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Related Bankruptcy ArticlesU.S. Economy: Consumer Confidence, House Prices SlideJune 24, 2008 Confidence among Americans dropped to the lowest level in 16 years and house prices fell the most on record, raising the risk that consumers will cut back on purchases after spending their tax rebates. Click here to read the full article. Nearly Half of Wall St. Bank Profits Are GoneJune 16, 2008 Only a year ago, Wall Street reveled in an era of superlatives: record deals, record profit, record pay. But a mere 12 months later, nearly half of the profits that major banks reaped during that age of riches have vanished. Click here to read the full article. FORECLOSURE ACTIVITY INCREASES 7 PERCENT IN MAYJune 13, 2008 IRVINE, Calif. – June 13, 2008 – RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its May 2008 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 261,255 properties during the month, a 7 percent increase from the previous month and a 48 percent increase from May 2007. The report also shows one in every 483 U.S. households received a foreclosure filing during the month, the highest monthly foreclosure rate since RealtyTrac began issuing the report in January 2005. Click here to read the full article. U.S. BUSINESS LIQUIDATIONS INCREASE AMID TOUGH CREDIT ENVIRONMENTMay 13, 2008 Unable to obtain financing amid the worst credit crunch in at least a decade, a growing number of U.S. companies are abandoning hope of restructuring and simply selling off their assets, Dow Jones Daily Bankruptcy Review reported yesterday. The list includes Sharper Image Corp., RedEnvelope Inc., Leiner Health Products Inc. and Aloha Airlines Inc., all of which filed for bankruptcy this year and quickly decided that their best option was to sell their businesses. In 2007, the number of businesses initiating liquidation proceedings increased by more than 50 percent, totaling 18,751, according to the Administrative Office of the U.S. Courts. About 5,700 businesses sought chapter 11 protection to reorganize, an increase of nearly 24 percent. Until a year ago, financing was abundantly available even for unstable companies, enabling them to put off handling their financial or operational weaknesses. “Companies are now in a tough situation: They can’t refinance their debt and they’re stuck with lenders that don’t necessarily want to play ball with a company in a restructuring,” said Bill Lenhart, a partner and national director of BDO Consulting’s business restructuring practice. Experts warn that proceeds of rushed sales may not be enough to repay secured creditors, let alone unsecured creditors. U.S. April Business Bankruptcy Filings Increase 49%May 6, 2008 Business bankruptcy filings in the U.S. increased 49 percent in April from a year earlier, the biggest gain so far in 2008, as the slowing economy prompted more companies to shut down. Click here to read the full article. City Manager Urges Vallejo To File For BankruptcyMay 3, 2008 VALLEJO - Vallejo's city manager is advising the City Council to declare bankruptcy next week to deal with a worsening budget crisis. City Manager Joseph Tanner made the recommendation Friday after weeks of negotiations with the police and fire unions failed to produce a deal that would solve the city's chronic fiscal problems. Vallejo faces a projected $16 million budget shortfall in its next fiscal year and will have no money in reserve. The City Council is expected to vote Tuesday on whether to file for Chapter 9 bankruptcy protection before its fiscal year ends June 30. If the city of 120,000 declares bankruptcy, it would be the largest California city to do so. High Fuel Costs Threaten Bankruptcy for TruckersMay 2, 2008 A couple hundred truckers, after driving their rigs in a horn-honking circuit around Washington, D.C., last week marched on the Capitol with pleas for Congress to halt oil commodity speculators, open more U.S. fields for petroleum drilling, and even cap the price of fuel. A deluge of rain had drenched their rally on the lawn, but the reality inside the domed building, it turns out, was far more dampening to their cause. Click here to read the full article. APRIL CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 48 PERCENT OVER PREVIOUS YEARMay 2, 2008 U.S. consumer bankruptcy filings increased 47.7 percent nationwide in April from the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The overall April consumer filing total of 92,291 also represented a 7.1 percent increase from the 86,165 filings in March. Chapter 13 filings constituted 31.14 percent of all consumer cases in April, a slight decrease from March. “The sharp spike in consumer bankruptcies reflects the growing financial stress faced by American families, saddled with household debt and mortgage woes,” said ABI Executive Director Samuel J. Gerdano. “We expect consumer bankruptcies to top 1 million new cases this year". Foreclosure Rates Up 112 Percent In First Quarter 2008April 29, 2008 Foreclosure rates in the first three months of 2008 were over twice what they were in the first quarter 2007, a report from RealtyTrac Inc. revealed Tuesday. Click here to read the full article. New Home Sales Fall SteeplyApril 24, 2008 WASHINGTON (Reuters) - New single-family U.S. home sales fell by an unexpectedly steep 8.5 percent in March and the median sales prices versus a year ago dropped by the largest amount since 1970, a government report on Thursday showed. Click here to read the full article. March Foreclosures Rose 57% Year over YearApril 16, 2008 RealtyTrac’s March 2008 U.S. Foreclosure Market Report shows foreclosure filings –default notices, auction sale notices and bank repossessions – were reported on 234,685 properties nationwide during the month, a 5% increase from February and rising 57% from March 2007. One in every 538 U.S. households received a foreclosure filing during the month. Click here to read the full article. Report: US Bankruptcy Filings Jumped 38 Percent Last Year as Consumers Struggled With DebtApril 16, 2008 WASHINGTON: Bankruptcy filings jumped 38 percent last year compared with 2006, as many consumers struggled with higher mortgage payments and other debt loads, a nonprofit group said Tuesday. Click here to read the full article. Regional Banks Rise as No Ugly Surprises AriseApril 15, 2008 NEW YORK (MarketWatch) -- Several of the nation's major regional banks, from the Deep South through the Midwest, saw their shares rally Tuesday, bid higher on better-than-expected earnings and, for several, a boost from selling shares in credit-card company Visa Inc. Click here to read the full article. Senate Passing Housing Stimulus BillApril 10, 2008 The Senate today passed a housing stimulus package that would provide $4 billion so cities can purchase and rehabilitate foreclosed properties and approximately $13 billion in tax breaks to spur additional home sales and help homebuilders, CongressDaily reported. The measure, which passed 84-12, represented a compromise between Democrats who advocated for a robust measure to address the slumping housing market and Republicans who fear a large government bailout. The package also includes language that would overhaul the Federal Housing Administration’s mortgage insurance program by permanently increasing its loan limit to $550,000 and slightly bumping up its down-payment requirement to 3.5 percent. The final bill included a manager’s amendment that would provide an additional $50 million for housing counseling – for an overall total of $150 million – and $30 million to the Neighborhood Reinvestment Corp. for legal assistance for at-risk homeowners. It also would provide additional safeguards for FHA reverse mortgages used by seniors. Thought the White House has expressed opposition to some provisions in the bill, President Bush will not threaten a veto of the overall measure, according to Senate Majority Leader Harry Reid (D-Nev.). Exit of College Lenders Sets Off Scramble To Fill BreachApril 10, 2008 Nearly 50 student lenders, including some of the industry's biggest names, have stopped issuing federally guaranteed loans in recent weeks because of paralysis in the credit markets, confronting students with higher borrowing costs just as they are starting to apply for financial assistance for the coming school year. Click here to read the full article. The Bank-Loan HaircutApril 10, 2008 Banks, taking advantage of slightly improving debt markets, are shedding some of the risky loans and securities that have caused them so much trouble in recent months -- even if that means taking a big "haircut" on the price. Click here to read the full article. The Education Resources Institute (TERI) Files for Chapter 11 Bankruptcy ProtectionApril 7, 2008 BOSTON, Apr 07, 2008 (BUSINESS WIRE) -- The Education Resources Institute ("TERI"), the oldest and largest non-profit guarantor of private education loans in the country, announced today that it filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Massachusetts. Click here to read the full article. Job Loss Record BrokenA record was broken on the job front last Friday as the Labor Department reported a much worse than expected loss of 80,000 jobs in March - the greatest jobs loss reported in five years. In addition, revisions to both January and February's Jobs Report delivered an additional loss of 67,000 jobs - that's on top of the previously reported loss of 85,000 jobs for that two-month period. And...the story might be even a bit gloomier than it already appears. The Labor Department uses a lot of averaging to help it come up with its numbers more quickly, but this practice can skew the current picture significantly. Think of it this way - and because it's now baseball season, here's a Baseball analogy - let's say that mid-way through the season, a red-hot hitter with a batting average of 340 declines into a bad slump for several weeks. While he now can't even hit a basketball thrown underhand to him, his average - while lower to 300 - is still very strong due to his previous hot performance. So someone looking at just the statistics may think that this batter is still absolutely terrific, but he is really someone the fans are booing as he approaches the plate. This is not very different from current numbers being reported by the Labor Department - previous averaging is likely causing an understating of the ACTUAL number of job losses...which somewhat masks how b ad the job market really is. This bleak Jobs Report greatly boosts the odds of not only a first-quarter recession, but perhaps a worse economic downturn than many economists fear. More Consumers Are Behind on Their LoansApril 5, 2008 More Americans have fallen behind on consumer loans than at any time in nearly 16 years, as credit problems once concentrated in mortgages have spread into other forms of debt, according to the American Bankers Association. Click here to read the full article. Fear of ForeclosureMarch 25, 2008 Now that he’s sold his 18-foot boat and his gun, Travis Munnerlyn says he has nothing left to peddle to raise money for the thousands of dollars he’s behind in mortgage payments. Click here to read the full article. 2007 Nationwide Foreclosures Set RecordsMarch 23, 2008 More than one of every 20 home mortgages was delinquent during the last three months of 2007, the highest level in 23 years, according to a report March 6 by the Mortgage Bankers Association. The group's National Delinquency Survey also found that the rate of foreclosures and the percent of loans in the process of foreclosure reached record levels during the period. Click here to read the full article. Bank of America May Face $6.5 Bln Loan Loss: AnalystMarch 23, 2008 NEW YORK (Reuters) - Bank of America Corp (BAC.N), the largest U.S. retail bank, may set aside a record $6.5 billion in the first quarter to cover possible future loan losses, including in its mortgage and home equity portfolios, according to a banking analyst. Click here to read the full article. Complaints Rising About How Companies Are Trying To Collect DebtsMarch 23, 2008 One business is going strong in this flagging economy: debt collection. And with a growing number of collectors chasing down debtors, complaints are also rising about how debts are being collected. Click here to read the full article. Repos Rise As Car-Loan Industry Feels PinchMarch 20, 2008 Tanya Englert's blue 2001 Jeep Grand Cherokee was repossessed in December after she had made payments to own it for the previous 3 1/2 years. Click here to read the full article. Home Foreclosures Hit Record HighMarch 20, 2008 WASHINGTON (AP) -- Home foreclosures soared to an all-time high in the final three months of 2007 and probably will keep rising, evidence of homeowners' suffering and the economic danger from the meltdown. Click here to read the full article. Fed Cuts Key Interest Rate by 3/4 of a PointMarch 18, 2008 WASHINGTON — The Federal Reserve reduced short-term interest rates for the sixth time in six months on Tuesday, capping an extraordinary series of measures it has taken to stabilize financial markets. The cut was smaller than investors had been expecting, though, and exposed some signs of a split among policy makers. Click here to read the full article. End of Cheap Credit Hits Homes, BusinessesMarch 18, 2008 Mounting turmoil in credit markets could realign the finances of households and businesses, as banks scramble to bolster their balance sheets and jettison risky customers. .Click here to read the full article. U.S. Mulls Next Steps in CrisisMarch 18, 2008 As jittery investors digested Washington's dramatic steps Sunday to broker a bailout of Bear Stearns Cos. and offer emergency credit to Wall Street firms, the possible outlines of a broader response to the U.S. financial crisis began taking shape. Click here to read the full article. Why The Fed's Rate Cuts Won't Help YouMarch 18, 2008 The Federal Reserve today continued its attempt to get out in front of the worst financial crisis to hit the world banking system in five decades by slashing short-term interest rates by three-quarters of a percentage point, to 2.25%, the lowest level since 2004. Click here to read the full article. Wall Street Journal NEWS ALERTMarch 18, 2008 The Federal Open Market Committee voted 8-2 to cut the fed funds rate from 3% to 2.25%, its lowest level since December 2004, and signaled more reductions are likely, unloading heavy artillery in its effort to keep the credit crunch from triggering a prolonged recession. The rate cut, though extremely aggressive by any historical measure, was likely to disappoint many on Wall Street who thought a full percentage point was needed. The Fed's statement said: "Recent information indicates that the outlook for economic activity has weakened further. Financial markets remain under considerable stress, and the tightening of the credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters." February Consumer Bankruptcy Filings Increase 15 PercentMarch, 4 2008 U.S. consumer bankruptcy filings increased more than 15.2 percent nationwide in February over the previous month, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). Overall consumer filings totaled 76,120 in February, up from the 66,050 consumer filings recorded in January. The figure was also up 37.3 percent from February 2007. Chapter 13 filings constituted 36.4 percent of all consumer cases in February, down slightly from last month. “February's bankruptcy spike, the highest single month since the 2005 law changes forecasts the start of more to come for the balance of 2008,” ABI Executive Director Samuel J. Gerdano. Millions of Americans Could Ditch HomesFebruary 29, 2008 NEW YORK (Reuters) - Millions of U.S. homeowners who bought homes with sinking value are set to abandon the properties and cut their losses on bad investments, a leading housing market economist said on Tuesday. Click here to read the full article. Bernanke Signals Rate Cuts On Concern About EconomyFebruary 28, 2008 Federal Reserve Chairman Ben S. Bernanke came to Capitol Hill yesterday during a swirl of new evidence that the economy is getting weaker and inflation is on the rise. But his message was the same as it has been since the beginning of the year: His foremost concern is the slumping economy, and more interest rate cuts could well be on the way. Click here to read the full article. Freddie Mac Loss Swells as Mortgage Crisis DeepensFebruary 28, 2008 NEW YORK (Reuters) - Freddie Mac (FRE.N: Quote, Profile, Research), the second-biggest provider of U.S. residential mortgage funding, on Thursday said its fourth-quarter loss widened to a record $2.5 billion as the housing crisis worsened. Click here to read the full article. A Lender Halts U.S.-Backed Student LoansFebruary 28, 2008 The Pennsylvania Higher Education Assistance Agency, one of the nation’s largest student loan operations, announced Wednesday that it would suspend making federal-guaranteed loans starting early next month. Click here to read the full article. January Foreclosures up 57 Percent in Year: ReportFebruar 26, 2008 NEW YORK (Reuters) - U.S. home foreclosures for January increased 57 percent from a year earlier, but the pace at least temporarily subsided in response to private and government efforts to help homeowners, RealtyTrac said. Click here to read the full article. Home Sales Give Some ReliefFebruary 26, 2008 Sales of existing homes in the U.S. fell slightly in January, offering a bit of relief from the huge declines of recent months, but analysts said prices must fall further to help clear the oversupply of houses on the market. Click here to read the full article. Lenders cut off the home-equity tapFebruary 25, 2008 For more than a decade, banks encouraged homeowners to tap their equity for everything from paying off credit cards to covering college tuition. Click here to read the full article. Charge-offs, Delinquencies on Mortgages, Cards Rise in Q4February 20, 2008 Residential real estate loans had a charge-off rate of 0.44% during the fourth quarter of 2007, up from 0.27% in the third quarter and nearly quadruple the 0.12% rate in the fourth quarter of 2006, the Federal Reserve Board reports. Click here to read the full article. Fed Lowers Economic ForecastFebruary 20, 2008 WASHINGTON — The Federal Reserve on Wednesday lowered its projection for economic growth this year, citing damage from the double blows of a housing slump and credit crunch. It said it also expects higher unemployment and inflation. Click here to read the full article. Home Prices in Steepest Quarterly DropFebruary 14, 2008 NEW YORK (CNNMoney.com) -- Home prices continued their plunge during the last three months of 2007, setting a real estate trade group's record for the biggest-ever quarterly drop. Click here to read the full article. The Mortgage Forgiveness Debt Relief Act of 2007 – Public Law No. 110-142February 8, 2008 On December 20, 2007 the President signed into law H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007. This new law amends the Internal Revenue Code of 1986 to exclude discharges of indebtedness on qualified principal residences from gross income, providing some relief with respect to homeowners affected by the mortgage crisis. The recent unrest in the housing market has prompted concern over the tax consequences associated with discharges of indebtedness in connection with restructuring a home mortgage or a foreclosure. The law is designed to address these concerns. Rep. Charles Rangel (D-NY) introduced the bill on September 25, 2007 with 25 cosponsors. The House of Representatives passed it on October 4, with 386 votes in favor and 27 against and nine representatives not present or voting. The Senate passed it on December 14 by unanimous consent. The exclusion applies to amounts discharged prior to January 1, 2010 and incurred to acquire a principal residence. There is a $2 million limit on such exclusion, and there is a corollary reduction to the basis of the principal residence. It does not allow an exclusion related to services performed for the lender or any other factor that is not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Further, it extends the tax deduction for mortgage insurance premiums through 2010. When signing the bill, President Bush stated: I’m pleased to sign a bill that will help homeowners who are struggling with rising mortgage payments. The Mortgage Forgiveness Debt Relief Act of 2007 will protect families from higher taxes when they refinance their homes. It will help hardworking Americans take steps to avoid foreclosure during a period of uncertainty in the housing market. To view his complete statement, please click here. To view the White House’s fact sheet and press release, please click here. To view the new public law in its entirety, please click here. HOUSE VOTES DOWN ATTEMPT TO REPEAL PART OF 2005 STUDENT LOAN LAWFebruary 7, 2008 The House of Representatives today voted down an amendment to H.R. 4137 (the “College Opportunity and Affordability Act of 2007”) that would have allowed borrowers who graduated at least five years ago to discharge their private student loans for reasons other than undue hardship. The amendment by Rep. Danny Davis (D-Ill.) looked to repeal the nondischargeability provisions added as part of BAPCPA. Under the amendment, a non-government student loan would have become eligible for discharge without a need to meet the “substantial hardship” test after the passage of 5 years from the date the debt first became due (extended for any time period during which payment was deferred). Private loans are growing as a share of total student debt due to the rising cost of college tuition and the caps on government-backed or direct student loans. BAPCPA brought the treatment of private student loans in bankruptcy in line with such government loans, which have long been nondischargeable except for the hardship provision. Banks argued that the Davis amendment would raise borrowing costs and reduce access to loans. Housing Crisis Casts a Cloud Over Sun BeltFebruary 5, 2008 PHOENIX -- When residents of Maricopa, Ariz., south of Phoenix, vote in the presidential primaries Tuesday, it will be against a backdrop of vacant storefronts and sprawling, terra-cotta-roofed subdivisions that are studded with for-sale signs as far as the eye can see. Click here to read the full article. New Century Files Ch 11 Liquidation PlanFebruary 4, 208 PHILADELPHIA (AP) -- New Century Financial Corp. and its creditors have filed a bare-bones Chapter 11 plan that does not say how the company plans to pay creditors who have filed $35 billion in claims against it. Click here to read the full article. Fed Survey Finds Banks Tightening CreditFebruary 4, 2008 A survey by the Federal Reserve shows banks are tightening credit standards on a variety of loans, including mortgages, and are expecting a continued worsening of economic conditions for 2008. Click here to read the full article. January Consumer Bankruptcy Filings Increase 30 Percent over Previous YearFebruary 4, 2008 February 4, 2008, Alexandria, Va.— U.S. consumer bankruptcy filings increased more than 30 percent nationwide in January from the same period a year ago, according to the American Bankruptcy Institute (ABI) relying on data from the National Bankruptcy Research Center (NBKRC). While the consumer filings for January increased from the previous year, the data showed that the overall January consumer filing totals were flat from December. Chapter 13 filings constituted 40.05 percent of all consumer cases in January, a slight increase over December. “With over one million more subprime adjustable-rate mortgages due to reset during 2008, the payment shock for many households could lead to higher bankruptcies this year,” said ABI Executive Director Samuel J. Gerdano. The overall consumer filing total for the 2007 calendar year (Jan. 1 – Dec. 31, 2007) reached 801,840, nearly a 40 percent increase from the 573,203 filings recorded during the similar period in 2006. Payrolls Drop for First Time in Four YearsFebruary 1, 2008 WASHINGTON (Dow Jones)--U.S. employment unexpectedly tumbled last month for the first time in more than four years, fueling worries that the U.S. economy which already limped into 2008 might soften further or even slip into recession in coming months. Click here to read the full article. Weekly Jobless Claims SurgeJanuary 31, 2008 WASHINGTON (Reuters) - The number of workers filing new claims for jobless aid jumped by a much larger-than-expected 69,000 last week to the highest in over two years, government data on Thursday showed, but the numbers were likely skewed by the timing of a public holiday. Click here to read the full article. Recent News From: The Insolvency Law Committee (State Bar of California)Under current law, Section 1322(b)(2) of the Bankruptcy Code prohibits modification, through a Chapter 13 plan, of a claim that is secured by real property that is the debtor's primary residence. On December 12, 2008, the House Judiciary Committee approved , HR 3609, which would allow borrowers under certain subprime and other specified residential real property mortgages to substantially modify the terms of their loans through a Chapter 13 bankruptcy plan. HR 3609 would eliminate the prohibition in Section 1322(b)(2) only with respect to residential real property mortgages that : (i) are "subprime" mortgages (generally defined as mortgages with an annual percentage rate of more than 3% above the yield of U.S. Treasury securities of comparable maturity, or more than 5% above the comparable U.S. Treasury yield in the case of subordinate mortgages) and other "nontraditional" loans (generally defined as negatively amortizing mortgages or loans with interest-only payments, but excluding reverse mortgages and home equity lines of credit), (ii) are the subject of a notice that a foreclosure may be commenced, (iii) were first incurred from January 1, 2000 to the date of enactment of the legislation; and (iv) debtors seek to modify as otherwise permitted in Chapter 13 bankruptcy cases filed within seven years after the enactment of the legislation. Such mortgages could be modified in the following ways through a Chapter 13 plan: (1) reducing the amount of the debt to the value of the property; (2) waiving otherwise applicable early payment or prepayment penalties; (3) prohibiting, reducing or delaying adjustments to the interest rate of an adjustable rate loan; (4) extending the maturity until the later of the remaining term or 30 years after the filing of the bankruptcy case; and (5) requiring the accrual of post-petition interest at a fixed rate equal to the Federal Reserve’s conventional mortgage rate plus a "reasonable risk premium." HR 3609 would also change a number of related provisions under Chapter 13 of the Bankruptcy Code, including adding new Section 1322(c) to provide that while a Chapter 13 case is pending, no post-bankruptcy fees, costs, or charges may be added to a debt that is secured by the debtor’s principal residence unless such amounts are contractually authorized, are permitted under applicable non-bankruptcy law, are reasonable, and the secured creditor gives timely notice thereof to both the debtor and the Chapter 13 bankruptcy trustee. The bill has now been sent to the full House for consideration. Change in Bankruptcy Laws Pondered Amid Home Mortgage MeltdownWASHINGTON | After being hooked with ill-advised subprime loans on their homes, many thousands of Americans could end up gaffed in bankruptcy courts next year. Click here to read the full article. CONSUMER BANKRUPTCY FILINGS UP NEARLY 40 PERCENT IN 2007January 4, 2008 Consumer bankruptcy filings increased nearly 40% in 2007, compared with 2006, reports the American Bankruptcy Institute (ABI), citing data from the National Bankruptcy Research Center. The data showed that the overall consumer filing total for calendar year 2007 reached 801,840, vs. 573,203 filings recorded during 2006. “The spike in consumer bankruptcies during 2007 presages even higher filings this year, as the heavy consumer debt load is made worse by the home mortgage crisis,” predicts ABI Executive Director Samuel J. Gerdano. However, there was a 7.5% decrease in filings between November and December, to 66,389 bankruptcies from 71,799 filings. Chapter 13 filings constituted about 38% of all consumer cases in December, down slightly from November. Defaults on U.S. Insured Mortgages at Record HighJanuary 1, 2008 NEW YORK (Reuters) - Defaults on privately insured U.S. mortgages rose 34.7 percent in November to the highest level on record, reflecting the inability of a growing number of homeowners to keep current on their loan payments. Click here for the full article. Unpaid Credit Cards Bedevil AmericansDecember 26, 2007 SAN FRANCISCO (AP) - Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come. Click here to read the full article. November Foreclosures Up 68% from Last YearDecember 19, 2007 RealtyTrac’s November 2007 U.S. Foreclosure Market Report shows a total of 201,950 foreclosure filings (default notices, auction sale notices and bank repossessions) during November, down 10% from October but up 68% from November 2006. Click here to read the full article. Housing forecast to stifle 2008 manufacturingDecember 20, 2007 SAN FRANCISCO (MarketWatch) -- The housing collapse will continue to roil the U.S. manufacturing sector through next year before the rebound begins in 2009, according to a report released Thursday from the Manufacturers Alliance/MAPI. Click here to read the full article. FDIC Press ReleaseDecember 11, 2007 Federal Deposit Insurance Corporation Chairman Sheila C. Bair today made the following statement at a press conference announcing an industry led plan to help certain subprime homeowners with unaffordable reset payments avoid foreclosure: "While I have not had an opportunity to review the details of the agreement reached today, I understand that it fulfills the principles that we have advocated to prevent unnecessary foreclosures. Most importantly, as I understand the agreement, it is a commitment by the industry to implement a stream-lined process to extend the starter rates on subprime ARMs for 5 years or longer for subprime borrowers who have been current on their loans, but can't refinance or make the higher payments after reset." "This is an important initial step and I commend Secretary Paulson for his advocacy on behalf of systematic loan modifications. I applaud Secretary Paulson's vision in recognizing that we are in a virtually unprecedented credit environment and that difficult choices have to be made. In particular, I want to thank the President for his personal interest and support for this initiative." "Homeowners benefit by extending their fixed starter rate for a minimum of five years. In many cases, it will make sense to extend the modification for a longer period and that is allowed by today's agreement. Investors benefit by receiving a steady stream of income rather than incurring the greater losses from foreclosing on a home. Communities and neighborhoods benefit by allowing people to maintain stakes and a vested interest in the areas where they live." "Accountability also is critical. The plan includes an effective system to measure the progress in making loan modifications." "I understand that this agreement will continue to be enhanced and refined as we obtain more information about the pace and structure of loan modifications. I look forward to seeing these reports and the level of fast track modifications under this agreement." "The bottom line is that consumers who are making their payments on time will be able to afford to keep their homes. If these homeowners do not have the ability to refinance or make their higher payments after resets, then they will qualify for a loan modification. The FDIC is committed to finding solutions that help homeowners continue to live the American Dream." The related text of the “Statement of Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation on Accelerating Loan Modifications, Improving Foreclosure Prevention and Enhancing Enforcement before the Financial Services Committee; U.S. House Of Representatives; 2128 Rayburn House Office Building December 6, 2007” can be found at its website at: http://www.fdic.gov/news/news/speeches/chairman/spdec0607.html. NACBA Testifies in Favor of Mortgage "Stripping"December 5, 2007 NACBA (National Association of Consumer Bankruptcy Attorneys) President Henry Sommer is testifying today before the Senate Judiciary Committee in support of S. 2136, the "Helping Families Save Their Homes Act,? introduced earlier this year by Senator Richard Durbin (D, IL). As we have reported on previously, NACBA has played a key role in advising Senator Durbin's staff on the substance of the bill, which would amend the bankruptcy laws to allow for the modification of a home mortgage in Chapter 13. NACBA has been joined in its efforts to help families save their homes from foreclosure by the National Consumer Law Center, the Consumer Federation of America and the Center for Responsible Lending. A number of other organizations, including AARP, the Leadership Conference on Civil Rights, AFL CIO and the National Women's Law Center, also are supporting the legislation. Other witnesses at today's hearing include economist Mark Zandi, a Chicago homeowner who would be helped by the legislation, Illinois Bankruptcy Judg e Jacqueline Cox, Alabama Bankruptcy Judge Thomas Bennett, ABI Resident Scholar Mark Scarberry, and Drexel University professor Joseph Mason. The hearing begins at 2:30 p.m. ET. Testimony from the hearing will be posted about the time the hearing starts and may be found at http://judiciary.senate.gov/hearing.cfm?id=3046. It is not clear if there will be a Webcast of the hearing; if there is, you can find it by going to http://judiciary.senate.gov/. If there is no Committee Web cast, C-SPAN provides audiocast. To find the C-SPAN link, go to http://www.capitolhearings.org/, scroll down to the hearing and click on the room number. Maureen Thompson, NACBA Legislative Director maureent@hastingsgroup.com Free First Consult to Tell You if We Can Help You Phone Us at 1-310-559-9224; or from Los Angeles and Ventura Counties Only Phone Toll Free 1-866-BKY-ATTY Los Angeles Bankruptcy Lawyer Disclaimer: The information on los angeles bankruptcy law, filing bankruptcy in Los Angeles, Chapter 7 bankruptcy, personal bankruptcy, Chapter 13 bankruptcy, Chapter 11 bankruptcy, credit card bankruptcy, and other bankruptcy legal information presented at this site does not constitute legal advice and does not create any attorney client relationship or contract of any kind with the Bankruptcy Law Firm, PC or Los Angeles bankruptcy lawyer Kathleen P. March, Esq. The Bankruptcy Law Firm, PC uses a written contract for each bankrkuptcy client and will only be representing you in your Los Angeles bankruptcy matter if you and the law firm sign a written legal representation contract and you pay Bankruptcy law firm for the bankruptcy legal services it performs for you. Information on this bankruptcy los angeles law firm web site is provided for informational and educational purposes only. You should never make legal hiring decisions solely upon web pages, brochures, advertising or other promotional materials. Please contact a Los Angeles bankruptcy lawyer at The Bankruptcy Law Firm, PC, for your free first consult to find out whether our Los Angeles Bankruptcy Attorneys can represent you. This web site might be characterized as an advertisement under California's State Bar Rules and is not intended to solicit clients for matters outside of the State of California. Always seek the advice of an attorney from your own jurisdiction before relying on information from this site or any web site. Kathleen P. March - Los Angeles Bankruptcy Lawyer, and Former Bankruptcy Judge - claims the copyright (2002-2008) to the content of all pages on www.bkylawfirm.com. All rights reserved. |