The North Carolina Bankruptcy Information Blog

A couple of months ago we reported that North Carolina one of ten states with the largest employment gaps. That meant that as of this summer, the state of North Carolina would have needed to generate nearly 500,00 additional jobs in order to keep up with growing population numbers and old and new workers flooding the Tar Heel market in future months and years.

With these disturbing jobless figures in mind, it should therefore come as double-dose of economic reality that the Tar Heel State now also ranks among another not-so-distinguished list: One of the 10 states where the most unemployed could lose benefits.…

We’ve already heard a lot here about “The 99ers,” the long-term unemployed who have not only became a new byproduct of an unprecedented string of Congressional extensions to unemployment benefits, but who have also long-since exhausted the maximum 99 weeks of unemployment benefits available to them in many states in the wake of the recent economic downturn. The group, inauspiciously dubbed “The 99ers” for the remarkable amount of time they went without a job and with benefits, have come to represent the collective face (and plight) of many jobless Americans from across the country, forced to hang on every tea leaf, smoke signal, and whisper from the halls of Congress for signs of a new job plan, a new stimulus package, and more help for the recession-weary.…

About a year ago, we reported that North Carolina was at the “top of the heap,” when it came to being home to one of the ten best cities to find jobs. Despite the fact that millions of struggling Americans were still working hard to find employment, economists were heartened about prospects for growth in 2012 as industries increasingly reported better profits and adding new jobs. As a result, back then, cities like Durham, N.C., which had rebounded with more jobs post-recession based on gains in the tech industries, looked like beacons of hope for a new economic recovery.

But now we’re forced to fast-forward to 2011, and Friday’s news that the United States failed to add any jobs in August.…

While millions of struggling Americans are considering all kinds of smart moves to make ends meet—taking on extra work, cutting corners in their household budgets, or even considering the benefits of bankruptcy—others may be considering literal moves from state to state as some prove to outweigh others in what they can offer on the job front.

Are you one of the many still looking for work? Well you’ve come to the right place. Or, at least, the place where you can find the best “places” to find work, as Gallup has published its latest Job Creation Index, providing a state-by-state comparison of which states predominately hired and fired in 2010.…

Many long-term unemployed have exhausted the maximum 99 weeks of unemployment benefits available. The group,  known as The 99ers is a byproduct of an unprecedented number of Congressional extensions to unemployment benefits in a lingering economic malaise.

Do you consider yourself a 99er? Out of work for nearly two years or more? Can’t seem to find anyone who will listen, let alone help?

Well, as The Huffington Post reported, there’s strength in numbers. Unfortunately there aren’t any. “One obstacle to helping 99ers is a lack of basic data. How many people can’t find work after nearly two years of searching? How many 99ers are there?…

Back in May, we first chronicled the plight of unemployed men and women known as “The 99ers.” At the time, many of these long-term unemployed had exhausted the maximum 99 weeks of unemployment benefits available to them in many states. The group, inauspiciously dubbed “The 99ers” for the remarkable amount of time they went without a job and with benefits, represented the broader face of many jobless Americans from across the country, forced to hang on every tea leaf, smoke signal, and whimper from their representatives in Congress of a new string of jobless aid programs that were, as many experts believed, on par to ignore them completely.…

More bad news for those facing tough financial times: mortgage foreclosures are likely to top the one million mark in 2010. As The Associated Press reported in the last week, “Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.”

By comparison, according to RealtyTrac, in an average year the United States only sees about 100,000 homes in foreclosure. So, with the country on track to face ten times that amount of foreclosures this year, with 1.7 million U.S.…

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 millions of struggling Americans still working hard to find employment might disagree, economists are heartened about prospects for growth this year as industries increasingly report better profits and add new jobs.

In fact, job growth is said to be at its fastest pace in 10 months.  In recent surveys, American employers were found to have added 162,000 jobs in March 2010, the most in three years. Wages and salaries also are improving.  And, obviously higher salaries bode well for the recovery, since consumer spending accounts for as much as 70 percent of our nation’s economic activity.

So, are you still looking for work?…

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

But one lesser-known and publicized piece of the CARD legislation is its effect on companies who issue gift cards. The rules, which won’t be fully enacted until August 2010, will affect you if you’re one of the whopping 95 percent of Americans that have used a gift card. From online iTunes stores to the brick-and-mortar department store, there is seemingly a gift card for everything, with gift card purchases now accounting for an impressive portion of all purchases, especially during the holiday season.…

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.…

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.…

Overworked? Underpaid? Join the Club: The Middle Class

This week, a money-themed CBS Sunday Morning featured Cary, North Carolina’s SAS, a business software company–featuring subsidized on-site daycare, gyms, and health care–as an example of a corporate aberration in the these tough economic times. As CBS reporter Jim Axelrod pointed out in his cover story “The Great American Paycheck Squeeze,” the reality is, “for more and more Americans in these recessionary times, SAS might as well be Disney World. The fact is, most workers feel overworked, under-appreciated and–most of all–under-paid.”

What’s your work experience in this decade of decline? Overworked? Underpaid? Or just happy to be here?…

While many economists argue that the economy is steadily rebounding, whether you’re in a recession or recovery seems to largely depend on where you live, if you have a job, if you can pay your bills, or if you still have your home.

The Huffington Post reported this week that facing an economic meltdown in their personal lives, many formerly middle-class families have had to find “creative ways to cope with the sudden loss of their jobs and homes.” In her article, “Rattlesnake for Breakfast, Wedding rings on Craigslist: Families Cope With Falling Out of the Middle Class,” Laura Bassett describes how the American dream, for many, has turned into a surreal nightmare.…

Many of our clients automatically assume they will lose their rental property if they file for bankruptcy. Isn’t that the whole idea of bankruptcy? That you give up everything you have, with a few exceptions, in exchange for getting the debt collectors off your back?

Well, no. Many factors come in to play in determining whether or not you will be forced to sell your rental property, including whether you file chapter 7 or chapter 13, how much money you owe on the property and how much income you receive from it.

Let’s start with chapter 7. If you file chapter 7, you get an exemption for the equity in your primary residence – how much depends on the state you live in – but rental property doesn’t qualify for the standard residence exemption.…

In Part I of the Preventing Foreclosure series, you received an introductory look at how to stay in your home, either through bankruptcy proceedings or via negotiations with your mortgage lender. In Part II of this six-part series, we’ll elaborate on the ins and out of working with your mortgage lender, including timelines, terms, and what to say when starting this important dialogue.

Part II – Working With Your Lender

The best time to contact your lender is when you’re current on your mortgage and haven’t missed any payments, but you recognize tough financial times are ahead and that this may change in the near future.  Now, more than ever, lenders are willing to negotiate with home loan borrowers, if only to reduce the number of foreclosures they’re currently dealing with.…