The North Carolina Bankruptcy Information Blog

It would make sense that recent signs of recovering economy would be great news for jobless Americans. But as a report on public polling explains, even though the overall economic picture may be brightening, many job seekers are still very much in the midst of a stark economic haze.

According to a report from The Huffington Post’s Janell Ross, “Economic data suggests the long-stagnant economy may finally be gaining momentum, but Americans aren’t seeing a turnaround yet, according to a pair of newly released polls. The economy — and more specifically the nation’s persistent jobs crisis — remains the number one concern for most Americans, according to a CNN/ORC International poll released Friday.…

“This matter is serious and will cause problems at the job.”

Believe it or not this is exactly what collection representatives from California-based debt collection company, Rincon Debt Management, were asked to tell unassuming Americans each time they attempted to collect on back debts.

But based on a complaint filed by the Federal Trade Commission, often the debtor they were trying to pressure didn’t owe any money at all. In many cases either they had already paid back their debts or never had them to begin with. Unfortunately, some of these people were so afraid of the debt collector calls, they sent Rincon money anyway just to make these types of aggressive calls stop coming.…

If you’re like many beleaguered and over-budgeted Americans, you grew weary and wary of credit card debt during the throes of the Great Recession.

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) was supposed to address the fact that you’ve been “paying” with plastic both literally and metaphorically ways for years, shielding average Americans from unexpected and massive changes to their credit card terms—terms that had previously led directly to financial hardship for an overwhelming amount of our nation’s families.

Fast Forward to 2011 when new legislation is actually worsening many of the gains from the Credit CARD Act, by tightening federal regulations on debit card usage and causing banks to push their credit card offers to supplement lost debit income.…

When home prices plunged, the stock market crashed, and nationwide hiring froze, many desperate debtors were left destitute, depressed and feeling without hope—all at the height of our recent Great Recession. But fast forward to nearly three years since the recession officially ended, and today many of the most mentally hard-hit Americans are those facing long-term unemployment.

According to researchers at the Centers for Disease Control and Prevention in Atlanta, about 9 percent of Americans were defined as clinically depressed in data released last year by the compared to an estimated 6.6 percent in data collected in 2001 and 2002. In the process, many of these depressed men and women have also seen their home foreclosed, vehicles repossessed, relationships fail, and addictive behaviors prevail.…

Need signs that credit card companies are getting more aggressive with their credit card tactics and tricks? Well, there’s 346 million reasons from one particular credit card purveyor, Citigroup.

Based on a new report from The Wall Street Journal, in the third quarter alone, the bank mailed more than 346 million credit card offers to unwitting customers. Keep in mind, that’s more than the approximately 308 million people in the U.S, according to the Census Bureau.

Despite this high volume of consumer credit offers, according to the financial experts at Bloomberg, revolving credit usage, which includes credit cards, dropped the most in six months in July.…

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.…

When markets crashed, home prices fell, and unemployment rates rose, many desperate debtors were left destitute, depressed and feeling without hope in the height of our recent Great Recession. And as you might imagine, and as researchers at the Centers for Disease Control and Prevention confirmed last week, some of these desperate Americans even took their own lives—in greater number—during the tough economic times of the 2000s.

These troubling stats were confirmed in the CDC’s latest study, published online in the American Journal of Public Health. According to Reuters, the new study was the first of its kind to evaluate suicide trends by age and business cycles, revealing that working Americans, aged 25 to 64, are significantly more likely to commit suicide when facing the feeling of insurmountable economic struggles.…

By now we know that “paying” with plastic is both a literal and metaphorical proposition, especially as a good number of bankruptcy bound individuals—even in an era of home-made foreclosure filings and mounting medical bills—find credit card debt to blame for their insolvency.

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act), signed into law by President Obama on May 22, 2009, was meant to change much of that. Signaling a new era of consumer protection, the so-called CARD Act was intended to shield average Americans from unexpected and massive changes to their credit card terms—terms that had previously led directly to financial hardship for an overwhelming amount of our nation’s families.…

If you’re like many average Americans, you were dealt a hefty budgetary blow during the recent Recession. And, as a result, you may have responded by trying to spend less, save more and reduce debts where you could—including cuts in your consumer credit card use.

If so, you’re not alone.

According to a recent report from Credit.com, since the inception of the economic crisis, more and more men and women are resisting the urge to spend, climbing aboard the equivalent of the “Good Ship Spendthrift” in order to create a sea of savings on a new course to a better financial future.…

In most discussions of bankruptcy, there are few mentions of the rising costs of motherhood/parenthood, especially considering the current economic state of affairs, whereby families are sometimes forced to choose between clothing, feeding and educating a child and their responsibilities of paying mortgages, car notes and consumer debt.

 As a result, it’s as good a time as any during this especially tough economic era to take a closer look at how mothers, guardians, and caregivers are crunching the numbers when it comes to giving their child the very best, and what that means when, at the same time, that parent is forced to seek the protections of a personal bankruptcy. For example, what might spending for a school expenditures and activities and/or a college education mean when it comes time to file and face bankruptcy’s two basic evaluations?…

The Obama Administration’s Credit CARD Act, meant to tighten the reins on credit card industry treatment of card customers—and thereby assist most average Americans— has slowly (but imperceivably?) begun changing our credit card rates, rewards, the appearance of our statements, and even the number of offers we receive.

But despite these significant changes in credit card law to this point, many Americans are still struggling to pay their bills on time, every time. Some can’t pay because they’ve taken a pay cut; in other cases, they’ve been laid off completely; in most they’ve simply lived beyond their means so long that the credit card interest is working far from in their best interest.…

It may come as no surprise that long-term unemployment has a greater effect on layoff victims compared with shorter spells of joblessness. What you may not know is that this impact has far-reaching implications for family, friends and feelings about oneself.

According to a new Pew Research Center survey, more than four in ten (44 $) of people out of work for six months or longer said unemployment had led to “major changes” in their lives, compared with 31 percent of people jobless for less than six months. Forty-three percent of long-term unemployed said they lost contact with close friends, and 38 percent said they lost some self-respect.…

One thing you may already know about most court proceedings, is that parties usually have the option to represent themselves without the aid of an attorney. This is called appearing ‘Pro Se’, which, in Latin means “for oneself”. In a bankruptcy proceeding, when money is tight, the thought of saving money by cutting out attorneys and their fees can be pretty tempting. But there are many reasons this is a bad idea.

Bankruptcy can be complicated and bankruptcy judges are a picky bunch. They expect that the preparation of the voluntary petition, schedules, or other documents will be done accurately and on time.…

While some experts are calling 2010 the year of the economic recovery, bankruptcy filings are in true recession-era form, rising in recent months, and, according many analysts, increasing with no end in sight. In early June, the American Bankruptcy Institute (ABI) validated these fears, reporting that personal bankruptcy filings for the month of May 2010 increased compared with a year ago (May 2009).

According to the ABI findings, in May 2010, 136,142 personal bankruptcy cases were filed, a nine percent increase from May 2009, when 124,838 cases were filed. Based on figures collected so far in 2010, most sources estimate that personal bankruptcy filings this year will total about 1.6 million, a 10 percent increase over the 1.44 million filed in 2009, and taking the numbers to, or above, where they were prior to bankruptcy reforms in 2005.…

When you’re deep in debt, it may seem like your creditors are an ever-present part of your life…showing up where and when you least expect them. The calls and letters alone can leave your reeling, and feeling, used and abused.

As we’ve already seen in the first two parts of the four-part series, “Creating a Barrier to Bill Collectors,” unsecured creditors, the ones at the bottom of the financial food chain, are more likely to be the ones contacting you via phone, sending you letters, and generally harassing you for cash, any cash, where and when they can. We’ve already examined how many unsecured debt collecting strategies are simply veiled threats and how to actually use Federal law to stop the harassment altogether; and now it’s time to address the limits of when and where creditors can contact you.…

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, in the weeks following this tax season’s deadline, important financial news abounds for many cash-strapped citizens and the struggling states they live in.

Looking for good news amid the bad? Take a gander at the latest economic outlook and what it might mean for you.

Our Great Recession Continues (Or Not)
Last week, the Business Cycle Dating Committee of the National Bureau of Economic Research, a group responsible for determining official start and end dates for recessions based on analysis of financial indicators, announced that it cannot yet officially declare an end to the recession.…

In these tough economic times, many families are facing unprecedented financial challenges. This country’s recent Great Recession has dealt, and continues to deal, a significant blow to the budgets of Americans—leaving millions in debt, underwater in their mortgages, perpetually jobless and looking for any means necessary to get back on a financially-healthy track. As a result of this economy, many need loans and are unable to get them without the financial support of a co-signor.

In part one of the series, “The Responsibility of Co-signors in Default and Bankruptcy,” we’ll look at why it’s better to be cautious than to co-sign.…

Successfully coming out of bankruptcy is a financial rebirth. As you move on from your financial setbacks (and you will), you will be better prepared to build a healthy fiscal future. Part of that, or better stated, a huge part of that, will involve how you make decisions regarding money. It would be understandable, for example, to simply save everything in a conservative money market (savings) account or maybe drop a small bit of your monthly income into a 401k. Both options are solid and should be considered part of a comprehensive investment strategy.

So if bankruptcy has changed the way you handle money and it’s time for you to start moving forward building responsible, long-term wealth, consider the following investment tips:

1.…

We sure do like to shop in America.

Despite the rise of Internet browsing, there are still few environments more attractive to a modern-day capitalist than a shopping mall during the holidays. Even in down-times, like the last two major holiday periods, just about any mall appears packed with people as diverse as the brand names on the bags that dangle from their wrists. Despite two years of serious recession, it’s still hard to find a place to park.

So, as we try figure out who exactly is being pained by the Great Recession when we visit a mall (we know who is), the bigger question that looms is about on how on earth can the owner of one of these Great Pyramids of commerce can possibly go bankrupt?…

In this era of extreme homeowner hardship, mounting medical bills, and surging unemployment, most people use their credit cards—for better or for worse—just to get by. But, as everyone knows, there’s a price to pay for playing with plastic, including, over recent years, soaring interest rates, diminishing card disclosures, and a general lack of lender and credit card company transparency.

Well, now a hint of positive consumer news is just on the horizon. In addition to a few provisions enacted in August 2009 signifying a new era of consumer protection law, as of February 22, 2010, even more sweeping changes are set to occur in an effort to right several of the most basic wrongs credit card companies have increasingly imposed upon card holders.…