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Archive for the ‘Bankruptcy Help Articles’ Category
Checking in on the Credit CARD Act
A recent report from the Center for Responsible Lending suggests that the reforms introduced by the Credit CARD Act of 2009 are working to improve transparency in the marketing of credit cards to consumers.
In case you need a refresher course, the Credit Card Accountability Responsibility and Disclosure Act was designed to improve transparency from banks and other credit card issuers so that consumers could navigate the world of credit with greater ease and less financial distress. Here’s a look at just how much this consumer protection legislation has changed.
- Advertised credit card interest rates: Before the passage of the Credit CARD Act, the CRL reports, the discrepancy between the rates advertised by credit card offers and those that consumers actually paid had reached unprecedented highs. I
Finance Fraud – Sacramento
On December 24, 2010, the Financial Times reported that a former Wall Street semiconductor analyst admitted to fraud. The former analyst is assisting in insider trading investigations against Primary Global Research, based in Mountain View, CA.
Karl Motey, the former analyst, pleaded guilty in a New York federal court to securities fraud on December 14, 2010. Even though some people suffered bankruptcy filings last Christmas eve, they should realize they were in a better place than Motey, who faced criminal charges.
Motey admitted to giving inside information on Marvell Technology Group to hedge funds. The insider trading probe goes to show that even when people are well educated with money, they still suffer problems by not living simply. Motey previously worked at Wachovia Securities. Motey got tips from an employee at Marvell, which he used to tip off hedge funds who were clients of his consulting business.
At the same time of Motey’s guilty plea, the government investigated Daniel DeVore, a former Dell global supply chain manager.
Stop Home Foreclosure Dead in its Tracks
No homeowner plans to go into foreclosure. However, the current economy has put many people in the uncomfortable position of missed mortgage payments, and the housing market has made it difficult to sell a property for what is owed against it. If you find yourself in this position, what can you do to stop home foreclosure dead in its tracks?
First, contact your lender. Home foreclosure costs money, and many lenders will work with you to help bring your loan current. Some may agree to modify the terms of your loan. It is more cost effective for the lender to get the loan current than to proceed to foreclosure. This option is time sensitive: depending on the lender and mortgage insurer (FHA, VA, or private insurer), foreclosure proceedings are initiated after the loan becomes 60 to 90 days past due.
Second, if efforts to work with the lender are unsuccessful and home foreclosure seems imminent, you can stop foreclosure dead in its tracks by filing for a bankruptcy before the lender files a notice of default. A bankruptcy filing causes an automatic stay of foreclosure activity.
It’s Getting More Expensive to Have Your Identity Stolen
A new report from Javelin Strategy & Research uncovers some potentially troubling numbers about the changing face of identity theft. Here’s a look at the report’s findings and some reminders about what you can do to protect yourself, your identity, and your credit.
- In total, fewer people were victimized by identity theft in 2010: The number of identity theft cases dropped by a reported 28 percent from 2009 to last year – reports in 2010 dipped to the 2007 level. Additionally, it seems the average dollar amount of fraud committed by identity thieves dropped slightly (from $4,991 in 2009 to $4,607 last year). The group speculates that a decrease in corporate data breaches can be credited with the per-case drop-off.
- More expensive fraud for individuals: While the total number of identity theft cases decreased last year, the cost of such incidents for victims rose. In fact, Javelin reports that the jump was large – 63 percent – up to $631 from $387 in 2009. This su
Financial Cons – Sacramento
On December 27, 2010, The Wall Street Journal reported in “Tough Times Breed Financial Cons” that the poor economy is generating more financial scams. The recession teaches people not to trust other people even when they are professionals who owe fiduciary duties. People do not always do things to be nice to others, or even to follow their professional responsibilities. People do things for meet their selfish needs.
The attorney might settle to get rid of a case so he can work on other cases to generate more revenue. The financial investment firm might pay for inside information so it can get an edge on investment decisions. Financial swindlers scam people into investing money by promising false returns.
Louis Michael Pihakis, age 80, was indicted in Phoenix, AZ federal court for an advance fee scam. Allegedly, he falsely promised sophisticated business people multimillion dollar investments. People who scam come in all ages and backgrounds. They are not always those who look desperate for money, uneducated, non-English speaking, or on the brink of bankruptcy.
The Latest on the Foreclosure Crisis
Since the housing boom of the early 2000s, the housing picture in the U.S. has changed dramatically, as anyone struggling to make mortgage payments each month already knows. But exactly what is the state of mortgages and foreclosures right now in the country? Here’s a look at some indicators that say a lot.
Lowest Homeownership Rate In More than a Decade
Recent data released by the Census Bureau (and reported at Credit.com) show that home ownership in the United States has dipped to its lowest level since 1998:
- In the fourth quarter of 2010, 66.5 percent of Americans reported owning their own home.
- In 2009, 67.2 percent of the nation claimed homeowner status; the drop reflects the continued effects of the recession on income and ability to make mortgage payments.
- At its peak in 2004, as many as 69.2 percent of Americans reported owning a home.
Just as subprime loans were found to disproportionately affect non-white home buyers, it seems that foreclosure rates are currently higher among that segment of the population: in 2007, the number of African Americans that owned a home was reported at 48 percent; a year later, the number had already fallen to 44.8 percent. S
More Expert Network Arrests – California
On December 30, 2010, The Wall Street Journal reported in “Another Arrest in ‘Expert-Network’ Probe” that Winifred Jiau of Fremont, CA was arrested in late December 2010 for providing inside information from technology companies.
Jiau, age 43, was paid more than $200,000 for providing hedge funds information on public companies. Expert network firms arrange communications between public company employees and investment firms.
Expert network firms like Primary Global Research LLC, where Jiau worked, was a back door to inside information. The people at the front door, like investor relations, company officers, in house counsel, at public companies knew from Regulation FD that they could not disclose inside information to investment firms unless the information was disclosed to the public at the same time.
The company employees who provide inside information to investment firms worked on the side and were paid fees for the information. With certain entities or individuals getting tips that are not available to the public, the public fails when its investments go down without the same access to information.
Jobless Claims – December 2010
On December 30, 2010, The Wall Street Journal reported in “Claims of Good Jobs News Need Tempering” that despite the positive jobless claims reports, those continuing to receive unemployment remain high.
The Labor Department reported in late December 2010, a drop in new claims from 420,000 to 418,000 and a slowing in layoffs, but this could just be that employers did not want to put their employees out on the streets during the holidays. It is predicted that employers will come back in the early new year with pink slips.
The majority of people on unemployment are considered long term unemployed, out on the streets for nearly two years with no offers. These people have exhausted their initial 26 weeks of unemployment, and living off of their extended benefits. There is much anxiety for 2011 with less hope for any full time employment.
By going into year three of unemployment, many people have little to celebrate when it comes to the new year. These people have been taken advantage of by companies with piecemeal jobs.
An Explainantion of Chapter 7 Bankruptcy by Los Angeles Bankruptcy Attorney Steven C. Peck
There are primarily two ways for an individual to file for bankruptcy, Chapter 7 and 13. According to Chapter 7, a person may keep a certain part of his property together with most liens, like real estate mortgages. If the person has other assets then these are sold off by the interim trustee to pay off the creditors. However, in any US city like Los Angeles and San Diego there are numerous unsecured debts which get cancelled if Chapter 7 is filed. says Los Angeles Bankruptcy Attorney Steven C. Peck.
There is one major disadvantage of filing Chapter 7. A record of it stays for 10 years on the debtor’s credit report. This practically makes the debtor less eligible to get any further credit for the next 10 years and/or the terms of credits available would be less friendly. This can only be improved once the actual debt is removed from the debtor’s record, which in turn would also improve his creditworthiness.
* Things You Must Know About The Chapter 7
There are various things an individual or a company can do for debt consolidation – one of the way-out is declaration of bankruptcy.