As the global economy retracts, many Americans are struggling to manage the mounds of household debt accumulated earlier in the decade, during a flourishing expansion when it didn’t seem quite so imposing. Those struggling with debt are the perfect target for a new growth industry — companies that claim they can magically “eliminate” or “reduce” [...]
December 2008
Today, television station WTAE-TV in Pittsburgh, Pennsylvania published an interesting online article about economic resolutions for 2009. They are as follows: Resolution number one might be to start saving now. With all of the uncertainty in the job market, it makes sense to save six months’ worth of salary in case you’re laid off. Second [...]
Today’s Wall Street Journal (December 31, 2008) has a front-page story titled, “Mortgage ‘Cram-Downs’ Loom as Foreclosures Mount.” Discussed is the question of whether the new congress will allow “cram-downs” of residential mortgages in Chapter 13 and 11 cases. A cram-down is where the terms of a mortgage are changed in bankruptcy. The interest rate [...]
My friend and colleague Gene Melchionne and I have both written about the problem of foreclosure pets. It shouldn’t come and any surprise, therefore, to learn that more and more horses are also being left behind in the wake of job loss, income reduction, foreclosure, or other financial distress. [T]he economic downturn has hit the [...]
With many bankruptcy clients, the timing of their bankruptcy filing is of little or no concern. However, there are definitely filing situations where the expression “timing is everything” should be heeded. Over the next several articles I will address ten situations where I would normally recommend that a client wait to file bankruptcy. If a client [...]
What does the term Adverse Action mean? The Fair Debt Collection Practices Act (FDCA) and the Equal Credit Opportunity Act (ECOA) use the same definition for Adverse Action. Adverse Action includes any of the following: The refusal to grant credit in substantially the amount or on substantially the terms requested; Termination of credit or an [...]
