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Archive for December, 2010|Monthly archive page

Mortgage Refiance Program: Is HAMP Helping?

In Uncategorized on December 23, 2010 at 12:04 pm

HAMP is the government program for helping struggling homeowners. It provides a way to reduce montly mortgage payments. Unfortunately, permanently modified home loans are defaulting at a rate of 21% per year. That’s a huge number. Predictions are that the percentage of defaults will continue to grow.

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Why Bankruptcy?

In Uncategorized on December 14, 2010 at 2:28 pm

Its my experience that loss of income leads more people to file bankruptcy than any other reason. Folks think that they are in good economic shape if they can handle their monthly payments. That plan works most of the time. But if they experience a loss in income, it can make it impossible to keep the bills current.

The income loss can coome from loss of employment, cut backs to overtime, divorce, or downsizing, for example. The results are the same regardless of the cause. Many creditors can be unwilling to negotiate reduced payments to help those who are struggling with payments. So people are forced into bankruptcy due to unexpected circumstances.

Medical Debts On The Rise

In Uncategorized on December 9, 2010 at 10:26 am

I came across some interesting statistics recently. According to a recent study in the American Journal of Medicine:

62% of all bankruptcies have a medical cause
Most medical debtors were well-educated and middle class; 3 out of 4 had health insurance
The share of bankruptcies attributable to medical problems rose by 50% between 2001 and 2007
My own expreience with my clients bears this out. Medical debt continues to rise, even for those with insurance. Medical insurance is a fig leaf for many people, covering only a small part of their medical debts. Fortunately, bankruptcy can help you eliminate medical debt once and for all.

Older Americans Bankruptcy Filings On The Rise

In Uncategorized on December 2, 2010 at 10:19 am

The elderly are filing more bankruptcies than ever before. Twice as many as they did 15 years ago. My experience with older clients is that their cost of living keeps increasing. The live on fixed incomes and can’t keep up with expenses. They don’t want to turn to family for help. So they end up using credit cards to make ends meet. Eventually, they can’t keep up with credit payments. When things get out of hand, they seek my help.

The problems the elderly face are not much different than those faced by working people. They confront the same rising expenses as every one else. But its more difficult for them to increase their income. Bankruptcy is a way for them to eliminate the debts they can no longer afford to pay.