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High Volume Gets Blame In Theft Case (Arizona Daily Star)The sheer volume of mortgages generated at the height of the housing bubble made it difficult to quickly discover acts of fraud and theft committed by employees at Title Security Agency of Arizona, the company's president said Thursday.
A Quick Bankruptcy For G.M.? Not So Fast (New York Times)Any hope of a high-speed bankruptcy by General Motors faces a serious obstacle: a judge â not the Obama administration, not G.M. management and not the companyâs creditors â would reign in court, The New York Timesâs Jonathan D. Glater writes.
Icahn And Oaktree Said To Push For MGM Mirage Bankruptcy (New York Times)Will it be pistols at dawn in Vegas for Carl C. Icahn and Kirk Kerkorian? The activist investor and private equity fund Oaktree Capital Management have amassed hundreds of millions of dollars of MGM Mirage bonds and have told the troubled casino firm it should quickly overhaul its massive debts in bankruptcy, The Wall Street Journal reported, citing people familiar with the matter.
U.S. Foreclosures Up 24 Pct In 1Q (The Newton Kansan)The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break, according to data released Thursday.
GM CEO Says Bankruptcy 'Probable' (Washington Post)General Motors chief executive Fritz Henderson said the automaker still intends to restructure its business outside of bankruptcy, but a filing is still "probable" given all the concessions it must achieve with such a short deadline.
Housing Market Cooling - Comment On This Story (The Sudbury Star)The worldwide recession and nickel industry woes have combined to prick the local housing market bubble. According to the Sudbury Real Estate Board, a total of 350 homes changed hands locally through the Multiple Listings System in the first three months of 2009, down from 636 a year ago.[...]
Las Vegas Braces For Commercial Foreclosures (Las Vegas Sun)A tsunami of commercial real estate foreclosures is on the horizon and is threatening banks and undermining developers who are already struggling with high vacancy rates. Itâs another looming blow for many banks that are sweeping up after the financial wave of the residential real estate bust. Since the first of the year, a growing number of developers of offices, industrial space and retail ...
Yellen Says No End To Recession In Sight (Nasdaq)(RTTNews) - San Francisco Federal Reserve Bank President Janet Yellen says the Fed's monetary policy may have played a role in the U.S. credit boom and the resulting housing price bubble. But he added they were by no means the only factor.
G.M. Hopes To Make Deadline But Is Preparing For Bankruptcy (New York Times)The chief executive of General Motors , Fritz Henderson, said Friday that âit is still feasibleâ for G.M. to meet the administrationâs demands by June 1 without filing for bankruptcy, but he acknowledged that executives were preparing to seek court protection if necessary, The New York Timesâs Nick Bunkley reported.
Foreclosures Continue To Rise In South Florida (Miami Herald)The number of foreclosures in Miami-Dade and Broward continued rising last month, as mounting job losses crippled borrowers' ability to make mortgage payments. Lenders lifted previous foreclosure moratoriums and resumed legal action against delinquent accounts.
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New Bankruptcy Law - Five Essential Things to Know
Charles Essmeier
Last April, Congress passed the Bankruptcy Abuse and Consumer Protection Act, the most sweeping reform of our nation's bankruptcy laws in more than twenty-five years. Proponents of the bill argue that most consumers who file for bankruptcy do so simply because they do not wish to pay their bills. That is an arguable point, as studies show that most bankruptcy filers have suffered illness, injury or job loss. Regardless of the reasons, Congress has made the changes, and millions of Americans will be affected when the new law takes effect on October 15.
Here is a short list of the changes and how consumers will be affected.
<Li>Goodbye, Chapter 7 - Until now, most consumers have been permitted to file under Chapter 7 of the Federal bankruptcy code. Chapter 7 permits the court to wipe away most consumer debt, allowing the debtor to make a fresh start. The new law establishes a "means test." Anyone with income that exceeds the median income for his or her state will have to file under the stricter Chapter 13 instead, which requires a repayment schedule of up to five years.</Li>
<Li>Attorney problems - The more complicated Chapter 13 filings will make it necessary for filers to hire an attorney. Most attorneys who practice bankruptcy law are already reporting dramatically increased business; some are even turning clients away. If you need an attorney, hire one now, as they are soon going to be very busy</Li>
<Li>More attorney problems - The law also leaves lawyers legally responsible for the accuracy of the information filed on their clients' behalf. This has led most lawyers to increase their fees. Some, including those who do bankruptcy work on a pro bono, or free, basis, have decided to forego bankruptcy work altogether. In short, it will soon be more difficult and more expensive to hire an attorney.</Li>
<Li>Mandatory credit counseling - Congress has required that debtors obtain credit counseling from an approved agency within six months of filing for bankruptcy. As of now, this requirement is largely undefined, with rules, regulations, and qualifications for counselors still up in the air. </Li>
<Li>Expect to may more bills - Some obligations, such as student loans or taxes, must be paid in full even after a bankruptcy filing. The new law lengthens the list of debts that cannot be forgiven.</Li>
The new legislation, rightly or wrongly, makes it more difficult, more time consuming and more expensive for a debtor to file for bankruptcy. Consumers who are considering doing so should act now, as the regulations will soon become stricter. Bankruptcy should always be a last resort option, but if you cannot avoid it, you should act quickly.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to establishing credit, debt consolidation and credit counseling. |
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