have student loan debt? The loans total $870 billion. The median for borrowers is $12,800. Additionally, approximately 5.4 million borrowers have a student loan payment that is past due.
Ultimately, bankruptcy can help you get out of serious financial problems. However, before you initiate the process, it is important to know how the method can help you. For example, if all of your debt is student debt, you may need to look at other debt-reducing options. Fortunately, a review of applicable bankruptcy rules can assist in planning for a financial future. Even if you do have a significant amount of student debt, bankruptcy can offer a fresh start for other financial burdens. While student debt may not be covered, other obligations are included, and additionally, a filer may seek court approval of a plan to repay outstanding obligations over a stipulated period of time.
Source: Businessweek, "Even after bankruptcy, trapped by student debt," Justin Pope, April 25, 2012
]]>It all started two years ago when a debt collector left a message insinuating that her house would be repossessed if she didn't pay her debt. Luckily, she saved the message. The message, as it turned out, was from a company called a debt buyer. Debt buyers purchase old debts from creditors who have given up trying to collect their money. Debt buyers often use illegal threatening tactics.
The woman sent a cease and desist letter via certified mail to the company after the first phone call. According to records, exactly 23 minutes after the company signed for the letter, another call was made to the woman. She answered the phone because the caller ID indicated that the call was coming from the local sheriff's department. In actuality, it was the debt buyer calling to harass her about the cease and desist letter.
]]> • It is against the law for debt collectors to use scare tactics like implying that your property will be seized or make empty threats about lawsuits.• Another illegal tactic is a practice called "spoofing" in which the debt buyers manipulate caller ID information.
The man on the line repeatedly called her vulgar names and made disgusting violent sexual threats. Again, the answering machine was recording. Feeling threatened and violated, the woman sued. Neither the debt buyer company executives, nor their attorneys, showed up for court appearances and the judge awarded the record judgment, calling the company's actions malicious.
Source: abcnews.go.com, "W.Va. Woman Fights to Collect $10 Million from Debt Collectors," Elizabeth Leamy, April 25, 2012
]]>A report by First Focus found that about 2.3 million children have lived in homes that were lost to foreclosure. Another 6 million children live in homes or rental properties that are at risk of foreclosure.
]]> When children are in a home that is lost to foreclosure they can suffer developmentally, and it often causes setbacks in their work at school. In fact, reading and math scores drop significantly after every forced move that a child endures."Children are the often invisible victims of the foreclosure crisis," the report author said.
Some states have been more affected by the foreclosure crisis than others. In Nevada, about 20 percent of children have lived in homes lost to foreclosure or at risk of foreclosure. In Florida, about 15 percent of children have been affected by foreclosure. In places like Alaska and North Dakota, only 2 percent of children have been affected by foreclosure.
Sadly, many people are facing foreclosure at no fault of their own. Unemployment or a serious illness can make it impossible to keep up with mortgage payments.
Fortunately, there are options for people to turn to that effectively halt the foreclosure process. People may be able to seek a short sale. In other cases, people may be able to file for bankruptcy. To determine which option is best for you, it is often wise to consult with an experienced bankruptcy attorney.
Source: Chicago Sun-Times, "Study: Foreclosures take toll on kids," Julie Schmit, April 19, 2012
]]>A college education has long been viewed as a good thing. A person with a college degree may have more job opportunities and better earning potential. However, the cost to attend college has skyrocketed in the last decade or so. Because of this, some predict fewer people will be able to own a home.
]]> Since 2001, the cost of attending college has risen three times as fast as wages in the United States. Tuition, on an inflation-adjusted basis, increased 57 percent while incomes for people between the ages of 25 and 34 fell 7 percent.Because of the rising costs, student-loan debt recently exceeded $1 trillion. Some say this burden could cripple the housing market by preventing people from finding affordable mortgage rates.
"The explosion in student debt is a development that calls for a lower homeownership rate," one strategist indicated.
Whether an individual has student loans or any other form of debt, mounting bills can be frustrating to deal with. Rather than facing it alone, however, a person in Pennsylvania would be wise to consult with an experienced bankruptcy attorney. An attorney can lay out the various options available to an individual and help determine what the best course of action is based on their specific situation. Although student-loan debt is typically not eliminated through bankruptcy, an attorney may be able to suggest other alternatives to get a person back on track with their finances.
Source: Bloomberg, "'Explosion in Student Debt' Drags Down Housing: Chart of the Day," David Wilson, April 16, 2012
]]>According to reports, Sapp owes more than $6.7 million to creditors. A portion of that money is also for late child support and alimony payments. He reportedly has close to $6.5 million in assets. He currently makes about $115,000 as an analyst.
]]> Professional athletes seem to live a life that most people only dream of. However, the millions of dollars they earn while they are playing can quickly dwindle after retirement. In fact, according to Sports Illustrated, within two years of retirement, almost 80 percent of NFL players file for bankruptcy. In addition, about 60 percent of NBA players file for bankruptcy within five years of retirement.Many people in Pennsylvania can likely relate to Sapp's predicament. In many cases, credit card debt, medical bills and car loans can become overwhelming. When someone cannot keep up with their mounting debt, it may be best to file for Chapter 7 bankruptcy.
Through Chapter 7, an individual can eliminate their debt almost immediately. Property is dissolved through the liquidation process. However, people may be able to hold on to other valuable assets, such as their home and car.
Pennsylvania residents struggling with debt month after month would be wise to consult with an experienced bankruptcy attorney. An attorney can help them through the bankruptcy process, giving them a much needed fresh start.
Source: The Washington Post, "Warren Sapp: The latest multimillionaire athlete to file for bankruptcy," Matt Brooks, April 9, 2012
]]>African-Americans and Hispanics seem to have been hit particularly hard during the recession. Although they have lower average balances in their 401(k) plans, numbers show that they were forced to borrow from their 401(k) at a much higher rate than other Americans during the recent recession.
]]> In 2007, slightly more than 6 percent of African-Americans took hardship withdrawals from their 401(k). By 2010, close to 9 percent were forced to take hardship withdrawals. In 2010, only 1.7 percent of white workers took hardship withdrawals.In addition, 50 percent of African-Americans and 40 percent of Hispanics had a 401(k) loan balance at the end of 2010. In comparison, only 26 percent of white workers and 22 percent of Asian workers had a loan balance.
Although some people may think borrowing from their 401(k) is a good idea, it can be particularly risky during tough economic times. If a person is laid off, they may be forced to pay the entire loan balance within 60 days.
People who are struggling to pay their bills may feel desperate. Rather than turning to a 401(k), however, people may wish to consult with a bankruptcy attorney to see what options may be available to them.
Those struggling with their mortgage payments may be able to seek a mortgage modification. Others may be able to file for bankruptcy. In either case, it is often best to rely on an experienced bankruptcy attorney who can work to protect an individual's valuable assets.
Source: USA Today, "Downturn leads to rise in costly 401(k) loans by minorities," Sandra Block, April 4, 2012
]]>A study of 4 million Americans found that of those with at least one car loan, one credit card and a mortgage, only 10 percent were late on their car loan. Almost 40 percent were late to pay their mortgage, but managed to stay current on their car loan and credit card bill. About 17 percent of those studied were late paying their credit card bill while staying current on their mortgage and car loan.
]]> In the past, a person's home was their most prized possession. In fact, in 2006, only about 4 percent of people paid their mortgage late. So what is the reasoning behind this new phenomenon?Some believe this trend is happening because people need their vehicles to get to and from a job. The foreclosure process can take years and people may be able to negotiate with credit card companies. However, a car may be repossessed just 90 days after people stop making payments.
It is a sad reality for many Americans that they must prioritize their bills and leave some unpaid. For people with high amounts of debt, it may be wise to file for bankruptcy. A bankruptcy attorney can explain the various options available to people and help them get back on track with their finances.
Source: Star Tribune, "Americans put a priority on staying current on the car loan, a study finds," Pallavi Gogoi, March 29, 2012
]]>This is a problem that is all too common for many Americans, even those who have health insurance. In 2010, 1 in 5 Americans had trouble paying their medical bills. In the first six months of 2011, 1 in 3 Americans could not pay their medical bills.
]]> Although those without health insurance were much more likely to have trouble paying off medical debt, about 30 percent of people with private insurance and 40 percent of people with public insurance had difficulty paying their medical bills.Health insurance was first created to prevent people from going broke if they or a family member suffered a serious health problem. However, high medical debt is creating major problems for many Americans.
More than half of all personal bankruptcies are the result of high medical debt. Of those that file for bankruptcy, about two-thirds have insurance.
Millions of Americans have suffered financial setbacks in recent years. People have found it difficult to pay their mortgage, car loans and credit card debt. On top of that, some people may also face large medical bills.
People in Pennsylvania and beyond with high debt may feel overwhelmed and frustrated. They may want to just give up. Fortunately, there are solutions that may eliminate an individual's debt once and for all.
Filing for bankruptcy may prove to be the best course of action. By filing for Chapter 7 bankruptcy, an individual can discharge their debts in just a matter of months. Those interested in filing for bankruptcy would be wise to consult with a bankruptcy attorney.
Source: Houston Chronicle, "Insured but bankrupt: The hidden side of health care costs," Dr. Howard Brody, Mar. 19, 2012
]]>The housing crisis affected one woman in particular. She lost her home to foreclosure in 2008. However, she is an attorney and an expert in the laws surrounding foreclosure. After further investigation, she discovered that she and thousands of others were victims of fraud.
]]> Recently, five of the nation's largest mortgage lenders agreed on a settlement after it was discovered that banks were falsifying mortgage paperwork and signing off on documents that had never been read. For her efforts, the woman will receive $18 million from the $25 billion settlement, likely making her the largest beneficiary.Others will also benefit from the settlement. Some homeowners will be awarded a $2,000 payout. Others may also see a large reduction in their mortgage loans.
Although the $25 billion settlement is a step in the right direction, it may not be enough for some. Many people in Pennsylvania and beyond continue to struggle with their finances. People may even be in jeopardy of losing their home. They may feel frustrated and overwhelmed. Fortunately, there may be other options.
People who are struggling to pay their mortgage may find a short sale to be the best option. Other people may find that bankruptcy is the best choice.
Whatever the case may be, an individual may find it beneficial to meet with a bankruptcy attorney who can explain the various options and help them choose the best one based on their unique circumstance.
Source: The Huffington Post, "Lynn Szymoniak, Foreclosure Victim, Receives $18 million For Investigating Mortgage Crisis," Alexander Eichler, Mar. 15, 2012
]]>Chapter 7 bankruptcy has been particularly beneficial for one company. Maclaren, a company that makes strollers, filed for bankruptcy late last year, and it could not have come at a better time.
]]> The company recalled one million of its strollers in November 2009. They were facing lawsuits from seven different families who claim their children lost portions of their fingers because of a stroller malfunction.Fortunately for Maclaren, the Chapter 7 bankruptcy filing stopped the lawsuits from moving forward. Although the families may receive permission from a bankruptcy court, the cases will likely remain unsettled as the company's assets are liquidated.
Although it is unclear what will happen with this specific case, it serves as a reminder for those in Pennsylvania and beyond that Chapter 7 bankruptcy is an option for those that find themselves unable to pay back their debt. Through Chapter 7, individuals can eliminate medical bills, credit card debt and car loans. However, people may still be able to hold on to valuable possessions, such as their home.
People in Pennsylvania were hit hard by the tough economy. However, there are solutions available to people to give them the fresh start they are looking for. Those with high amounts of debt may find it beneficial to speak with a bankruptcy attorney to determine what options they have available to them.
Source: The Huffington Post, "Maclaren Bankruptcy Puts Amputated Finger Lawsuits In Limbo," Alice Hines, Mar. 6, 2012
]]>Fortunately, residents in Pennsylvania have more protections against debt collectors. Pennsylvania is among four states in which debt collectors cannot garnish wages if an individual falls behind on their bills. However, there are other things debt collectors are allowed to do in order to get the money that is owed to them.
]]> Debt collectors are allowed to mail people notices. They are also allowed to call during regular business hours and can even contact friends and relatives to determine where a person lives. They also have the right to sue consumers.But some debt collectors go too far. They are not allowed to call outside of regular business hours and they cannot use obscene language. They cannot call an individual's workplace and they cannot inform someone's employer about their debt. In Pennsylvania, they are not allowed to threaten to garnish an individual's wages.
The Federal Trade Commission works to identify abusive debt collectors. In fact, the FTC reached a $2.8 million settlement with West Asset Management after they committed a variety of egregious violations against consumers.
It is recommended that residents in Pennsylvania who have begun to receive calls from debt collectors make note of any phone calls that appear abusive and in violation of a consumers rights.
In addition, seeking the advice of an experienced attorney would be wise. An attorney can help an individual create a plan to pay off their debt and effectively stop creditor harassment. For some, bankruptcy may be the best option.
Source: Pittsburgh Post-Gazette, "Pennsylvania is among the safest states to call behind on credit card bills," Gabrielle Banks, Feb. 20, 2012
]]>Some are optimistic this settlement, along with a new set of standards for banks to follow and more regulation, will change the way mortgage lenders have typically done business. However, others are not convinced.
]]> A loan modification is one way to avoid foreclosure, but the process can be complicated. One of the biggest problems for people seeking a loan modification has been the lack of consistent communication. People often have trouble getting through to a representative or are forced to talk to multiple different people throughout the process.One homeowner called her representative at JPMorgan Chase 30 times, but was only able to speak with them once. She began calling executives at the bank and filed complaints with regulators before she was able to be put in touch with a more communicative representative. Despite her troubles early on, she was recently approved for a loan modification.
People have noticed little change in the way banks do business since pledging last spring to the Office of the Comptroller of the Currency to improve service to customers. But officials will soon be releasing a new set of standards for banks to follow, and the secretary of the Department of Housing and Urban Development says it will "force banks to clean up their acts." However, it is too soon to say if these new standards will help the struggling homeowners in Pennsylvania and beyond.
Source: The New York Times, "Some Doubt Settlement Will End Mortgage Ills," Nelson D. Schwartz, Feb. 20, 2012
]]>The 67-year-old says he has less than $50,000 in assets and as much as $1 million in debt. According to documents, Busey owes money to the Internal Revenue Service, attorneys, UCLA Medical Center, Wells Fargo and an unnamed storage company.
]]> This latest bankruptcy filing is evidence that even celebrities can run into difficult situations that lead them into debt. Fortunately, through Chapter 7 bankruptcy an individual may be able to eliminate all of their debt and be given a fresh start.When an individual files for Chapter 7 bankruptcy, their debt can be eliminated in a matter of months. In addition, people may be able to hold on to valuable property, such as cars and homes.
Whether you are a movie star or an average American, the recession has had an impact on nearly everyone. It has left people unemployed and unable to pay their bills. For some, a medical emergency may have left them with mountains of debt. Fortunately, there are places to turn for help.
People living in Pennsylvania who are struggling to pay off their debts may find it beneficial to consult with an experienced bankruptcy attorney. An attorney can help an individual determine what the best course of action might be and get them back on track.
Source: CBS News, "Gary Busey files for bankruptcy," Lauren Moraski, Feb. 8, 2012
]]>The National Association of Consumer Bankruptcy Attorneys is a group that represents bankruptcy lawyers and their clients. After surveying more than 900 attorneys, the group found that more people are filing for bankruptcy due to high student-loan debt.
]]> Student-loan debt has reached a record high. It now sits at almost $1 trillion. In 2010, student-loan debt exceeded credit-card debt for the very first time and it could have a major impact on the economy."Take it from those of us on the frontline of economic distress in America," the National Association of Consumer Bankruptcy Attorneys president said. "This could very well be the next debt bomb for the U.S. economy."
The amount of borrowing that is being done worries some because it is reminiscent of the mortgage crisis. However, unlike credit-card debt and mortgage debt, student-loan debt can often not be eliminated through bankruptcy.
Despite that, bankruptcy may still be a good option for some. Through bankruptcy, an individual may be able to eliminate their debt and begin down a path to financial security.
Anyone living in Pennsylvania who is faced with mounting debt may wish to consider working with an experienced bankruptcy attorney. An attorney can outline the options available to an individual and help them choose the best one based on their specific situation.
Dealing with debt can be frustrating and overwhelming. Fortunately, an individual does not have to face it alone.
Source: Bloomberg, "Student Debt Could Be Next 'Bomb,' U.S. Bankruptcy Lawyers Say," Janet Lorin, Feb. 7, 2012
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