Unemployment, Foreclosure, Bankruptcy and Now QE4?

By Bob P Jones

What in the world is going on? I thought the Fed told us that everything was getting better and we were on the road to recovery. Last week, the government released the unemployment numbers showing a decline to 7.7% from 7.9%. This sounds like great news, but are these the actual numbers or are they just the stated numbers? Many statisticians have a different opinion and believe the government is cooking the books to show what they want the American people to believe. Recently, the bankruptcy filing numbers for 2012 ending in September were released showing once again a decline from 1.5 million in 2011 to close to 1.3 million for 2012. Once again, this all sounds like things are really turning around. Looking at the foreclosure numbers for 2012 we can see over 1.5 million homes in foreclosure nationwide. In November 2012, one in every 728 homes received a foreclosure notice nationwide. While the actual foreclosure filing rate slightly declined the bank repossessions increased for the first time since October 2010. Experts are now saying that this is more evidence that shows the US is past the worst part of the foreclosure problem that started six years ago.

All of this news seems too good to be true. My grandfather used to tell me, "When someone tells you something that sounds too good to be true, it probably is too good to be true." I started doing some digging of my own to see why the bankruptcy filing and foreclosure numbers continued to decline alongside of the phony unemployment numbers. What I came up with was frightening. Back in September 2012, the Fed announced QE3 where they would be pushing out $40 billion a month to member banks to buy back mortgage guaranteed securities. This bothers me because the Fed is doing nothing more than printing $40 billion a month out of thin air and buying back Americans home loans. What's interesting is how this is the fourth quantitative easing package since the financial meltdown back in 2007 with no relief to Main St., America. The only people making out like bandits are all the big Federal Reserve member banks. Yesterday, another bombshell dropped when Mr. Bernanke announced QE 4 to increase the buyback of mortgage securities to the tune of an additional $45 million month. That is $85 billion month being printed out of thin air to buyback home loans of good hard working Americans. They say this will continue until the unemployment rate reaches 6.5%. In reality, if you change the numbers around that could come next week or in 10 years.

Back to the number of Americans filing bankruptcy and the lower foreclosure rates, while I was wondering why these numbers were declining in this terrible economy, all I had to do is take a look at the consumer debt of the US. What I found out is why I believe the bankruptcy filing and foreclosure rate has dropped. Back when the financial market almost collapsed in 2007, banks scrambled quickly to close credit lines and lower available balances on credit cards to limit their liability. With many people's credit lines cut off they had no other choice but to file bankruptcy to wipe out the debt they could no longer afford to pay. At that time, most people were living by robbing Peter to pay Paul. They borrow from one to pay the other and when that dried up, give it credit limit increase or get a new line of credit. That's when the light came on and I realized the mess that almost took the banks down in 2007 was happening again. Creditors are once again free to loan to just about anyone outside of mortgages. The mortgage industry has now tightened their underwriting making it next to impossible to get a home loan. Any ways, looking at the numbers for total consumer debt rose to a record $2.75 trillion at the end of October. This makes it very apparent that most Americans are once again kicking the can down the road, while waiting for the real estate and job market to return. From the way it looks, if I were them I wouldn't hold my breath.

The author is a professional that formed DebtFreeBankruptcyAttorney.Com which provides information for debtors considering filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy and helps individuals stop foreclosure and eliminate their debt by putting them in touch with a local bankruptcy attorney. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Is Filing Bankruptcy Immoral and What Does the Bible Have To Say?

By Bob P Jones

It's common knowledge that many Americans are now in financial distress because of a lifestyle that the US could no longer sustain. Seven or eight years ago, many people were bragging about their summer home at the Colorado River and their winter ski getaway in Tahoe. Of course, this was all based on the over inflated equity of individuals real estate that allowed them buying power that was totally unsustainable. Some people didn't have the vacation homes, but bought a house that they could no way afford in their lifetime. Bankers and loan brokers told their clients there was nothing wrong with what they were doing and if they got in a bind, they cash out and buy something smaller. Everyone knows how this all ended with most of these people losing their homes to foreclosure. The ones that really got hurt are the ones that lost their jobs or their businesses and economic downturn when the real estate bubble burst. Having nowhere else to turn, a quick call to a bankruptcy attorney and they found out their only option was filing bankruptcy.

Traditionally, Americans have prided themselves on their moral values and honesty. Many Americans filing bankruptcy have a battle going on in their mind on whether or not it is honest or immoral to file for bankruptcy. Sure, how they got there might've not been the most honest way, but now, there are no other options and that's what bankruptcy filing was created for. The media has done a good job letting us and our children know that being rich is more important than being honest. Living like a rock star has popped up on many reality shows, giving people an idea that that kind of lifestyle is okay in any one can do it. When these people put themselves in this extreme debt situation, filing for bankruptcy was probably the last thing they were thinking about.

Now that the problem is here, how do you fix the damage? Is filing bankruptcy immoral and an unpardonable sin? No, our God is a gracious God and understands that people are just about capable of anything. In the Bible, it speaks of forgiveness over and over again and this includes debt. In Deuteronomy 15:1-2 "At the end of every seven years thou shalt make a release. And this is the manner of the release: Every creditor that lendeth ought unto his neighbor shall release it; he shall not exact it of his neighbor, or of his brother; because it is called the Lord's release." In fact, this is another example of the United States being a Christian nation because when Congress created bankruptcy they allowed an individual to file Chapter 7 bankruptcy every seven years. This seven-year debt forgiveness shows the philosophical underpinning of Chapter 7 in the bankruptcy code. You can see the parallel between the Bible and American laws throughout history.

In a nutshell, there is nothing immoral about filing bankruptcy according to the Bible except when a person takes on debt with no intention of paying it back. This would be considered stealing. The topic of the bankruptcy stirs up many emotions. To name a few anger, guilt and despair come to mind. Sometimes talking with a bankruptcy attorney will allow a person to let some of the stress go when they find out they are not alone as many others are facing the same problems.

The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Chapter 7 Versus Chapter 13 Bankruptcy: Which Is The Right Option For You?

By Everette Jamison

In the United States, most bankruptcies are filed under Chapter 7 or Chapter 13. Determining which one fits your situation will depend on your income, your debts and your assets, along with your financial goals. You should consult with a bankruptcy attorney before moving forward with either option.

What You Should Know

While bankruptcy law will eliminate some of your debt, that doesn't mean it will erase all of it. Prior to filing for bankruptcy, you should know exactly where you stand with your financial obligations. Generally speaking, you can eliminate credit card debt through both types of bankruptcy. However, there are certain types of debt you may still have to deal with, such as alimony, child support, student loans, taxes, and secured debt. In certain cases, Chapter 13 may help while Chapter 7 will not. This are matters on which your bankruptcy attorney will advise you.

Filing Under Chapter 7

This liquidation bankruptcy law is intended to eliminate most of your unsecured debt, including medical bills and credit card payments. Note that you will need to demonstrate virtually no disposable income in order to file for this type of bankruptcy.

If you decide to take this step, a trustee will be appointed to handle your case. Along with reviewing the required papers and supporting documents, the trustee is also responsible for selling any nonexempt property you have in order to repay your creditors. Your creditors will receive nothing if you own no property. Consequently, Chapter 7 bankruptcy is mainly intended for low income applicants who want to clear up their unsecured debts and have virtually no assets.

Filing Under Chapter 13

This is a reorganization bankruptcy law intended for those who have regular income and are able to repay at least part of what they owe with a reorganization plan. If you cannot qualify for Chapter 7 bankruptcy because your income is too high, taking this route may be your only option. It's worth noting Chapter 13 provides several benefits that are unrelated to your income.

With Chapter 13 bankruptcy, you will be able to retain your nonexempt assets along with the rest of your property. In addition, the amount you owe will be based on your income, your expenses, and the nature of your debt.

Since reorganization is the key element here, it was designed for applicants who are able to make monthly payments. Such applicants can typically get back on track in the event they have missed car or mortgage payments, and can keep up with those payments going forward. You will also be required to pay off your nondischargeable debts, including child support or alimony arrears.

Things You Can Do By Filing For Chapter 13

You can avoid mortgage foreclosure. The lender will be compelled to accept a plan in which you submit the payments you have missed within a certain period of time while keeping up with your current payments. To establish this kind of plan, you must prove that, in the future, your income will be sufficient for you to abide by these requirements.

Because your future income will be used for funding your repayment plan, you will be able to keep any nonexempt property you may have.

In some cases, debtors can reduce a debt based on the replacement value of the property that secures it, and then clear up the debt through their replacement plan. For example, suppose you owe $15,000 on a car loan and the vehicle is only worth $11,000. You can present a plan that will pay the creditor $11,000, and the balance of the loan will be discharged.

However, as your bankruptcy attorney will advise, you cannot force this type of loan if you bought the vehicle within the 30-month period prior to filing for bankruptcy. With regard to other personal property, you cannot force such a plan for a secured debt if you bought the underlying property within the 12-month period prior to filing for bankruptcy.

The decision to file for Chapter 7 or Chapter 13 bankruptcy should not be made lightly. It is highly recommended that you speak with an experienced lawyer who can advise you regarding which option best accommodates your circumstances.

Find out more information about other legal topics. Click the link to visit www.EphraimLaw.com

Choosing Between Debt Relief Options

By Richard Feinberg

Dealing with debt burdens is common in today's economy. With so many of us struggling to make ends meet, even a minor financial hardship can cause major trouble for our futures. Finding help with your debts is easy, but knowing which one is right may not be. Therefore, it is important to evaluate your current and potential future situations against the options to get a better idea of how to resolve your debts.

The Options

Debt relief options run the spectrum from a personalized budget aimed at reducing debts on your own, to settling with creditors, and through more guided means like bankruptcy. The least intrusive method is a debt management plan. These are essentially a structure debt repayment plan designed by you to target one of your debts and funneling as much of your extra cash towards it until paid off. The idea is to knock out your debts one at a time until they are all paid off or sufficiently lowered.

Debt negotiations and settlement plans are other avenues, which basically involves arranging a repayment plan with creditors directly. In debt negotiations, you are typically pursuing a lowered monthly payment or modified payment term. While these can be effective, not everyone is successful in negotiating with creditors. Debt settlements may also be arranged with a creditor, allowing you to pay less than is actually owed. These can also be difficult to come by.

While bankruptcy is generally thought of as the preferred option, it can be quite beneficial for many people experiencing financial trouble. Besides helping to eliminate your debts bankruptcy can stop debt collection procedures and prevent undesirable consequences, such as foreclosure or repossession.

Choosing The Best

Knowing which option is best for your really depends on your current financial situation and what risks you may be facing. If you can afford to repay some of your debts, even with a modified payment term, and have nothing of value at risk of repossession or liquidation, debt management plans or negotiations with creditors could be an option.

If you are having a difficult time managing minimum payments on your accounts, have assets at risk of foreclosure or repossession or are fearful your financial hardship could be more prolonged, bankruptcy could be your better option. Filing for bankruptcy is the best way to put an immediate halt to debt collections, foreclosures, repossessions, wage garnishments and further penalty fees. Bankruptcy can give you a chance to take control over your debts without the stress and continued uphill battle of debt management when income is insufficient.

Richard Feinberg has represented many large banks, financial institutions and insurance companies, but his practice is now concentrated solely on representing the interests of consumers in bankruptcy and foreclosure defense. As a Tampa bankruptcy attorney, Richard has had the opportunity to help hundreds of people find relief from their debts and gain a sense of financial freedom.

The Automatic Stay In Bankruptcy

By Christopher M

For many people, the benefits of the bankruptcy process are far reaching. One of the most sought after perks of the bankruptcy process is the protection from creditors and debt collections. As such, the automatic stay can be one of best parts of filing for bankruptcy, but there are still some things you should know about how this order works.

Umbrella Of Protection

When you file for bankruptcy an automatic stay order is issued. This order is served to creditors and prohibits them from making further collection attempts on the debt. Under this order, creditors cannot contact you; send you notifications regarding your debt or make attempts to take possession of your assets. The automatic stay order is also able to halt any repossession, wage garnishment or foreclosure proceedings.

While creditors may not like the fact they are restricted from making collection attempts they are required to adhere to the automatic stay, by Federal law. There are instances in which creditors may continue to attempt debt collections. If this happens, you need to notify creditors of your case by sending a copy of your "Notice of Filing Bankruptcy" and contact your bankruptcy attorney right away. Creditors that continue to make collection attempts after receiving these notifications could face penalty fines or more serious consequences.

The protection offered by this order does not apply to all debts. Unpaid child or spousal support payments are not protected under the automatic stay, and are collectible as originally determined. Generally, back taxes and ongoing tax debt obligations are also not protected under this order, and the IRS is free to continue collections as they desire. Student loan debts, pension loan payments and criminal restitution payments are also rarely offered protection under the automatic stay order.

After A Discharge

Once your debts have been discharged in bankruptcy your debts have been resolved and, therefore, become non-collectible. However, this isn't to say that some creditors may not try to collect in the future. If your debts are discharged in a Chapter 7 case, the debts eligible for the automatic stay become permanent. This means that these debts cannot legally be pursued again in the future by the creditor. After a Chapter 13 bankruptcy, the automatic stay order becomes permanent and creditors cannot make attempts to collect outside of the terms outlined in the original repayment plan. In other words, any remaining debt that was not repaid according to the Chapter 13 plan becomes non-collectible.

The Lee Law Firm aims to help local residents resolve their debt issues and achieve a financially healthy future. Their mission is to provide high quality legal representation that to assist hard working people lower monthly debt payments, stop wage garnishment, prevent foreclosures, and stop calls from creditors. The Lee Law Firm bankruptcy attorneys have many years of experience in all aspects of Chapter 7 and Chapter 13 Bankruptcy in Dallas.

Out-Of-Control Creditors, Foreclosure on The Horizon? File Bankruptcy

By Bob P Jones

Many Americans have been hanging onto their hope for little too long while trying to avoid filing for bankruptcy. Recently, we reelected the same president that seemed to have no financial experience and a way to turn the economy around. Many good hard working unemployed Americans have been kicking the can down the road too long and many were hoping for a change in the White House to shake up the economy and make things better. The bad news is, everyone knows that didn't happen. Now instead of sugar coating this economy, people need a reality check and they need to take care of business before it's too late. Over the recent years, the people have been hanging on to what the media keeps telling them that things are getting better. That's a partial truth, they are getting better for the very wealthy. It seems that the middle class is going to be extinct in the next few years and a thing of the past. After this election, many companies announced large layoffs for 2013 and for those that believe things were turning around, surprise it's not going to happen.

Some people have burned through their 401K or IRA to keep things afloat, because they knew that job was just around the corner. It's good to be hopeful, but it's also good to be realistic. You can't go through life wearing rose-colored glasses thinking everything is wonderful. Successful Americans know when to dive in and when to pull the plug. Big corporations and the very wealthy have no problem filing for bankruptcy to wipe out back debt from taxes or a bad investment. Currently, many corporations have had to file bankruptcy because they could no longer afford to pay lucrative employee contracts. When they file bankruptcy, they will let the bankruptcy judge assess the situation and force their unions into negotiating. When they do it, it's smart business, when a consumer does it they are failure. It's funny how it's the same thing but the credit industry does a good job fooling consumers into believing it's different.

For someone that's buried under a mountain of debt, their home is on the verge of foreclosure and they're still hoping that things will get better, it's foolish for them not to file bankruptcy and take the real thing. There becomes a point in time when it becomes foolish to continue kicking the can down the road and spending everything one has to pay creditors that most likely will end up on a bankruptcy discharge. Many people think they're doing the right thing by holding off, but in most cases they will regret spending all that money that would be wiped out in the bankruptcy filing. The government keeps telling everyone that we need to borrow and spend our way out of debt. This is the craziest thing I've ever heard and from the way it looks the country is headed for bankruptcy also. When a person makes a decision to file bankruptcy, the only thing they ever feel bad about is not doing it sooner. The light clicks on and they realize all the money they wasted trying to avoid filing for bankruptcy.

The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in a filing for bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Eligbility in Bankruptcy

By Richard Feinberg

Bankruptcy is a powerful debt relief tool. While the idea may seem scary, there isn't much to be afraid of in filing. The key is in having a basic understanding of the process so you know what to expect. Throughout the course of your case there are specific guidelines you must follow, the first hurdle to overcome is qualifying for bankruptcy.

While many people assume that bankruptcy is open to everyone, this can be a misleading statement. There are some exclusions for who can file, which debts are eligible and which type of bankruptcy you may file.

Determining Eligibility

The biggest qualification factor comes in filing for Chapter 7. The laws regarding a Chapter 7 case are more restrictive, meaning that not everyone will be eligible to file under this bankruptcy chapter. In order to qualify for Chapter 7 you must pass a means test, which evaluates your income, assets and debts against the standard for your state. Passing the means test for eligibility for Chapter 7 requires that your financial situation score equal to or less than the median income level of your state of residence. If your score exceeds the median income level of your state you may not be eligible for Chapter 7, but may be able to file for Chapter 13.

In general, eligibility for Chapter 13 is pretty easy. Most debtors who apply for Chapter 13 will be qualified and able to pursue debt relief through this path. The main determining factor that could disqualify you from a Chapter 13 case is your total debt level. If your unsecured debts exceed $336,900 or secured debts exceed $1,010,650, you may not be eligible for Chapter 13.

Further, either Chapter 7 or Chapter 13 bankruptcies could be denied if you have filed within the last few years or have been involved in a prior case of bankruptcy fraud. The rule for filing Chapter 7 is that you must wait at least 8 years from a prior Chapter 7 case or 6 years from a prior Chapter 13 discharge. For filing Chapter 13, you must wait at least 4 years from a prior Chapter 7 discharge or 2 years from a prior Chapter 13.

Qualifying Debts

Contrary to popular belief, not all debts are eligible for bankruptcy protection. In many cases, tax debts are not eligible for a discharge in bankruptcy. In order to have tax debt discharged, they must be income tax debts that are at least three years old and have a return on file with the IRS. Student loan debts are also rarely eligible for bankruptcy protection, but have been allowed in Chapter 13 in extreme cases. Back due child support, alimony and criminal restitution payments are also typically ineligible for bankruptcy.

The P.R. Smith Law Group aims to help local residents resolve their debt issues and achieve a financially healthy future. They provide high quality legal representation that helps lower monthly debt payments, stop wage garnishment,prevent foreclosures and repossessions, and stop calls from creditors. P.R. Smith bankruptcy lawyers in Tampa have many years of experience in all aspects of Chapter 7 and Chapter 13.