Bankruptcy has many causes. People sometimes encounter financial difficulties because of illnesses, overspending or unemployment. Although many celebrities are relatively well-off, some have been beset by the same financial problems.
Recent reports indicate Nadya Suleman, also known as the "Octomom" after she gave birth to octuplets, owes more than $1 million in debts and has decided to file for Chapter 7 bankruptcy to solve her money woes.
College students have traditionally been prime targets for predatory lenders looking for an easy buck. These young people are often undereducated about financial planning, and they can be lured into credit card agreements. Even though new laws have been established to prevent these predatory practices, a new report suggests that credit card companies are still leading young people down a treacherous financial road that can end in personal bankruptcy.
Adults younger than 21 were slated to receive additional protections from the Credit Card Accountability, Responsibility and Disclosure Act passed by Congress in 2010, but it appears that those benefits have yet to be realized. According to a new academic study, nearly 70 percent of college students younger than 21 have received credit card solicitations in their own name during the past year. An additional 40 percent of students reported seeing their classmates receive gifts in exchange for signing up for credit cards, which is prohibited by the Credit CARD Act. Finally, nearly a third of students said they were allowed to list their student loan money as income on a credit card application.
A new report shows that mixed news is coming from the home foreclosure front. Although foreclosure filings are overall on the decline, more homes are entering the foreclosure process. Maryland is expected to be one of the hardest-hit states as more and more Americans face the threat of home foreclosure.
The total number of monthly foreclosure filings during early 2012 was at its lowest point since 2007, according to RealtyTrac, the group that conducted the study. However, the group found that the number of homes that received a first-time foreclosure action rose again, showing a three-month trend.
A think tank associated with Republican presidential hopeful Newt Gingrich has filed paperwork declaring Chapter 7 bankruptcy, according to reports. The organization, known as the Center for Health Transformation, has offices in Washington, D.C., and two other cities. The group plans to liquidate its assets as soon as possible, according to documents submitted in U.S. Bankruptcy Court.
The group stated that its existing liabilities totaled between $1 million and $10 million, which were reportedly owed to 50 to 90 creditors.
Continue reading Gingrich think tank declares bankruptcy, threatens campaign
Comments: Leave a comment
Student loan debt used to be a practical risk; borrow to obtain an education and pay off the loans after getting a high-paying job. But with the tenuous state of current economic conditions, many graduates are struggling to repay what they owe, which makes the need for debt relief more important for these young adults.
Student loan debt in America amounts to more than $1 trillion, surpassing both credit card and auto loan debt. This heavy burden could fuel another financial panic because of the economy remaining fragile, experts say.
People in Washington, D.C., and elsewhere file for bankruptcy for a number of reasons. They often approach the process unsure of which chapter to file and which debts can be discharged. Asking the right questions ahead of time can make the process easier. Here are a few of the most common questions regarding bankruptcy.
What do the different chapters of bankruptcy mean?
An individual looking to manage personal debt will most likely be filing for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy liquidates assets and discharges debts while Chapter 13 bankruptcy sets up a payment plan that a filer must follow for three to five years in order to pay off all or a portion of their debt.
In a landmark settlement with big banks, the government has released more details about the $25 billion foreclosure abuse settlement plan. While the banks have agreed to no wrongdoing, the government has asserted that it will closely monitor that all parties involved follow the agreement.
Though mortgage fraud was not outright accused, the five major banks involved have been accused of pursuing faulty foreclosures and simultaneously foreclosing on borrowers who were negotiating mortgage modifications. The deal was filed in a Washington, D.C., court and still needs to be approved by a judge.
Filing for Chapter 7 bankruptcy in Washington, D.C., and elsewhere requires many forms. The Statement of Intentions form tells the court what you intend to do with your secured debts, which are car loans, mortgages, times shares, appliance loans and jewelry loans.
If looming vehicle repossession or foreclosure is what prompted you to file for bankruptcy protection, you may be afraid of signing away your assets. The Statement of Intentions form, however, does not create liability. If you state that you wish to keep your home or car, you may still change your mind later.
Grassroots movements are taking up the cause of minority communities being ravaged by mortgage fraud and foreclosure. The movement has slowly been gaining speed across the country over the past decade and really seems to be making a difference in affected neighborhoods. Maybe politicians in Washington, D.C., will finally take notice.
One couple, who has faced foreclosure and bankruptcy, has joined their local Occupy the Hood movement to fight big bank lenders. The couple fell victim to fraud and was force to file for Chapter 13 bankruptcy.
The Federal Trade Commission has shut down another operation for defrauding vulnerable Americans who are saddled with debt. Following the economic hardships of the recession and rise in personal bankruptcy filings, more companies have preyed on consumers who are unsure of their rights. The latest companies to be shut down, American Credit Crunchers and Ebeeze, both run by one man, had defrauded more than $5 million from victims over the past two years.
A U.S. District Court stopped the operation of the companies after a recent request from the FTC. The owner and his companies are charged with violating the FTC Act and the Fair Debt Collection Practices Act.
Bold labels are required.
1115 Massachusetts Ave NW,
Washington, DC 20005
Phone: 202-559-1428
10512 Pohick Court,
Fairfax Station, VA 22039
Phone: 703-550-7030
6926 Seven Locks Road,
Cabin John, MD 20818
Phone: 301-890-4500
Toll-Free: 877-441-4076
Fax: 202-638-5858
© 2012 by Ammerman & Goldberg. All rights reserved. Disclaimer
Privacy Policy | Legal Marketing by FindLaw, a Thomson Reuters business.
