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Consumer Bankruptcy Blog from Legal Helpers

Bankruptcy issues, debt consolidation issues and information on filing for bankruptcy provided and addressed by bankruptcy lawyers.

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Last Entry: August 06, 2009 at 18:22:25

The Latest Bankruptcy Information Statistics

Posted on August 06, 2009
Bankruptcy is not a crutch. When used responsibly, bankruptcy can dig you out of the financial catastrophes you never could have anticipated, such as the U.S. unemployment reaching nearly 10%! This is perhaps the reason the number of U.S. bankruptcies has risen 60% since last year...

U.S. Government Aids Homeowners in Refinancing

Posted on August 05, 2009
As of July 15, 2009, U.S. Housing and Urban Development Secretary, Shaun Donovan, announced an expansion of the federal government?s Home Affordable Refinance Program to include participation by borrowers who are current in their mortgage payments but who are up to 125% ?underwater? on their mortgage...

The Beginnings of Bankruptcy

Posted on August 04, 2009
In the United States, bankruptcy laws were established under civil code in 1800 when Americans were faced with a difficult economy, such as what is currently happening. Modern bankruptcy is based on Article 1, Section 8 of the United States Constitution that gives Congress the exclusive power “to establish uniform laws on the subject [...

Luna Innovations Seek Chapter 11 Bankruptcy Protection

Posted on August 03, 2009
Joining many of the other financially strung companies in the United States, Luna Innovations has filed for bankruptcy protection under the Chapter 11 guidelines. The filing is reported to be the result of a legal dispute the company had with Hansen Medical back in April...

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Who Is Hurt Most by G.M.?s Wide-Scale Bankruptcy?

Posted on July 31, 2009
Jobs Overseas + Bankruptcy/Health Care Catch 22=Unsure Future for Retired Workers Retired (G.M. parent company) Delphi workers have long enjoyed a life-time of health coverage. Even as insurance coverage rates went sky-high, G.M. continued to foot the medical bill for about 100,000 of these white-collar salaried employees?a sum of $1...

Fraser Papers Files for Bankruptcy Protection

Posted on July 30, 2009
Fraser papers is has recently announced it will seek Chapter 15 bankruptcy protection in Canada and the United States. The filing is the result of sinking selling prices and the decreasing demand for pulp and lumber as well as the outstanding debt repayments that could not be made without assistance...

Go Cubs Go, Go Cubs Go?

Posted on July 29, 2009
More than just their fight song, it appears that the Chicago Cubs will soon be gone as a subsidiary of the Chicago Tribune Company and be sold to the Ricketts family for a reported $900 million. The Tribune Company has already gone through Chapter 11 bankruptcy for the newspaper last December (2008), due to weakness [...

The Euro Bankruptcy VS US Bankruptcy- Which Helps YOU Recover?

Posted on July 28, 2009
The Euro just celebrated its 10th birthday this January 2009. A shock for some, who didn?t think the unit of currency would last very long. The Euro saw its share of resistance from financially struggling countries?Denmark has long been a detractor. In the face of the ongoing recession, the Euro faces unprecedented challenge and a Danish [...

Glass-Steagall Act ? Should the Repeal be Repealed?

Posted on July 27, 2009
According to the Congressional Research Service of the Library of Congress: During the Great Depression, Congress examined the mixing of the ?commercial? and ?investment? banking industries that occurred in the 1920s. Hearings revealed conflicts of interest and fraud in some banking institutions? securities activities...

CIT May Be The Christmas Grinch

Posted on July 24, 2009
CIT Group, Inc., the New York-based giant finance company, disclosed to federal regulators that it is experiencing major monetary difficulties. Just as U.S. retailers are starting to recover from a dismal 2008-2009 holiday season, CIT hammered still another nail into the retail coffin...

GM Finds Solace in Bankruptcy- So Can You!

Posted on July 24, 2009
Well, GM has exited its bankruptcy protection. YAY!! Oh, wait. It?s not really that great news since the federal government owns 61% of GM stock. BOO! Oh, wait. It?s really not that bad. GM is promising to change their stodgy, clunky, brand-heavy company into a sleek, stream-lined business, ready to go ?to infinity and beyond? [...

Mets Star Lenny Dykstra Seeks Bankruptcy Protection

Posted on July 22, 2009
No one seems to be safe from our troubled economy these days. Even seemingly wealthy celebrities are falling deep into debt and are unable to deal with their financial burden without help. A prime example of this is former center fielder for the New York Mets Lenny Dykstra filing for Chapter 11 bankruptcy this month...

Oscient Filing for Bankruptcy: What Happens to Laid Off Employees?

Posted on July 22, 2009
It?s been announced recently that Oscient Pharmaceuticals Corp. has filed for Chapter 11 Bankruptcy. Oscient, (located in Waltham, Massachusetts) was responsible for producing the ?Factive? product, which is an antibiotic used for fighting bronchitis and pneumonia...

Gentlemen, Please Do Not Start Your Engines

Posted on July 20, 2009
It?s come to this?even the drag racers have been hit hard by the flagging effects of the sinking economy that?s sweeping the country. The General Motors Corp. bankruptcy is apparently leaving more than just its employees in its lackluster dust. The Detroit auto-maker recently filed papers with the U...

Oklahoma Residents Suffer Financial Difficulty- Bankruptcy May Be the Solution

Posted on July 17, 2009
Oklahoma is not a state renowned for extravagant living. So why does bankruptcy information show Chapter 7 filings astonishingly higher in Oklahoma, (.6% of their state population), than in the rest of the nation? Could it be that Oklahomans are uniquely irresponsible about credit card debt, or are their rival neighbors the Texas Longhorns [...

Diagnosis: Medical Bankruptcy

Posted on July 16, 2009
Over 62% of all personal bankruptcies filed in 2007 had a medical cause. The newly coined term, ?medically bankrupt?, refers to those who have filed for bankruptcy with illness or injury being factors in their filing. Although a percentage of those filing under these circumstances were over the age of 65, many were females, often [...

What?s 150 Years in Prison Divided By $65 Billion?

Posted on July 15, 2009
How the U.S. Bankruptcy Information Courts Are Recovering Lost Millions Since Bernie Madoff?s Ponzi scheme was uncovered in December 2008, unprecedented backlash was thrown at the reckless financier?truly a scoundrel of the first water. Madoff?s case seemed serendipitously timed?right when families in America were filing for personal bankruptcy, foreclosing property and left in the [...

Chrysler Files for Bankruptcy: Employees Consider Personal Bankruptcy Solution

Posted on July 15, 2009
Back in May of this year Chrysler filed for chapter 11 bankruptcy and announced its plans to merge with the Italian automaker known as Fiat in order to stay in business. This event marked the first time a major auto company in the United States filed for bankruptcy since 1933, (when auto giant Studebaker filed)...

Michael Jackson ? The Poor Little Rich Man ?Gone But Not Forgotten

Posted on July 13, 2009
Rich? Poor? Bankrupt? The speculation regarding Michael Jackson?s financial status follows him even into the great beyond. The February ?09, Forbes.com estimated Jackson?s net worth at about $350 million, although this was not his entire net worth. He also held about $650 million in real estate as well as at least $100 million worth of Beatles [...

Bankruptcy Information: What a Bankruptcy CAN?T Do

Posted on July 10, 2009
Well, a lot of people seem to know what bankruptcy CAN do, but not everyone seems too familiar with what bankruptcy CAN?T do. In the long run, this sort of bankruptcy information can end up being more useful when deciding if filing for bankruptcy is right for you...

Unemployment Rises: Bankruptcy a Logical Option for Many Americans

Posted on July 09, 2009
New figures were released recently that state the current unemployment rate is up to 9.5 percent in the United States. As much as we?d like to believe that the economy has begun to pull itself out of this deep economic recession, it appears that we?ve still got some sinking to do before any upward momentum [...

Consumers fall behind on loans at record pace

Posted on July 09, 2009
Consumers fall behind on loans at record pace Soaring unemployment and a shrinking economy drove delinquencies on credit card debt to an all-time high in the first quarter.

House Committee Approves Mortgage Modification in Bankruptcy Bill

Posted on January 29, 2009
Yesterday, the House Judiciary Committee approved legislation that would allow bankruptcy judges to modify residential mortgages in chapter 13 bankruptcy.� The legislation is named H.R. 200 and it’s next stop is the�floor of the House of Representatives...

Changing US Bankruptcy Law Top Priority

Posted on January 23, 2009
Not only does President Obama support changing the bankruptcy laws to enable bankruptcy judges to adjust residential mortgages through Chapter 13, but so does the Speaker of the House.� Nancy Pelosi (D-CA) .� House Democrats are trying to push through this legislation as part of the economic stimulus package...

Divorcing? Should you both file for bankruptcy first?

Posted on January 16, 2009
The marriage is broken.� The parties can not reconcile.� One or both of them is working to support the family.� There may be children.� The couple is already struggling to meet monthly debt obligations.� This is an all too familiar scenario that bankruptcy lawyers see all the time...

2005 Bankruptcy Reform Legislation Responsible for Foreclosure Crisis?

Posted on January 14, 2009
An article in the Kansas City Star by Dan Margolies reported that researchers at the Federal Reserve Bank of New York recently argued that Bankruptcy Reform Legislation that went into effect in October 2005 helped trigger the surge in home foreclosures...

Citibank Endorsing Mortgage Cramdown? Is it a Ploy?

Posted on January 09, 2009
A news report by Rueters and the Baltimore Sun indicate there are behind the scenes meetings with Citibank executives and some Democratic legislators that have been supporting the recently introduced legislation that would allow Bankruptcy judges to rewrite or “cramdown” residential mortgage loans in an effort to stem the tide of foreclosures...

Bankruptcy Mortgage Relief Proposed

Posted on January 07, 2009
Representative Brad Miller (D-NC) introduced legislation in the House of Representatives today which would give bankruptcy judges power to modify residential mortgages in bankruptcy.� Senator Dick�Durbin (D-IL) indicated he would reintroduce�similar legislation in the Senate soon as part of the broad economic stimulus package now being worked on by President-elect Obama and Congressional leaders...

Top Legislative Agenda in 2009: Mortgage Relief Through Bankruptcy

Posted on December 11, 2008
Two U.S. lawmakers said Monday that they will start the new legislative session in January by renewing an effort to give homeowners a chance to rework residential mortgages in bankruptcy.� Senator Dick Durbin (D-IL) and Representative Brad Miller (D-NC) said they will introduce legislation to modify bankruptcy laws to give judges in bankruptcy the ability [...

Bankruptcy and Famous People

Posted on November 20, 2008
The vast majority of people I talk to about financial problems feel very guilty about their situation.� Much of the hesitation to pursue bankruptcy arises out of the belief that there is a stigma that attaches once�a bankruptcy is filed.� Certainly it is true that we should not intentionally make decisions that we know or [...

Mortgage Relief in Bankruptcy?

Posted on November 20, 2008
Back in 2005 when Congress overhauled the bankruptcy laws, one of the provisions under consideration was a provision that would have allowed bankruptcy judges to rewrite residential mortgages based on the current value of the real estate.� That provision was dropped from the legislation under intense lobbying...

Bankruptcy Filings Surpass 100,000 in October

Posted on November 20, 2008
It appears the bad economy is hitting consumers hard. The American Bankruptcy Institute reported that bankruptcy filings in October surpassed 100,000. This is the largest number of monthly filings since before the law change in 2005.

Mortgage Relief On The Way?

Posted on February 27, 2008
Senate Bill 2636 (Harry Reid, D, NV), which contains a provision that would allow for the modification of home mortgage loans in bankruptcy, will be up for a vote by the full Senate next week. I urge anyone out there to contact your Senators and urge them to pass this legislation and specifically to keep this [...

House Judiciary Committee Narrowly Passes Mortgage Relief Legislation

Posted on December 12, 2007
This week, the House Judiciary Committee passed legislation sponsored by John Conyers (D-MI) and Steve Chabot (R-OH) that would allow bankruptcy judges to modify some mortgages in chapter 13 bankruptcies.� The highlight of the legislation which will now go to the full House for a vote�is that chapter 13 would allow the debtor to lower [...

Foreclosures Rampant

Posted on October 07, 2007
According to RealtyTrac, on online marketplace for foreclosed properties, a total of 925,986 houses were at some point in the foreclosure process during the first six months of 2007.� This was a 55% increase compared to the same time period in 2006.� That equates to one foreclosure for every 134 households during the first half [...

Credit After Bankruptcy

Posted on September 23, 2007
Recently, an associate professor of law at the University of Iowa, Katherine Porter wrote that “credit solicitations of recent bankruptcy debtors is rampant.”� She studied data collected by the Consumer Bankruptcy Project and found that nearly every debtor receives credit offers shortly after bankruptcy...

Bankruptcy Stigma?

Posted on August 17, 2007
In my experience, most of my clients find it a difficult decision to file for bankruptcy. I find that their concerns and fears are not related to the economics of the situation. That part is usually painfully clear. The fears and anxiety about bankruptcy most of the time arise because of personal [...

Big Bad Credit Card Companies?

Posted on August 01, 2007
I read an editorial in today’s New York Times that discussed the failure of federal agencies that are supposed to keep up with deceptive and unfair practices in the banking and credit card industries. As a consequence, many hard-working Americans who pay their bills are mired in debt and in danger of losing whatever [...

Beware Debt Settlement Agencies

Posted on June 22, 2007
I read an article today from amNY.com about a hairdresser in New York who went to a debt referral agency called “Debt Choice.” They put her in touch with an attorney that does debt settlement negotiation. The firm was Seidelman Law Firm and the hairdresser ended up filing for bankruptcy in order to [...

Latest Bankruptcy Statistics

Posted on June 13, 2007
Bankruptcy filings were up 11.5% in May over the previous month, according to the American Bankruptcy Institute relying on statistics published by the National Bankruptcy Research Center. May 2007 saw an increase in filing of approximately 51% over May 2006...

More Foreclosure News

Posted on June 01, 2007
Foreclosure filings across the United States rose 47% in April compared to the year before. The rate is up to 1 out of every 775 households. The housing boom of the 1990’s and early 2000’s caused many people to speculate in the housing market...

Mortgage v. Credit Card Delinquency Rates

Posted on April 28, 2007
I read some recent reports indicating that default rates on mortgages, especially “sub-prime” mortgages have jumped in the face of the slowing housing market. Credit card delinquencies, on the other hand, have not increased, as some had predicted...

What is Redemption in bankruptcy?

Posted on April 06, 2007
Redemption is a process that is sometimes misunderstood. Redemption is the process of paying a lump sum payment to a secured creditor (lienholder) in exchange for the release of the lien. In Chapter 7 bankruptcy, a debtor can use 11 U.S.C. Section 722 to pay only the fair market value for the collateral, [...

Tips to Avoid Common Debt Reduction Mistakes

Posted on March 30, 2007
Here are some helpful tips that could help you avoid making common mistakes while trying to reduce your debt. 1) STAY FOCUSED. Focus on one debt or one type of debt at a time. If you try to reduce all of your debt at once it can be overwhelming and very discouraging...

Bankruptcy and Immigration

Posted on March 15, 2007
Many of our potential clients have not only financial issues affecting their lives, but also immigration issues. It’s not uncommon for a non-citizen to need a bankruptcy case. The first question is whether or not a non-citizen can even file a case...

Congress Investigating Credit Card Practices

Posted on March 08, 2007
I recently read a Consumer Watch report indicating that the chairman of the Senate’s Permanent Subcommittee on Investigations of the Homeland Security and Government Affairs Committee recently was credited with indicating that regulation and legislation are needed to stop abusive credit card practices...

The Foreclosure Solution

Posted on March 02, 2007
I’ve read a lot of articles and listened to a lot of reports in the media about the very high foreclosure rates across the country. It seems a lot of people are behind on mortgage payments and face foreclosure. While this news saddens me as I think about the families that are struggling [...

Cash Advances and Credit Card Usage Prior to Filing

Posted on February 19, 2007
It is never a good idea to continue to use credit when you know you are not in position to repay the debt. In the bankruptcy context, creditors can object to the discharge of recently incurred debt. There are complicated rules about this, but suffice it to say that if you are in [...

Debit Cards Cause Overdrafts

Posted on February 08, 2007
The Center of Responsible Lending recently published a new study called “Debit Card Danger” that revealed most overdrafts are not caused by checks anymore. They are caused by debit card usage. This isn’t surprising as most people don’t make entries into their check registers every time they use their debit card...

What should I do to clear a bankruptcy from my credit report?

Posted on January 20, 2007
The Fair Credit Reporting Act provides that “negative” information can be reported on a credit report for up to 7 years from the date of last activity. There is an exception for bankruptcy cases. They can remain on a credit report for up to 10 years...

Foreclosure Rates Set to Skyrocket

Posted on December 26, 2006
The New York Times news service has reported that 1 out of every 5 subprime loans are likely to go into foreclosure over the next two years. The highest default rates are expected to be in cities in California, New Jersey, Washington, DC, Michigan, and Nevada...

What exactly is the difference between debt settlement and bankruptcy?

Posted on November 13, 2006
The simple answer is that debt settlement is an out-of-court voluntary arrangement between a debtor and creditors. Bankruptcy is a legal proceeding in federal court that can result in an order by a judge discharging liability. A successful bankruptcy filing results in a court order giving the debtor a “discharge” of debt...

Student Loans - Are these funds considered income in bankruptcy?

Posted on October 27, 2006
This question seems to come up a lot in my conversations with people, especially those working and going to school. The concern is that if student loan funds that are deposited into a bank account are counted as income for purposes of qualifying for chapter 7 bankruptcy relief...

Credit Dispute Letters

Posted on October 18, 2006
I get a lot of inquiries from people asking about credit dispute letters. A lot of us are forced to deal with credit report inaccuracies. Sometimes the reports are inaccurate because they don’t reflect a bankruptcy discharge and that the balance is zero, or sometimes the reports mix up names, etc… Whatever the reason, [...

Types of Bankruptcy

Posted on September 29, 2006
I get a lot of inquiries regarding types of bankruptcy and thought I would just lay out the different types of bankruptcy and have a short discussion regarding which type is appropriate in certain situations. Chapter 7 is the type of bankruptcy that makes up a large majority of all bankruptcy cases filed in the United [...

Can A Prospective Employer Refuse to Hire Me Because of a Bankruptcy?

Posted on September 15, 2006
My last blog post discussed whether or not an employer could terminate someone’s employment because of a bankruptcy case. The answer was clearly no. Is the answer the same when it comes to a prospective employer hiring you? If you review 11 U...

Don?t Believe Your Creditors - You Can Still File For Bankruptcy!

Posted on March 30, 2006
By Richard K Gustafson I’ve heard reports that some credit card company collectors are telling people that they can’t file for bankruptcy on their credit cards anymore. That statement is a lie! Bankruptcy is alive and well! Most studies have shown that 80-90% of people who look into bankruptcy could still qualify for chapter 7 [...

Facing Foreclosure?

Posted on March 15, 2006
By Richard K. Gustafson II If you are facing foreclosure, you’re not alone! There are many reports across the country that discuss rising foreclosure rates. RealtyTrac, the leading online marketplace for foreclosed properties, reported a 13% increase nationwide in December 2005 and increased in every quarter in 2005...

Can I Keep My House and File Bankruptcy?

Posted on March 06, 2006
One of the biggest myths surrounding bankruptcy is that you will lose your house if you file for bankruptcy. I recently met with an elderly couple who had a significant amount of unsecured debt and had struggled financially for many years, just paying the minimums on their credit card payments...

Bankruptcy Reform Not Working

Posted on February 25, 2006
By Richard K Gustafson, II A report released by the National Association of Consumer Bankruptcy Attorneys says that the new reform legislation has failed to stop abuses and instead has thrown up obstacles to people with legitimate reasons to file for bankruptcy...

CREDIT CARDS & BANKRUPTCY: COMMON QUESTIONS

Posted on February 22, 2006
By Richard J. Waple I am often asked questions regarding credit cards and bankruptcies. Each individual case can be different and the answers may vary depending on specific circumstances, so make sure to contact an attorney to discuss the exact nature of your situation...

Identity Theft - What do you do if you?re the victim?

Posted on February 16, 2006
By Richard K. Gustafson II I want to share with you a short story about identity theft and how to combat it. One of the clerks here at the law firm relayed a story of a friend of hers who was the victim of identity theft and asked me for advice. Her friend had been unable [...

Personal Bankruptcy: Another Reason

Posted on February 10, 2006
By Richard K Gustafson II I recently received an email from a potential client. He was having trouble landing employment because each time he would go through an interview process, the prospective employer would run a credit report and refuse to hire him...

Bankruptcy Law Reform: Why 4 Years of Tax Returns?

Posted on January 24, 2006
By Richard K Gustafson II I recently received an email from someone asking why the new law requires 4 years of income tax returns to file bankruptcy. The emailer also wanted to know if bankruptcy would impact future tax filings. As for the emailers first question, why 4 years worth of tax returns, I have to [...

How Is My Credit Score Calculated?

Posted on January 20, 2006
There seems to be a lot of confusion and secrecy about what factors are used to determine one’s credit score. Over the years, many people have asked me about their credit scores and how they are calculated. I was always able to give these people a general idea about what is considered a positive or [...

Retirement planning

Posted on December 16, 2005
Do you sometimes wonder how you are going to make ends meet when the time comes to retire? Have you given up hope of ever retiring? Do you worry whether there will any money available for you upon your retirement from social security, medicare and/or medicaid? These are very important questions...

Bankruptcy Blog Welcome!

Posted on July 01, 2005
Welcome to LegalHelpers.com’s blog. This blog is meant to be an informal way to pass on information about bankruptcy in short, easy to read and hopefully easy to understand language. I hope you find this blog helpful in your quest for information about Bankruptcy or financial planning...