I saw this article today and had to pass it along. It is very true and I couldn't have said it better myself. Is Credit Counseling a Step in the Right Direction? Credit counseling most often involves consolidating outstanding debts as much as possible and then developing a negotiated repayment plan for a reduced payment over time to all of your creditors. Credit counseling is often a first step taken by those who have significant debt due to varying unforeseen circumstances. Each Creditor Will Have Different Requirements Each creditor has a different idea of what should be in the repayment plan and therefore will have different requirements. The catch is that a repayment plan must be approved by all the creditors, which takes time. What you may not know is that credit counselor staff is often working for the major credit card companies, in their best interests not yours. This is because the credit consolidation agencies get a cut of all the funds they recover that are owned to the … [Read more...]
Record Year for Bankruptcy’s So Far
Bankruptcy filings in June declined for both individuals and businesses. Still, bankruptcies so far this year are 9 percent ahead of last year's monthly average, according to data compiled from court records by Automated Access to Court Electronic Records. If the pace continues for the next six months, 2010 will have the most bankruptcies since 2005 when Congress made bankruptcy less available for individuals. Through June, there were about 795,000 bankruptcies of all types in the U.S. The 133,800 filings in June were the second fewest this year at a daily rate. There were over 7,100 commercial filings in June, an 11 percent decline on a daily basis from the average in 2009. Chapter 11 filings were 7 percent fewer than the 2009 monthly average, according to the report from AACER, a service of Oklahoma City-based Jupiter ESources LLC. Nevada, Georgia and Tennessee continue leading the nation in per capital bankruptcies. The states where filings are growing fastest are Hawaii, … [Read more...]
Fixing Credit Report Errors
Why is it that credit reporting companies have so much control over our lives? One false report on your credit report could cost you the ability to buy a house, car or to even obtain a credit card. Is that fair? No way. Is there anything you can do about it? Yes, there is. It's not easy, and, frankly, it's a pain in the neck. However, you can fix mistakes on your credit report if you need to, and here's how. The first thing you need to do is order a copy of your credit report. The three major national credit bureaus are: Equifax, PO Box 740241, Atlanta, GA 30374-0241; (800) 685-1111. Experian, (formerly TRW), PO Box 2002, Allen, TX 75013; (888) 397-3742. Trans Union, PO Box 1000, Chester, PA 19022; (800) 916-8800. When ordering a copy by mail, make state your name, current address, addresses where you have lived for the last five years, your social security number, date of birth and a include copy of your driver’s license. You are entitled to a free copy of … [Read more...]
Bankruptcy Statistics
News Flash! November 8, 2010 —Bankruptcy cases filed in federal courts for fiscal year 2010, the 12-month period ending September 30, totaled 1,596,355, up 13.8 percent over total FY 2009 bankruptcy filings of 1,402,816, according to statistics released today by the Administrative Office of the U.S. Courts. While non-business bankruptcy filings continued to rise in FY 2010, business filings dropped slightly for the first time since 2006. The bankruptcies reported today are for October 1, 2009 through September 30, 2010. Business and Non-Business Filings Non-business filings totaled 1,538,033, up 14.4 percent from the 1,344,095 non-business bankruptcy filings in September 2009. This is the highest number of non-business filings for a fiscal year since FY 2005, immediately prior to the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act in October 2006. Business filings totaled 58,322, down 0.7 percent from the 58,721 business filings in the 12-month period … [Read more...]
Credit After Bankruptcy
I came across this article today on the internet and thought it was very interesting. Often times potential or actual bankruptcy client's ask me what affect bankruptcy will have on their credit. My answer is always the same. That is, it will stay on your credit report for 7 to 10 years and if you already have bad credit, your credit score will likely improve. Most client's don't believe me, and frankly I don't blame them. How can filing bankruptcy actually IMPROVE your credit? Well, read this article below and you will have a good idea. CREDIT AFTER BANKRUPTCY Recently, an associate professor of law at the University of Iowa, Katherine Porter wrote that "credit solicitations of recent bankruptcy debtors is rampant." She studied data collected by the Consumer Bankruptcy Project and found that nearly every debtor receives credit offers shortly after bankruptcy. Most offers are for credit cards, however, some are for mortgages and car loans. It is interesting because this … [Read more...]
Chapter 7 and Chapter 13 Bankruptcy Statistics
November 08, 2010 October Filings Hold Steady 2007 2008 2009 % 2010 % Jan 55,200 70,300 89,000 27% 102,600 15% Feb 58,800 79,500 102,000 28% 117,800 15% March 73,100 90,400 131,000 45% 159,200 22% April 67,800 93,200 128,700 38% 146,200 14% May 69,900 89,700 120,400 34% 133,500 11% June 67,300 89,900 124,800 39% 133,850 7% July 69,100 96,400 130,500 35% 134,600 3% Aug 77,100 94,300 120,000 27% 135,600 13% Sept 67,500 96,200 125,500 30% 134,000 7% Oct 81,200 108,900 130,200 20% 129,700 0% Nov 74,200 91,400 115,500 26% Dec 65,900 95,900 117,000 22% 827,100 1,096,100 1,434,600 31% 1,327,050 Thanks to the Bankruptcy Internet Project Call us today at (410) 766-4044 or (301) 587-8900 for a free consultation regarding Chapter 7 and … [Read more...]
bankruptcy statistics for october, 2010
National Bankruptcy Research Center October 2010 Bankruptcy Filings Report The raw numbers suggest that bankruptcy filings in October rose slightly from the previous month (to 132,000 from 130,000). But that trivial increase suggests a substantial break in the upward trend of bankruptcy filings we have observed since passage of the bankruptcy reform statute in 2005. Thus, as a seasonal matter, October filings typically are the highest filings of the year, about ten percent higher than September filings, so on a seasonally adjusted basis, filings in October were actually seven percent lower than filings in September. More notably, filings in October of this year were three percent lower than filings last October: that represents the first year-on-year decrease in bankruptcy filings since 2006. Year-to-date filings for 2010 are still ten percent higher than last year’s, but for once the rate of filings has fallen. Nationwide, filings this year to date amount to about 5600 filings … [Read more...]
Motherhood and Bankruptcy
I saw this today and thought it was a really informative article and wanted to pas it on to any readers of the Maryland Bankruptcy Center blog: MOTHERHOOD AND BANKRUPTCY In most discussions of bankruptcy, there are few mentions of the rising costs of motherhood/parenthood, especially considering the current economic state of affairs, whereby families are sometimes forced to choose between clothing, feeding and educating a child and their responsibilities of paying mortgages, car notes and consumer debt. As a result, it’s as good a time as any during this especially tough economic era to take a closer look at how mothers, guardians, and caregivers are crunching the numbers when it comes to giving their child the very best, and what that means when, at the same time, that parent is forced to seek the protections of a personal bankruptcy. For example, what might spending for a school expenditures and activities and/or a college education mean when it comes time to file and face bankruptcy’s … [Read more...]
Top Five Reasons People File Bankruptcy
When you are experiencing a financial crisis you may feel like you are the only one in that situation. The reality is that many people are feeling the current financial crunch for one reason or another. So whether you live in Maryland or any other part of the country, you are not alone! The following top five reasons seem to be the most common reasons why many people are filing for bankruptcy: 1. Wiping the slate clean. The goal of a discharge is to reduce debt to give you a fresh start. 2. Stop foreclosure or sale of your home. If your home is in foreclosure a Chapter 13 bankruptcy will stop the foreclosure any time prior to the sale. 3. Prevent repossession of your car or other property. If the bankruptcy is filed quickly enough it can effectively force the creditor to return your car or other personal property. 4. Stop aggressive collection efforts by creditors. Often, creditors will call the home of a debtor at all hours and behave in an abusive manner. Bankruptcy will help … [Read more...]
Information About Consumer Bankruptcy
The American Bankruptcy Institute is an incredible organization which helps educate bankruptcy professionals and consumers with regard to current bankruptcy news and information. It's contributors are some of the most well-educated bankruptcy professionals in the country. Although I have been a Maryland bankruptcy lawyer for almost 20 years, I learn something new every day. I am thankful to the people who post such great information for all of us to see. An especially interesting article that I think you might enjoy is as follows: Should I file for bankruptcy?Whether to file for bankruptcy is a very personal decision. Some people find it helpful to file a bankruptcy case when they cannot pay their bills and they do not anticipate having the ability to pay their bills in the near future. Often, people file because their financial situation is causing them emotional distress or depression, or because they would like to free themselves of debt now, if legally allowed, and have their … [Read more...]
