An article from NBCnews.com.

Excerpt: “Student-loan defaults surged in the first three months of 2013, while efforts to collect bad loans are faltering, according to credit analysts and government audits. It is the latest twist in a college debt crisis that is hanging over recent graduates and dragging on the broader economy.

Credit-rating firm Equifax said $3.5 billion in government and private student loans went bad in the first three months of 2013, the most since the company began keeping track. The U.S. Department of Education said 6.8 million federal student loan borrowers are now in default, representing $85 billion in debt. And the department’s systems for collecting the bad loans are struggling to keep up.

The Department’s Office of Inspector General found in December that more than $1.1 billion in defaulted student loans were stuck in a sort of computer limbo.”

Keep reading at the link below!

Credit to original article: http://nbcnews.to/162ZSWk

An article from Inman News.

Excerpt: “Foreclosure timelines are growing more bloated, largely due to sustained government intervention in the housing market, according to RealtyTrac’s March U.S. Foreclosure Market Report. At the same time, foreclosure activity continues to subside, drifting closer to pre-meltdown levels, RealtyTrac reported.

“Although the overall national foreclosure trend continues to head lower, late-blooming foreclosures are bolting higher in some local markets where aggressive foreclosure prevention efforts in previous years are wearing off,” said Daren Blomquist, vice president at RealtyTrac. “Meanwhile, more recent foreclosure prevention efforts in other states have drastically increased the average time to foreclose, which could result in a similar outbreak of delayed foreclosures down the road in those states.””

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Credit to original article: http://bit.ly/Z8F4JO

An article from The New York Times.

Excerpt: “When you file for personal bankruptcy protection and have debts discharged by the court, your credit report is supposed to be updated to reflect that you no longer have to pay those bills.

In the past, the big three credit reporting bureaus were not always so good about doing that. But in the last few years, the bureaus have become much better, says John Ulzheimer, president of consumer education at SmartCredit.com.

The reason, he said, is a settlement agreement the bureaus reached to as part of a class-action lawsuit. (Mr. Ulzheimer was an expert witness on behalf of plaintiffs in the suit.)”

Keep reading at the link below!

Credit to original article: http://nyti.ms/18cV0ev

An article from CBSnews.com.

Excerpt: “Thousands of Americans are sent to jail not for committing a crime, but because they can’t afford to pay for traffic tickets, medical bills and court fees.

If that sounds like a debtors’ prison, a legal relic which was abolished in this country in the 1830s, that’s because it is. And courts and judges in states across the land are violating the Constitution by incarcerating people for being unable to pay such debts….

Roughly a third of U.S. states today jail people for not paying off their debts, from court-related fines and fees to credit card and car loans, according to the American Civil Liberties Union. Such practices contravene a 1983 United States Supreme Court ruling that they violate the Constitutions’s Equal Protection Clause.

Some states apply “poverty penalties,” such as late fees, payment plan fees and interest, when people are unable to pay all their debts at once. Alabama charges a 30 percent collection fee, for instance, while Florida allows private debt collectors to add a 40 percent surcharge on the original debt. Some Florida counties also use so-called collection courts, where debtors can be jailed but have no right to a public defender. In North Carolina, people are charged for using a public defender, so poor defendants who can’t afford such costs may be forced to forgo legal counsel.

The high rates of unemployment and government fiscal shortfalls that followed the housing crash have increased the use of debtors’ prisons, as states look for ways to replenish their coffers….

Keep reading at the link below!

Credit to original article: http://cbsn.ws/10fNagW

1.) It encourages positive spending.

When you are surrounded by debt, almost all of your money is going towards alleviating that debt. However, paying off debts doesn’t necessarily bring that money into circulation within our economy. In fact, if you’re paying 20% interest or more on a credit card debt, the creditor has typically already been paid back the initial balance as well as a healthy profit.

If you apply for bankruptcy and those debts are wiped out, you’ll obviously still be spending money. However, this money will be going towards food, clothing, services, and other outlets that help to boost our economy by helping businesses and therefore bringing our country back towards prosperity.

2.) It gives you a second chance on your mortgage.

Many people currently facing bankruptcy or foreclosure bought a large house back when interest rates were low and could afford it. However, no one could have anticipated the market would turn out like it did and those people are now stuck with mortgage payments that they can’t afford on property worth much less than their initial mortgage value.

However, bankruptcy can take that mortgage off your back and help you to start saving up money for a down payment on a more affordable house. “People coming out of bankruptcy are usually more cautious and conservative about buying their next home post-bankruptcy”.

3.) It gives you a better hold on whatever debt is left.

Filing for a Chapter 13 bankruptcy can allow you to keep your home and secure a more manageable grip on your payments. If you file for a Chapter 7 though, you will be free of all your debts, but most likely won’t be able to keep your home. This is not always a bad thing though!

Simply being able to cut off the vast majority of your debt allows you to more easily manage the debt that may remain and help you work your way towards rebuilding your credit much easier.

4.) It encourages full employment.

When you are drowning in debt, it’s very hard to see that light at the end of the tunnel. Opting for bankruptcy and bringing your debt down to a manageable level not only let’s you see the end of your debt, but also brings into view your debt-free future. This typically motivates people to work harder and find jobs.

An article from Yahoo.com.

Michigan Treasurer Andy Dillon recently anticipated that while Detroit is in a financial emergency, there will be no need for a municipal bankruptcy filing. Him and his team believe that Detroit needs an emergency financial manager to accomplish the necessary reforms, but that will ultimately be up to Republican Governor Rick Snyder.

Credit to original article: http://yhoo.it/13btcTw

1.) Discharge of most debts.

This is the primary goal of most bankruptcies; to have as much of your unsecured debts discharged. There are a few types of debt that are not dischargeable, but for the most part, bankruptcy is a relatively quick and easy way to end the creditor harassment, hardship, anxiety, and stress normally associated with debt overload.

2.) Protection of property and income from unsecured creditors

If there are unsecured creditors who are after your property, bankruptcy is often the only way to protect your property. This can possibly include up to total protection for a home, car, or any other vital property. Bankruptcy also prevents any garnishment of wages or income once your bankruptcy petition is filed. This extends from your job to even Social Security or other public penefit payments.

3.) Tools for eliminating or modifying secured debts

While a bankruptcy discharge will not, by itself, eliminate claims by secured creditors, there exists other provisions in the Bankruptcy Code that allow many types of liens to be eliminated or reduced.

4.) Automatic stay

An automatic stay is an automatic court order that you gain instantaneously on filing a petition. This is sometimes the most valuable feature of a bankruptcy since it prohibits all sorts of collection attempts by creditors, including repossessions, garnishments, utility shutoffs, foreclosures, and evictions. The stay also is an effective way to end creditor collection efforts. Basically, it gives you that breath of relief that you desperately need.

It’s a myth that bankruptcy causes lots of negative repercussions. Bankruptcy can be one of the most beneficial solutions for you depending on your situation. Don’t hesitate to come in for a free consultation!

An article from Bloomberg.com.

Today, RDA Holding Co., publisher of Reader’s Digest magazine, has filed for bankruptcy. They are attempting to cut $465 million in debt, primarily incurred from the ever-growing number of consumers shifting from print to electronic media.

RDA is working to reduce their debt by approximately 80% once it exits Chapter 11.

Credit to original article: http://bloom.bg/YrU2oQ

Dworkin had graduated from Harvard Law School in 1957 and was a Rhodes Scholar at Oxford University in England. Until he passed away on February 14th, 2013, Dworkin was a professor of law at New York University and emeritus professor at University College London.

Credit to original article: http://bit.ly/YZyOQ5

Perhaps situations aren’t as bad as they seem! Reportedly, Michigan bankruptcy cases are down quite a good amount. “The government says new filings last year were down 13 percent in bankruptcy courts in eastern and western Michigan”. Compared even to 2009, filings have gone down by a whopping 28 percent. It seems that Michigan’s bankruptcy situation is beginning to mirror what’s been happening nationally, since new bankruptcy cases were down by 13 percent across all 50 states as well.

Credit to original article: http://bit.ly/WrUZOd