MORE BANKRUPTCIES COMING!
By Kurt O'Keefe, Attorney at Law on Oct 22, 2007 in Benefits of Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, Michigan, Your Bankruptcy Attorney & You
Consumers increasingly are falling behind on car loans, credit cards, home equity loans, as well as mortgages.
In the past, increases in these type of defaults have always been followed by increased bankruptcy filings, both Chapter 7 and Chapter 13.
Yesterday’s Financial Times, U. S. view from London, lists some highlights. U. S. banks have increased reserves against losses six billion dollars over the second quarter.
Banks have to set aside funds to cover anticipated losses, that is what reserves are.
Interestingly, a Punk Ziegel analyst is quoted as saying the problems “extend behyond the well-known issues in the real estate markets.”
Not so well known until about 3 months ago, when some of the manure started hitting the fan.
Someone else is quoted as saying what started out as a “sub-prime problem” has expanded.
Hey, I thought the talking heads on CNBC and elsewhere said this was a small problem confined to a small segment of the mortgage market?
Oooooops!
The Greenspan bubble largely pumped up mortgage debt, but not exclusively.
And people may be skipping the vehicle and other loan and credit card payments to try to keep their homes.
Best advice, always know your real financial situation, how much is coming in, and how much you are committed to sending out. When the out exceeds the in, type to get advice about what Chapter 7 or Chapter 13 can do for you.
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