The North Carolina Bankruptcy Information Blog

Three years back, Iceland’s entire financial system collapsed and despite being unable to bail itself out of its economic troubles on its own, the country is already recovering quickly and strongly.

As a result, there are valuable lessons anyone considering bankruptcy here at home (or even other countries) can learn from the this spate of Icelandic insolvency and what the Nordic nation ultimately did to solve it and emerge stronger than ever.

Iceland’s total financial collapse in 2008 culminated in all the banks and savings institutions — even insurance companies — going bankrupt in a day.

Neverthless, three years on, the President, Olafur Ragnar Grimmsen tells Marketplace that Iceland is doing better than ever.…

In the midst of an economic meltdown, it can be tough to track your finances and start saving for a rainy day. But in the years since the recent Great Recession ended, many people are indeed trying to get their budgets back on a positive track, staging a financial comeback after years of dire economic setbacks.

In fact, according to our friends at WalletPop, even if you “messed up your finances in your 20s, then made matters worse in your 30s,” and are now “ready to act your age, get serious about the business of fixing your credit and start writing your financial comeback story,” it’s possible to “bounce back and take control of your financial future.”

“How,” you may ask?…

In the two years since the end of America’s recent Great Recession, there have been plenty of ups and downs in economic forecasts, fiscal prognostications, and financial facts and figures. Polls have also been a big part of taking the country’s financial pulse, as average Americans are often asked, “how are you feeling now, post-recession?”

Some experts will tell you that as recently as last fall—with news that businesses were back to hiring, some saying the housing market was no longer in a tailspin, and the economy looking less bleak than before—men and women throughout the country were beginning to feel better about their personal financial prospects.…

This week, Citigroup will launch a brand, spanking new credit card that purportedly carries with a trifecta of post-recessionary perks: no late fees, no penalty rates and a single interest rate for purchases, balance transfers and cash advances.

As reported by The Associated Press, Citi’s revamped “Simplicity card” sells itself as exactly that: it will be marketed to those who are “juggling busy schedules” and “want a credit card with simple terms.” In fact, Jud Linville, CEO of Citi Cards told the AP, “It lets them not have to worry that they’re going to be late on a payment. It provides some flexibility.”

But amid Citi’s claims that their new card is somehow different than the plastic that has placed so many an American budget in financial jeopardy over the past several years, there are many reasons to think twice before sending in an application for their Simplicity.…

Few average Americans are likely celebrating the recent two-year anniversary of the period when economists and other experts say the Great Recession ended. This is especially true given that the subsequent recovery has been called “the weakest and most lopsided of any since the 1930s.”

But what’s the real reason so many are feeling less-than-jovial about the couple of years since the end of the downturn?  For one, the new economy is hardly spreading the wealth.

According to a new report by the Associated Press, “After previous recessions, people in all income groups tended to benefit. This time, ordinary Americans are struggling with job insecurity, too much debt and pay raises that haven’t kept up with prices at the grocery store and gas station.…

When you think of “predatory lenders,” your first unfortunate thoughts may turn to non-banking entities—often unseemly, less-than-legitimate-looking establishments lit up with neon signs offering “quick check cashing” and “fast money orders.

But in the recent years since the recession ended, well-known banks are getting into the payday lending game, shirking a landmark financial law meant to prevent another financial crisis, and making fast payday cash a major part of the mainstream financial exchange with unwary borrowers.

According to a new article from The Huffington Post, the process is just as simple as with brock and mortar check cashing stores and the result can be just painful for average Americans facing tough financial times.…

Everything old is new again with news that private investment firms are now lending to subprime borrowers again.

In fact, based on a Wall Street Journal report, subprime borrowers—home buyers whose credit scores do not meet the standards of banks—who had been largely shut out of the lending market in the years since the financial crisis, are now finding a much more liberal environment for getting a home loan. Apparently, as part of the deal, private investors are more willing to accept alternative forms of documentation as proof of income, opening up more average Americans to the hard-to-come-by benefits—and heavy financial burdens—of home ownership.…

With the rebound of the credit card industry in full swing for 2011, more and more credit cards are being made available to consumers—often via aggressive tactics—than in quite some time. And amid these plentiful offers for plastic there come enticing rewards of all types, with a litany of merits for the cautious consumer and just as many drawbacks for average Americans attempting to get out (and stay out) of debt.

Along with this trend comes a study from the Federal Reserve Bank of Chicago, revealing that holders of cashback reward cards, in particular, are more willing to assume and carry higher debt loads.…

Despite the continuing economic malaise, American spending habits appear to be alive and well, overleveraging already beleaguered budgets hit hard by the housing crisis, high unemployment and rising unsecured debt loads. In fact, despite lessons learned from the recent recession, Americans continue to spend about 15% of their household incomes on luxury items defined by “wants” instead of “needs.”

So where (and on what) are we wasting our money this time?

According to an article from 24/7 Wall St., reviewing our latest spending habits and the changes in spending patterns over the past two decades,  “The ten categories of unnecessary purchase can be balanced against the ability of Americans to save money or pay off debts.…

It seems like only yesterday that being termed “one in a million” was a good thing.

But that was apparently before the economic crisis.

Today, there are over one million Americans (1.4 million to be exact) who have been out of work for 99 weeks or longer. Deemed as the “very long-term unemployed,” this overflowing group of unfortunate unemployed workers tends to skew more mature, with little discrimination between those with (or without) a college education.

In fact, according to an article by The Huffington Post, “The CRS report shows that very long-term unemployment is more likely to afflict older workers than younger ones.…

In these tough economic times, some households have had to put basic needs above plans for higher education, turning to personal savings and college funds to fight off foreclosure, meet mounting medical costs, and in some cases, even keep the lights on and food in the fridge. In the wake of the recent Recession, many commentators have begun to question the cost-benefit of analysis of spending for higher education versus the realities of the jobs (and salaries) earned as a result.

But according to a new Gallup/Sallie Mae study, despite tightening budgets and high unemployment, most students and their families are not cutting back on education.…

In these rough and tumble economic times, some households have been forced to put low-level, basic needs above long-term plans for higher education, turning to personal savings and what they previously considered to be college funds to fight off home foreclosure, meet mounting medical costs, and in some cases, even keep the lights on and food in the fridge.

Even more striking is that during the recent Great Recession and in its recent wake, many commentators have begun to question the very cost-benefit of analysis of spending for higher education versus the realities of the jobs (and salaries) earned as a result.…

These summer months are shaping up (again) to be tough times for recent college graduates. This latest round of job seekers continues to face high unemployment and mounting debt. So what happens when these poor economic conditions coincide with payment deadlines for sometimes astronomical educational loans? One word: defaults. In the end, this feeling of financial helplessness leaves many recent grads reeling, and rightfully so, in an economic climate may mean they will never be as successful or financially secure as their parents.

According to a recent article in The Huffington Post, chronicling graduates’ search for better jobs (albeit without hope for a better future), this recent post-recessionary phenomenon may signify a broader trend.  “Historically, college graduates weather periods of economic recession better than their less-credentialed counterparts.…

As temperatures heat up all across the country this season, so too are concerns about inflation, with rock bottom housing prices, and a weak labor market, adding fuel to the summertime fire. The result? Tanking consumer confidence in May, at least according to a private sector report released this week, and fears of something more economically-sinister a’ brewin.’

Based on a Reuters reading of the new economic data, “The Conference Board, an industry group, said its index of consumer attitudes fell to 60.8 from a revised 66.0 in April. The reading was below economists’ forecasts for 66.5. April was originally reported as 65.4.…

While many Americans learned a harsh lesson during the economic recession—turning away from reckless spending in an attempt to increase much-needed savings and avoid high-interest consumer debts—auto lenders still did well during the downturn, as demand for cars remained high and auto loans became one of the very few types of consumer debts that grew even as consumer confidence dwindled.

In this auto-lending boom, more and more subprime lenders are popping up on the scene, willing to take advantage of a credit-ravaged consumer’s need for a new or used car.

Take for example Ally Financial, Inc. As Reuters is reporting, the largest American auto lender is making bank on many an unwary consumer’s automobile buys.…

Two years after experts found the recession to have ended, real estate prices continue to fall in major cities all across the country according to a new report—in some cases to their lowest level since the housing bubble burst in 2006—signifying a true recovery has yet to materialize in the beleaguered housing market.

According to a report from Arthur Delaney for The Huffington Post, this latest data “confirms that the housing market’s ‘double dip’ is at hand, and many economists say prices will continue to decline through the rest of this year. Home values dropped from February to March in 18 of the 20 cities tracked by the Standard & Poor’s/Case-Shiller index, which is widely considered the leading gauge of the housing market’s health.…

You may have heard the phrase “debt ceiling” being bandied about in the media recently. But few people outside of Washington D.C.’s Beltway, and in the current Congressional fight over raising it, truly understand what the term has to do with the proverbial “price of beans.” But financial experts warn that this unending political battle over how the country handles our national debt limit, could have lasting effects on average American pocketbooks.

First and foremost, the debt ceiling itself relates to the limit to how much money our federal government can borrow to pay for services. If  (and when) America needs to borrow more than the set limit, Congress must approve the hike.…

After a recent bankruptcy you may be feeling the need to build your credit “credibility.” While it’s always important to understand the perils of plastic—the reason many average Americans choose bankruptcy in the first place—it’s also important for a better financial future to show creditors that you can successfully manage that type of debt.

Even qualifying for an initial credit limit of $1000 is a good place to start for a newly-discharged debtor, assuming a few conditions are met, including:

(1) You are Pre-Approved for a Credit Card
Qualifying for the a credit card is a little like going to the prom…it always feels better the more you are asked.…

We talk a lot about the impact of the recent economic downturn on seniors: how hard is to retire, or even remain employed, as debt rises and dreams of post-career, golden years spent without worry fade as quickly as home prices.

But what about the millions of Americans who have yet to embark on careers, now facing a rude awakening that the jobs that used to pad their wallets and prepare them for college and the workforce, are now disappearing or filled by fellow workers twice their age? An underreported impact of our lingering economic malaise and changing job market is the impact on teenage workers.…

We know what you’re thinking.

Another stressful tax season has officially come and gone, and you’re either expecting a well-deserved refund or you owe an obligatory amount to the Internal Revenue Service.

Regardless, we understand you’d rather not think about (or, at least read about) anything regarding taxes, tax time, or the financial implications of this taxing period. But, trust us, it’s worth taking a gander at the following, as the end of tax season means the beginning of many a tax scam that might cost you more money (and time) than any IRS tab.

The Internal Revenue Service has now issued a statement warning average Americans just like you about how to spot and solve identity theft issues that stem from your recent tax filing.…