Not all news is bad news on the employment front. According to CBSDFW.COM, “North Texas stands out as one of the few bright spots after a disappointing jobs report showed U.S. unemployment ticked up again in the month of April.” According to reports, the entire country added slightly more than 50,000 jobs last month but North Texas has an estimated 83,000 more jobs than it did last year at this time.
Even Fox News hosts highlighted the success of Rick Perry’s state, touting his job creation record as a top selling point for a potential GOP run for the White House in 2014. On a news report last week, Fox and Friends noted that Texas had created over 213,700 jobs in the last two years. Conservative co-host Gretchen Carlson believes this can be attributed to the state’s attitude of “lowering taxes and regulations.”
Critics of Rick Perry contend that some of his methods to lure business have been controversial and he may have used taxpayer-funded subsidies, including Texas Enterprise Fund (TEF) and Texas Emerging Technology Fund (ETF), to lure businesses from other states.
Some economists are also critical of the types of jobs created in the state. The American Independent in an article from June 15 stated, “While employment in Texas has been slightly more plentiful than in other states during the recession, the number of the lowest-paying jobs has also risen sharply in Texas. From 2007 to 2010, the number of minimum wage workers in Texas rose from 221,000 to 550,000, an increase of nearly 150 percent.”
Regardless of the types of jobs which have been created, it is important to note what actions actually help create jobs. Many people understand that it is really about entrepreneurs creating businesses and taking chances selling a service or product for more than it costs to make. It is about hiring workers and increasing the productivity of our great nation. How can this most easily be accomplished? It can be accomplished by eliminating unnecessary government regulations.
According to recent new polls, many voters agree that the Federal government regulations are an economic threat and will not help the economy. By a margin of 55 to 36 percent, voters agreed that the Federal Government had instituted too many regulations. Republicans held the highest percentage of those who were concerned about regulations by a margin of 77 to 16%.
Most Americans give little thought to job creation and Federal Government regulatory practices, but they are concerned if they lose their job, if they lack affordable medical care or if the cost of goods rises faster than their real wages. Many Americans are facing bankruptcy and need real solutions now.
Filing for Bankruptcy Protection
If you are facing a financial crisis and you need help, bankruptcy protection may be the answer. Bankruptcy is a serious financial decision and should not be done without first consulting with a bankruptcy lawyer.
Bankruptcy lawyers have helped thousands of clients make a fresh financial start. Filing for Chapter 7 Bankruptcy will allow most qualifying debtors to discharge most of their unsecured debt (medical bills, credit card payments, unsecured loans). Filing Chapter 13 Bankruptcy will allow qualifying debtors to create a 3 to 5 year bankruptcy repayment plan to repay creditors, often with more favorable debt repayment terms.
Does filing bankruptcy discharge all debts? No, while it can stop a home foreclosure, bank account levy, wage garnishments and property repossession, bankruptcy does not eliminate all debts. Certain tax obligations, student loans, child support payments, and spousal support payments will not be discharged by filing for bankruptcy.
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Only a bankruptcy lawyer can give you legal advice whether or not you should file for bankruptcy protection, but you have to decide if it is the right financial decision.
This personal bankruptcy story was posted in June of 2011:
“I am wondering if you can help me decide whether to file for bankruptcy. Four years ago I was a newlywed. I had perfect credit. I had just bought a house, two cars, credit cards with limits in check, working a good job. One month after we purchased our home, my ex-wife left me and left the country leaving me with all the debt.
I couldn’t sell the house, or car, refinance or anything because everything was in both of our names and she refused to sign-off on anything. I also went through a nasty depression, lost my job and after a year struggling to keep everything together I had decided to let everything go, move in with parents.
My home went into foreclosure last year and it was auctioned off January 2010. I lost my car in December 2009 with a $5000 deficiency after repossession. My last credit card payment was in late 2009. Last year I ended up in the hospital with a $4000 medical bill. I stopped paying all of my bills in December 2009 and I have roughly $24,000 in credit card and hospital bills, including interest and repossession balance. I work a part-time job making roughly $1,000 per month. I am desperately trying to find better work.”
For this debtor, the decision to file for bankruptcy should be made only after seeking the advice of a bankruptcy lawyer. However, searching for information about bankruptcy before you consult with a certified or licensed legal representative can be smart, and bankruptcy forums can provide information about the types of questions you may need when you seek legal help.
Some filers try to file Pro Se, without representation, and some are successful, others are not. Even with legal representation, only 60 percent of Chapter 13 Bankruptcy filers are successful in finishing Chapter 13 bankruptcy. Most bankruptcy filers fall behind on their payments.
Divorce is one of the leading causes of bankruptcy. Other reasons debtors file for bankruptcy can include: unexpected medical expenses, sudden loss of income, and over extension on credit card debt.
How do you know if you are bankrupt? You are completely financially bankrupt if your current sustainable income plus any cash reserves will not pay all of your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans while paying on them for five years. Paying off debts for five years is chosen because five years is the maximum legal number of years a United States Bankruptcy Court allows an individual to work their way out of bankruptcy protection.
If you are bankrupt, you need relief from the stress of debt and you live in or around the metropolitan area of Detroit, Michigan, contact us at www.betterbankruptcy.com . We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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AP News reports that Patricia Kluge, once married to the media mogul John Kluge and who reportedly received a $1 billion divorce settlement package in 1990, has now filed for Chapter 7 Bankruptcy protection with her third husband, William Moses. The two, according to bankruptcy court records dated June 16, 2011, reported assets worth $1 to $10 million and debt of $50 million.
Bankruptcy can happen to anyone and is less about how much money you make and more about how your money is managed. How do you know if you are bankrupt? If your current sustainable income plus any cash reserves will not pay all of your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans while paying on them for five years.
If you are rich and have a lavish lifestyle and you have the income to sustain it, then you will not go bankrupt. If you spend more than you make, regardless of your income, eventually you will be bankrupt.
Learning to manage money will not necessarily keep you from going bankrupt, but it can help. There are some events, however, including divorce, catastrophic events, sudden loss of income, or medical problems, which can cause severe financial hardships.
Kluge and Moses, although they lived a lavish lifestyle, have the right to file for bankruptcy protection. Extending credit is a two-edged sword. On one edge of the sword lies reward and on the other edge of the sword lies risk. Both debtors and creditors understand the risk and rewards of credit, so did those creditors who extended Kluge and Moses the approximate $50 million.
Whether or not you are a former billionaire facing bankruptcy or you have always lived paycheck to paycheck, U.S. bankruptcy law, under certain conditions, affords you the legal right to file for bankruptcy protection.
If you determine you need relief from the stress of debt and you live in or around the metropolitan areas of Los Angeles or Long Beach, California, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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CNNMoney reports that the United States has until August 2, 2011, until the U.S. Treasury Department will not be able to pay the bills without borrowing more money. However, at a conference held by the Committee for a Responsible Federal Budget, former Congressional Budget Office director Barry Anderson stated, “In the next six weeks, there really isn’t the time to technically draft that legislation, take it through the Congress, vote on it and have it signed.”
Different groups have started to work together to formulate budget plans, but what happens if August 2 arrives and the legislature cannot come to an agreement? No one knows for sure, but the thought is that the U.S. Government may have to delay payments to U.S. citizens and government contractors.
One of the biggest concerns is how all the indecision could be viewed by the international community, many of which are beginning to doubt the U.S. and their ability to manage their financial affairs. According to news reports, the worst thing that could happen is for confidence in the U.S. to plummet, causing a “cascade of negative events” which could be felt worldwide.
While the U.S. Government attempts to put the Federal “house” in order, many Americans are struggling to keep their own financial affairs afloat. Since 2008, Americans have seen their home values plummet, a high increase in joblessness, and a higher cost of living.
In the last few months, even with the Obama stimulus plan, we have not seen the employment rates increase or the economy rebound. Add the increasing gas and commodity prices and families are really feeling the pinch.
Hopefully, the U.S. Legislature can begin to make significant cuts and help the Federal Government become solvent. It will take guts and willingness to make hard decisions. Americans will have to be willing to sacrifice and lose their “entitlement” mentality, but it needs to be done before it’s too late.
Discharging debts with Bankruptcy
Unlike the Federal Government who simply prints more money to cover their debts, you do not have that option. So what can you do if you are facing a home foreclosure, bank account levies, property repossessions or wage garnishments? There may be several options to consider, including bankruptcy.
Bankruptcy may allow you to discharge most of your unsecured debts or repay your debts with a 3 to 5 year debt repayment plan. Filing Bankruptcy will also initiate an automatic stay to stop a home foreclosure and stop creditor harassment actions.
Are all debts discharged by filing for bankruptcy? Most unsecured debts can be discharged. Debts not discharged can vary but generally include: tax debts, spousal and child support debt payments, debts not listed on bankruptcy schedules, educational loan payments, fines for injuries to persons or property, DUI fines or penalties assessed for personal injury, debts owed to tax-advantaged retirement plans, and cooperative housing debts.
Hiring a Bankruptcy Lawyer
If you are considering filing for bankruptcy protection, contact a bankruptcy attorney. Bankruptcy lawyers work with thousands of clients and can make sure you find the best option to solve your financial crisis.
Bankruptcy laws are more complicated than in the past. Changes to bankruptcy laws have made it more difficult for some filers to file Chapter 7 Bankruptcy. If you are unsure what type of bankruptcy you can file, contact a bankruptcy lawyer
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The Los Angeles Times is reporting that three of the nation’s banks have been chastised by the Obama administration for failing to make what the administration declares are “substantial improvements” in the Home Affordable Modification Program or HAMP.
Bank of America, JPMorgan and Wells Fargo may lose out on large financial incentives that they have been receiving through the HAMP foreclosure relief program if their business practices do not substantially improve.
The Federal HAMP program has offered over $75-billion to banks to give them incentives to help owners with the mortgage modification program. This program has been consistently criticized by Republicans and other consumer advocates as ineffective and opponents claim it continues to fall short of its goal to solve the housing crisis.
The Treasury Department has stated that there will be no more payments made to these banks until they can improve their performance. Paul Leonard, California director for the Center for Responsible Lending applauded the action of the Treasury Department stating, “We’re two years into the modification program and only now is the Treasury Department taking action to enforce its own program rules. Unfortunately, it comes too late for all the thousands of borrowers who have already passed through the program into foreclosure.”
The banks had mixed reaction to the news. JPMorgan Chase and Wells Fargo did not agree with the Federal Governments evaluation of their progress with the program, and Wells Fargo said they would attempt to contest the data. Bank of America claims they have made significant progress with their efforts but concede that they may still have work to do.
A spokeswoman for Bank of America claims that. “The report reviews activities that date back a year or more and in no way reflects the improvements Wells Fargo has made in our processes and the work we have done to help homeowners.”
The Federal Government highlights the failures of Bank of America and their need to improve their efforts to contact and identify borrowers who may participate in the program, identify how the bank makes their decisions and evaluate whether the right incentive payments are being made through the HAMP program.
Apparently, out of the top 10 HAMP service providers, no company has managed to meet the Federal Governments benchmarks. Republicans and proponents all agree; substantial improvements are needed by everyone if the goal of helping 3 million to 4 million borrowers escape foreclosure by December 2012 is to be met.
HAMP and Bankruptcy
According to a news reports, the Home Affordable Modification Program (HAMP) now allows desperate homeowners to qualify for HAMP, even if they have filed for bankruptcy. Under the new guidelines, bankruptcy filers may ask their lender for a loan modification even if they have filed a Chapter 7 or Chapter13 Bankruptcy. Now services providers are required to consider the filer’s request and the bankruptcy attorney or the trustee may be asked to submit the HAMP request.
Keep in mind that if you have already filed for Chapter 13 Bankruptcy the trail period for the loan modification, which is generally required, may be waived or a waiver request may be made by your bankruptcy lawyer.
How do you apply for a modification? Talk to your bankruptcy attorney and find out all the details of what you need to do. In general, to request a loan modification you will need to submit a Request for Modification and Affidavit (RMA), a Tax Authorization Form (form 4506-EZ) and proof of income. Bankruptcy filers will also have to submit copies of their bankruptcy petition and bankruptcy schedules.
Hiring a Bankruptcy Lawyer
Everyone’s financial situation is different, and filing for bankruptcy is an important financial decision. Do not file for bankruptcy without understanding how it can affect your financial future. Keep in mind that filing for bankruptcy may allow you to avoid home foreclosure, wage garnishments, bank account levies and creditor harassment.
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According to an article in the New York Times dated June 19, 2011, it will take lenders, in the state of New York, 62 years to repossess the 213,000 houses currently in default in the foreclosure process. That pace is the slowest in the nation. New Jersey has the second slowest pace of dealing with foreclosures, and they are projected to be done in 49 years.
Why does it take these states so long to process a home foreclosure? These two states handle all of their foreclosures through the courts. In the 27 states that do not use the court system, the process is much faster.
Several factors are causing the slowdown in the processing of foreclosures, even in states where they do not use the court system. First, the robo-signing controversy has slowed the foreclosure process for many lenders and investment bankers. They now have to be sure their paperwork is correct, or they stand a chance of losing the house altogether.
Secondly, the glut of foreclosures has driven the auction prices down. Foreclosure homes are priced low, which is bringing the overall market value of homes down. Mortgage companies may attempt to keep foreclosures off the market to stabilize the value of other loans. Allowing a defaulted homeowner to remain in the home is more attractive than selling it for pennies on the dollar and driving the prices of the rest of your portfolio down.
Finally, once a lender sells off a foreclosure, if there is a loss, it reflects against the overall balance sheet of the lending company. Property taxing authorities will not catch up with the loss in value of the homes in a housing crisis or recession because it is primarily how they finance their budget.
When property values drastically drop, so does the taxing authority’s income. Therefore, they try to hold the value of property by artificially inflating the data and fighting with taxpayers about the value of their property.
Lenders have historically used the taxing authority’s values for justifying tax audits of their inventory and net worth. The net worth on a balance sheet creates opportunities for leverage and growth. Lenders and investment banks are reluctant to take a loss on foreclosures.
Foreclosures in the housing crisis are creating havoc. Not only are millions of Americans facing bankruptcy because of foreclosures on their property, the lenders themselves are close to bankruptcy. Eventually, the 2.9 million foreclosure notices handed out in 2010 will have to be dealt with, it is just a matter of time.
Are you facing a home foreclosure? Do you need help from a bankruptcy lawyer? If you need relief from the stress of debt and you live in or around the metropolitan area of New York City, New York, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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Zombies, as you might remember, are fictional human characters that have been killed but come back to some semblance of life as a flesh-eating character. They stumble around as their flesh decays, blood thirsty for living flesh.
According to writer Dick Hogan, you should beware of the “zombie notes.” Hogan posted a news article on June 18, 2011, on a Florida news website. The article was about the recent lawsuit filed by David Cruz Jr. contending Fannie Mae was fraudulent in their dealings with him.
The fraud stems from the foreclosure lawsuit filed earlier by Fannie Mae. Fannie Mae made an offer to release the obligation of a $123,750 note on property owned by Cruz if he would deed the Fort Myers house back to Fannie Mae.
Cruz agreed to the deal and deeded the property back. It appears from court records in the new lawsuit, that Cruz did not get his loan forgiven. Apparently, Fannie Mae had already sold the note when they made the deal.
Hogan penned the term “zombie notes” to explain the mortgage deal Cruz made with Fanny Mae where he handed the deed over in exchange for the note. Cruz must have thought the deal killed the note as agreed, but evidently the note came back to life to haunt him.
Foreclosures have risen to a record level of 1.05 million, eclipsing the previous record of 918,000. That means 26% of all homes sold in 2010 were foreclosures. Those foreclosure numbers aren’t expected to wane anytime soon. Real estate data firm RealtyTrac found that 2.9 million homeowners received foreclosure notices in 2010, with 20% more expected to be in trouble this year.
Foreclosures can also be a leading cause of bankruptcy. There were over 1.5 million Americans who filed for bankruptcy protection in 2010. The numbers seem to be waning, but there high bankruptcy numbers are expected in 2011 as well.
The recession and housing crisis are devastating to homeowners, but issues raised by the Cruz case can be even more frustrating. There is no easy way out of a bad financial situation. It takes hard work, discipline and determination.
If you are facing a difficult financial situation, bankruptcy may be an option. Bankruptcy laws can be complicated, and you made need assistance from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Wichita, Kansas, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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Seniors have begun filing for bankruptcy at increasingly high rates. Some reports estimate that senior filings have increased more than 12% over the last 13 years and now account for approximately 22% of all bankruptcies in the U.S.
Due to increased healthcare costs, depreciating home values, and rampant unemployment, seniors, who have traditionally prided themselves on paying their bills and not having bad credit, have depleted their saving and charged extensively on their credit cards. Many seniors have concluded that their retirement will not be financed with their 401ks as they had hoped, but they will now have to depend entirely on their Social Security benefits. Unfortunately, due to the economic condition of the country, even that plan may be in jeopardy.
CNNMoney reported Friday that AARP, who previously opposed changes to the Social Security retirement program, now admits that some type of cuts or program changes are needed to ensure the solvency of the program.
The Wall Street Journal quoted the lobbying group by stating that they are ready to “drop their longstanding opposition to cutting Social Security benefits.” But the group maintains that any changes to the program should “do as much as possible to maintain benefits” and provide adequate time for older Americans to adjust to the changes.
Unfortunately, there has not been a consensus between legislative members about what is necessary to make Social Security solvent. AARP admits that even between its own members there has not been a consensus.
Changes which have been proposed include progressive indexing which would lower payments for recipients who have a higher-income, changing the initial benefit that retirees may be eligible to receive, or raising the retirement age. Others have proposed privatization of retirement benefits which would allow Americans to begin to make their own investments in stocks and bonds.
AARP strongly opposes any privatization efforts but has supported raising the amount of income which is taxed to fund Social Security benefits. They believe that higher income earners could most readily absorb the additional tax.
There has been mixed reactions from other advocacy groups to the AARP news. Max Richtman, acting CEO of the National Committee to Preserve Social Security and Medicare, said, “We’re extremely disappointed.” While others such as Jonathan Cowan, president of Third Way, a centrist Democratic think tank stated he believes, “Today marks a watershed moment in American politics. For decades, AARP has stood against any substantial changes to Social Security. Now that they have opened the door to reform, it is time for lawmakers to walk through it.”
No one wants to see massive cuts made to our standard of living, but we will all have to begin to make sacrifices to get our country solvent. Clearly, to address the current economic crisis and reduce the debt obligations of America, changes will have to be made to Social Security benefits, and the sooner all of us can begin to work together to make those changes, the better.
Hiring a Bankruptcy Lawyer
If you are like thousands of other seniors who have depleted your savings accounts, home equity and credit cards just to meet your most necessary financial obligations, you may need help. Bankruptcy is a legal remedy available to individuals who meet certain requirements.
Filing Chapter 7 Bankruptcy may allow you to discharge most of your unsecured debt. Filing for Chapter 13 Bankruptcy may allow you to reschedule your unsecure debt payments with more favorable debt repayment terms and repay your debts over a three to five year period.
Everyone does not qualify to file for bankruptcy protection, and bankruptcy laws can be difficult to understand. If you are considering bankruptcy, contact a bankruptcy lawyer. Find out if filing for bankruptcy is right for you.
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Capitol One Financial Corporation coined the advertising phrase, “What’s in your wallet?” and parlayed the question into a multi-billion dollar empire. For the average person, the answer to the question could very well be, “nothing.”
Bloomberg news reported June 17, 2011, how Capital One Financial Corporation is currently expanding their financial empire with the purchase of ING Direct USA. The purchase makes Capital One the sixth largest bank by deposit in the United States. They paid $9 billion for ING after having recently acquired North Fork Bancorp and the Hibernia Corporation.
Ironically, the move to buy ING resulted in the purchase of a credit card company which averaged only 5.8 percent APR on the use of their cards compared to an industry wide APR of 16.2 percent. Capital One is currently offering credit cards with an APR between 11.9 and 22.9 percent.
In 1980, the federal government passed a special law which allowed national banks to ignore state usury limits and peg the rate of interest at a certain number of points above the Federal Reserve discount rate.
The federal usury rate maximum currently has an APR of 24 percent. New banking laws that went into effect last year now require a notice of 15 days before banking institutions, like a credit card company, can raise interest rates. Prior to the law changes, many banks raised interest rates higher than 30 percent.
If you have a credit card with an APR of 24 percent or more, and you put $10,000 on your credit card and make 2% minimum payments, your minimum payment will never reduce your debt. If you pay $200 a month for the rest of your life, at our current federal maximum rate legally allowed, you will never pay off the $10,000 of debt, and you may actually owe more than the day you began making the payments.
Laws in most states do not adequately regulate credit card debt, and it may be easy for many consumers to acquire too much debt. If you have excessive debt and you are unable to pay your bills, you may be bankrupt.
How do you know if you are bankrupt? Generally if your current sustainable income plus any cash reserves will not pay all of your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans while paying on them for five years.
If there is nothing in your wallet, you may be a bankruptcy candidate, but you need to talk to a bankruptcy lawyer for more information. If you need relief from the stress of debt and you live in or around the metropolitan area of Ann Arbor, Michigan, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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Have you ever bought a new car and realize the moment you drove it off the parking lot the value of the car plummeted? Unfortunately, used homes are also depreciating in value.
According to the S&P/Case-Sciller index of home values in 20 U.S. Cities, home prices slid by 3.6 percent in the first quarter of 2011, the lowest prices since 2003. The sell prices in the study included pre-owned homes that have been compared to other pre-owned homes sold. Comparing new home pricing is a different matter.
Given the current housing crisis, there is a glut of pre-owned homes competing with new homes. Many previous homeowners can rent the newer and larger homes for about half of what is owed on their mortgage loans.
The value of homes are susceptible to economic downturns, including new homes. If the majority of people cannot afford new homes, new home sales plummet. The moment a homeowner closes on a new home, the home then becomes pre-owned, and the value of the new home decreases. Is there any wonder people are getting upside down on their loans, especially if they just borrowed money for a new home? How long will the current housing crisis last? Will Americans view purchasing a home like purchasing a vehicle and expect the home to depreciate? What happens if you have purchased a home and the value of your loan is worth more than your home?
If you have borrowed more money than the value of your home, if you face a financial crisis, you may be unable to pay your mortgage, which can lead to bankruptcy and foreclosure.
If you are facing foreclosure and are considering filing for bankruptcy protection, you may need help from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Springfield, Massachusetts, contact us at www.betterbankruptcy.com. We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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