The North Carolina Bankruptcy Information Blog

Foreclosures? Theeeey’re Baaaaack.

After several months of falling default rates, foreclosures were up again in August 2011, rising by about 7 percent compared to the month before. In fact, according to new numbers from the real estate firm RealtyTrac, some of the biggest increases were in the nation’s wealthier places: suburbs, industrial hubs, as well as small town service worker centers, already hard-hit by the great recession.

According to a new report from PBS Newshour, that’s bad news to anyone hoping for a speedy economic recovery. “The bumps represent different sets of problems, both disheartening. First, the increases in the wealthy communities suggest that people in those counties still may be leery of spending money in the months ahead – something they need to do if the economy is to turn around.…

Some are calling a recent drop in consumer bankruptcies during the first half of 2011 a sure sign that the tides may finally be turning for the U.S. economy, as these new figures from the American Bankruptcy Institute Americans fuel the idea that American may be more financially stable in 2011 than they were at the same time last year.

According to the new data, consumer bankruptcy filings across the country totaled 709,303 during the first six months of 2011, a full eight percent less than the 770,117 filed during the same period in 2010. What’s more, using data provided by the National Bankruptcy Research Center, the ABI reported that there were 11,768 consumer bankruptcy petitions filed in June 2011, a five percent decrease from the number filed in June 2010.…

In this new “rough and tumble” economic era, 117,000 sounds like a lot.

$117,000 dollars. 117,000 shares of stock. 117,000 jobs?

Well, in all but one of those cases, you’d be right. In July, the American economy beat expectations by adding 117,000 new jobs to the current market and dropping the unemployment rate from 9.2 to 9.1%.

But what was truly great about this news of six-digit job growth was that it well eclipsed the paltry figures of positions added only one month earlier in June. Back then, economists had anticipated the June report would show about 120,000 private sector jobs added to the economy — barely enough to keep pace with population growth.…

It’s been two years since experts signaled the end of our recent Great Recession. But based on the most recent job report, it seems like only yesterday. In fact, according to last week’s surprisingly dismal government labor figures for June, a true recovery from the economic downturn of the late 2000s could be a long way off indeed.

A new article from The Huffington Post, in collaboration with Patch.com interprets the data, finding:

“Economists had anticipated the report would show about 120,000 private sector jobs added to the economy in June — barely enough to keep pace with population growth.…

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.…

It may seem strange, the whole prospect of turning a timely tax return into a bankruptcy, but in a nation currently dealing with a healthy debt load, the whole idea that half of Americans get some form or return, comes at a good time for those looking to pay down those debts, or, better yet, find a longer-term solution for their cash-strapped situation.

And so, with tax deadlines just around the corner, and with millions of people just like you expecting returns, if not significant refunds averaging several thousand dollars, some of you may consider using this money for luxury items or a start on a pretty, new car.…

In tough financial times, sometimes it’s hard to see the forest for the trees. But as another global conflict unfolds in the Middle East, and with the United States very much involved, it’s important to understand another war’s potential impact on the national economy, local layoffs and your individual financial future.

At least so says long-time New York Times writer Bob Herbert, in his final column for the paper. Entitled, “Losing Our Way,” the column outlines a host of problems facing average Americans—demolished school budgets, closed libraries, layoffs for teachers and police officers, lower qualities of life—even as resources begin flowing toward a third war theatre in Libya and domestic promise again takes a back seat to foreign policy.…

As countless bankruptcy clients in this country have made clear, seeking the debt dissolution solutions of a personal bankruptcy can help free up finances that help with home mortgage payments—even amid the real estate reckoning of the recent recession—and, as such, aid many households in avoiding the perils of foreclosure.

But now the proof is in the reporting.

In a report released Tuesday, New York Federal Reserve researchers Donald P. Morgan, Benjamin Iverson and Matthew Botsch determined that there is a direct link between the October 2005 change in bankruptcy laws via bankruptcy abuse reforms (or BAR)—a change that made it more difficult for ordinary Americans to eliminate debts in bankruptcy—and approximately 116,000 additional subprime mortgage foreclosures in 2006.…

Amid the lingering national housing crisis, many renters may have felt that they had gotten away relatively unscathed in these tough economic times, avoiding underwater housing prices, high interest mortgage fluctuations, and the fear of foreclosure from lenders eager to toss unwary debtors from their humble (or not so humble) homes.

But in 2011, many renters should be aware of a new worry of their very own in the coming year: tenants who get behind on their housing payments will begin negatively impacting their own credit rating. That’s right. According to Lynnette Khalfani-Cox of WalletPop, Experian, one of a trio of primary credit bureaus, has recently started collecting consumer rental payment information for the purposes of including that very data in its credit reports.…

The nation’s residential real estate market continues to tumble, further complicating life for millions of Americans looking to either buy or sell a home in the near future.

Not only that, but home sales are so tightly wound into our economic system that every ebb and flow tends to create ripples on Wall Street. Financial analysts around the country are doing all they can to instill a sense of calm in the American people about our financial system. Every time they do, more facts about a faltering real estate market come to light, scaring those who currently own and increasing the hesitation in those thinking about buying.…

Following the worst financial downturn since the Depression of the 1930s, men and women of the middle-class have found themselves profoundly affected by an economic meltdown that’s quickly pushed many into poverty. Widening unemployment paired with shrinking government safety nets means one unexpected and unfortunate incident—a sudden layoff, debilitating injury or illness, a missed mortgage payment—can mean a person’s life is instantly transformed from “happy-go-lucky” to the brink of homelessness or worse.

In fact, according to a new article on the state of the shrinking middle class in America, “As foreclosure and unemployment rates have swelled to epidemic proportions in the past two years, the ranks of the American homeless have grown: the number of homeless families rose 4 percent in 2009, and then 9 percent last year, a pair of new reports show.…

Last year will be known for a number of things. Most of us will probably remember it as the year America attempted liftoff from the great recession but failed. That failure was not due to any one thing or person but more the result of a vastly complex economy that few people, even those put in place to do so, truly understand.

The previous 12 months saw 1.5 million Americans exercise the benefits of the United States Bankruptcy Code. With so few jobs available and a home sales market marred by a nasty, ongoing mortgage management and foreclosure scandal, our most popular refuges of financial security were inhabitable.…

While some experts are calling the latter portions of 2010 a new era of economic recovery, bankruptcy filings remain in true recession-era form.  In fact, according to the 2010 Fiscal Year statistics from the Administrative Office of the U.S. Courts, the number of bankruptcies filed between October 1, 2009 and September 30, 2010 increased from 1,402,816 to 1,596,355, marking an increase of 13.8%. And even though Chapter 11 (business and large individual) filings decreased, from 14,745 to 14,191, a 3.8% drop, and business filings overall also went down, from 58,721 last year to 58,322 this year, a 0.7% decrease, non-business or personal filings went up under all other chapters of the Bankruptcy Code, rising from 1,344,095 to 1,538,033, or 14.4%.…

If you’re reading this, odds are you might be suffering through a pretty tough financial time. What may make you feel a bit better about your current economic situation is the firm knowledge that you’re not alone in this global economic meltdown. Specifically, millions of average Americans just like you are facing a shared financial burden as we all struggle to stay afloat in the wake of this country’s recent Great Recession—full of folks facing insurmountable health care costs, foreclosure, job insecurity and losses, and, in some cases, complete and total insolvency.

In this ongoing series, Our Great Recession 2.0, we’ll delve into some of the more unique stories of this decade’s unprecedented economic downturn, sharing the familiar faces and dire places people are going in order to handle our collective financial meltdown head-on.…

If you’re reading this, odds are you may be suffering through  a tough financial time. Yet, what might make you feel a bit better about your current ordeal is the knowledge that you’re not alone. Millions of average Americans just like you are facing a shared financial circumstance as they struggle to stay afloat in the wake of this decade’s Great Recession—facing foreclosure, job insecurity, and, in some cases, insolvency.

In the series, Our Great Recession 2.0, we’ll delve into some of the more unique stories of this decade’s unprecedented economic downturn, allowing you to see familiar faces and dire places people are going in order to handle our collective financial meltdown head-on.…

Could the food industry be the latest bellwether of a better economy and returning consumer confidence? Some industry experts seem to think so.

According to William Neuman’s report in his recent New York Times article, “The Tables Turn,” “Restaurants all over the country are beginning to see signs of a potential recovery after a dismal 2009. Sales at some restaurants have risen in the last few months, and the industry has hired thousands of additional workers.  “There’s no question about this,” said Harry Balzer, chief industry analyst at the NPD Group, a market research firm that tracks sales at 47 restaurant chains with a total of 103,000 outlets.…

While many economists say this decade’s Great Recession ended in the middle of 2009, millions of struggling Americans still working hard to find meaningful employment would definitely disagree…and now, the figures do too.

According to the latest U.S. Bureau of Labor Statistics employment report, more than 40% of the nation’s 14.9 million unemployed workers have been out of a job for at least 27 weeks, with an average member of this beleaguered club having been unemployed for 29.7 weeks. For those keeping count, that’s nearly seven months.

And with each passing month, it becomes more and more clear that finding new jobs isn’t getting any easier, with leading economists speculating that not only is the nearly 10% unemployment rate not likely to fall anytime soon, but also that the actual number of workers seeking full-time jobs is on par to grow.…

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, tax time can  yield a long-term solution for some cash-strapped citizens.

With tax deadlines just a few weeks away, many people just like you are expecting significant refunds, with the average being several thousand dollars. Some of you may consider using this money for major purchases or down payments on a new car. Many more may even want to pay off credit cards and other debts.…

If you’re reading this, odds are you’re considering bankruptcy. As such, you have a lot on your plate. Yet, what might make you feel a bit better about being bankruptcy bound is the knowledge that you’re not alone. Millions of average Americans just like you are facing desperate circumstances as they struggle to stay afloat in the wake of this decade’s Great Recession—facing foreclosure, job insecurity, rising costs and, of course, insolvency.  In the series, Our Great Recession 2.0, we’ll delve into some of the more unique stories of this decade’s unprecedented economic downturn, allowing you to see familiar faces and dire places people are going in order to handle the financial meltdown head-on.…

Very few people set out to open a credit card account intent on not paying off the balance.  Those who do are assumed to be criminals, usually identity thieves or some other sort of con artist.

Credit card debt, and all other forms of long term financial drain that lead good people into the need to file bankruptcy, is very often caused by a setback of some kind, like illness or job loss.  And if recent unemployment predictions are on track, we can expect the bankruptcy rate to continue to climb.

The News & Observer published an Associated Press report about the impact job losses are having across the country.…