The North Carolina Bankruptcy Information Blog

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.…

Whether you’re considering bankruptcy or just coming out of it, you may be wondering the best ways to rebuild credit as soon as possible. Obviously, credit cards are one way to rebuild your credit history (and future) more quickly; but most people entering or exiting the bankruptcy process are well aware of the perils of plastic…and how difficult it can be to qualify for a card with a dinged credit past.

Here are a few ways to select a good credit card despite a bad credit history:

(1) Make to a Call to the Potential Creditor
You may not get offers in the mail, so it’s a good idea to “make the first move.” Give banks that appeal to you a call at the 800 number listed on their website in order to address their practices, policies and intentions.…

Becoming a Credit-Savvy Consumer Post-Bankruptcy: Part 2

Becoming better with credit post-bankruptcy can be a daunting task for many clients. You’ve repaid or dissolved your existing debts, and are about to close your bankruptcy case with a new and improved outlook on your financial life. Unfortunately for many in your position, even well-intentioned Americans can return to their debt-full ways, even after the many lessons learned from their bankruptcy filing.

As a result, it’s important to take a first (or now second) look at the best ways to break the cycle of debt, this time for good! Continuing from part one of our series, here are five additional strategies for making the best of your post-bankruptcy life:

(1) It’s Cheaper to Change Your Mind.…

Becoming better with credit post-bankruptcy can be a daunting task for many clients. You’ve repaid or dissolved your existing debts, and are about to close your bankruptcy case with a new and improved outlook on your financial life. Unfortunately for many in your position, even well-intentioned Americans can return to their debt-full ways, even after the many lessons learned from their bankruptcy filing.

As a result, it’s important to take a first (or possibly second) look at the best ways to break the cycle of debt, this time for good! Five sound (but simple) strategies include:

(1) Bank on it.
Banks inevitably issue real credit offers.…

It’s closing in on the end of the first month of 2011, another year into the Great Recession. Of course, things do look “somewhat” better than they did for the last three. However, everything does when enough time passes.

If you filed bankruptcy in 2010, or anytime in the last couple of years, chances are you made a few financial resolutions for the new year. Great. But now you have to stick to them.

In order to help you stay true to your own economic goals, lets’ explore the ways many financial resolutions end up going broke.

First, it is critical that you do not set your expectations too high.…

It is our hope that after a person files and gets back on track, that they do so with an awareness of what led to them contact us. (This goes without saying that many bankruptcies are not at all caused by poor spending choices, but happen as a result of sudden medical emergencies or unexpected financial commitments.)

So we admit to be somewhat nervous by the onset of trends showing credit card use will increase in 2011. Apparently credit card companies are on the marketing attack, having sent over a billion solicitations in the third quarter of 2010. Last year at this time, the number was under 400 million.…

There are few lumps of coal as heavy or black as a delinquent credit card.

When you’re heading out to the outlet center this year, think about the long term impact of your holiday spending.The holiday shopping craze tends to alter our judgment about what make good gifts. Moreover, it makes us think we’re getting great deals on big ticket items when in fact, the most popular gifts become substantially cheaper at other times of the year.

Take for example power tools. Lowes and Home Depot pitch everything from socket sets to arch welders this time of year, aiming squarely at women in search of the perfect gift for their husbands.…

During the early part of the new Millennium, as the economy blossomed and business was booming, “Shopping ‘Til You Drop” was far from a foreign concept. From luxury electronics purchases to cultivating closets full of clothes, Americans made a habit of spending as much as they made as they also spent tons of time in malls, outlets and stores. But according to a recent series about the state of the American consumer from The Associated Press, and as reported by The Huffington Post, those days of unconscious spending seem to be over, even as the economy bounces back, giving way to a more “surgical” approach aimed at spending economy, especially among lower-income consumers.…

It’s after Halloween, so you know what the means don’t you? Of course, it’s time for winter holiday shopping. When you put away that “sexy cop” costume, just reach one box over and grab the house decorations.

So this year’s shopping season should say a lot about the state of our economy. Will it signal an actual comeback, fall short of “analysts’ expectations” or signal that 2011 is going to be another rough one?

Well, if we know one thing from recent shopping metrics, it’s that, at least to some extent, we will be able to attribute a decline in consumer good purchases on that ever-popular present and glaring indication of just how little thought we really put into gift giving … the gift card.…

Okay, it’s time for some motivation.

Coming out of bankruptcy, or at least the feeling of resolution that comes when the cloud of economic despair finally lifts, can do a lot for a person’s psyche and sense of self. Like a new breath after a long-time struggle in financial whitewater, knowing you are free of what has been pulling you under can empower you to try new things, pursue goals and live your dreams. So, in honor of that great feeling, let’s use this post to discuss ten things that you might hear when its time to get back on track toward leading the life you have always wanted.…

It would be inauthentic to blame every instance of bankruptcy on sudden life changes, such as a tragic illness or other life-altering emergency. The truth is, some bankruptcies are preventable.

However, we’re not judging. We know that timing plays a big part.

For example, let’s say one morning that you look at the pile of bills on the counter and say to yourself: “That’s it, I’m changing the way I handle money.” Then, the first thing noticed on your desk at work is a pink slip. That folks, is bad timing. And it explains a lot of personal bankruptcies.

What if you never you had that pile of bills?…

While many people consider it common knowledge, the last-minute fear before deciding to file bankruptcy could end up costing you even more come retirement. Turns out, that as the recession deepens, more people are looking toward their long-term savings for an influx of cash to help stay afloat.

Well, don’t ever be one of those people. Typically, what ends up happening is that you wind up without retirement money and still filing bankruptcy. We’ve seen it happen. And it’s hard to watch.

An article on USAToday.com pointed to figures that show a record number of people in the second quarter of this year used their retirement accounts to help stave off a financial problem.…

Regardless of your current financial situation—from good credit to no credit—there’s no denying that we’re living in a tough housing market. So if you’re considering bankruptcy, you might think that if it’s a challenge to become a homeowner for those in the best financial times, it might be next to impossible to acquire your dream home if you’re currently recovering from a Chapter 7 or 13 bankruptcy filing.

The hard and fast truth is that getting your financial house in order following your bankruptcy, especially in order to qualify for a mortgage loan to get the home you want, is more possible than you think.…

Realizing we are in debt is a lot easier than figuring how it happened. Unless you can pinpoint one central reason, like the loss of a job or long-term medical issue, it can be hard to retrace your steps to financial crisis. Plus, who even wants to? The more important exercise is to figure out how to not let it happen again. And that means determining why you overspend so you can change your habits in your life after bankruptcy.

Countless consumer studies have been done about why we spend. From psychological influences to marketing, music and social pressure, there are far too many things impacting our spending decisions.…

Chapter 13 bankruptcy can be a great way to clear your financial slate, while, at the same time, entitling you to hold on to your precious property even in the most precarious economic situations. To do so, Chapter 13 bankruptcy allows you to construct what is hopefully a realistic financial reorganization plan that allows you to pay back all of your debts over the course of three to five years.

In part one of the series “Creating a Realistic Chapter 13 Repayment Plan,” we discussed how an unrealistic Chapter 13 repayment plan (i.e., one that is poorly designed, doesn’t account for unexpected expenses, and one that doesn’t keep your lawyer in the loop, combined with the debtor’s inability to stay inside a repayment ‘budget’), can lead to Chapter 13 failure.…

Chapter 13 bankruptcy involves the facilitation of a financial reorganization plan that allows you to pay back your expenses over the course of three to five years. As a result, a Chapter 13 bankruptcy also requires that you look ahead three to five years in order to construct a realistic and sensible plan that can work for you.

Unfortunately for many people who are bankruptcy bound, the future is far from unclear. And, just as many circumstances can occur that exacerbate your financial present and force you into bankruptcy, the same unexpected scenarios—from a job loss to a medical emergency—can cause your Chapter 13 reorganization place to fail.…

Bankruptcy Myth #1: You won’t receive credit offers after your bankruptcy.

Don’t be surprised to receive many credit offers following your bankruptcy. Car lenders, mortgage financiers, credit card companies and more, often line up for the chance to provide post-bankruptcy debtors with all types of consumer spending opportunities.

Bankruptcy Myth #2: Taking creditors up on all of their offers is a good thing.

These same lenders and card companies are also coming forward to capitalize on the clean financial slate your bankruptcy provided.  Unfortunately, many of these so-called “helpful” creditors are actually subprime lenders targeting average Americans just like you who are attempting to improve their credit and get back on their financial feet.…

In the last ten years, self-storage centers have infiltrated America faster than a bad singer on YouTube. From basic storage sheds with individual bays to climate-controlled multi-story complexes, we have become a nation obsessed with storage. Heck, you can even invest in a garage condo today.

Now, let’s juxtapose our need for storage with the general financial position of so many American families right now. There is really no more proof of our collective love of useless consumer products than the need to pay $100 month just to store it.

And if it’s not in a storage facility, it’s pushing the car out of the garage.…

It was easy to spend money a few years ago, somewhere around late 2005 and into 2006, when the economy was flying, anyone could get a loan and every house in the zip code was appreciating at eight percent a year.

Those who managed to avoid subprime loans and the desire to keep up with whatever the other side of the cul-de-sac was spending turned out to make it through the recession in decent shape, provided the unemployment crisis didn’t catch up with them.

Truthfully, the degree of financial difficulty at which someone finds themselves is no measure of intelligence or social wherewithal.…

With rising foreclosure rates, escalating health care costs, recent credit card company schemes and unprecedented unemployment, most people would think they’ve seen it all in this unprecedented economic downturn.

But wait, there’s more.

In these tough financial times, scam artists are coming out of the woodwork to prey on the most hard hit by this decade’s Great Recession: persons needing the benefits of, or having already filed for, bankruptcy.

First and foremost, scam artists are in the habit of targeting debtors who are willing to do whatever it takes to avoid bankruptcy.  According to the Center for Responsible Lending, common predators prior to your bankruptcy include even legal payday lenders and debt settlement agencies.…