Modesto Bankruptcy Lawyer Blog

As the holiday season came and went, U.S. consumers increased their dependence on credit cards and that has led to many people struggling to get out of the debt -- a prospect that these credit card companies try to avoid.

The Associated Press recently reported that November debt surged by $20.4 billion, the largest monthly gain in a decade. Most experts believe this was fueled by the holiday shopping season, as Americans set aside their economic worries and spent big during the holiday season.

Our Modesto bankruptcy lawyers recognize that people in bad economic situations attempt to make sure everything seems normal for their children by continuing normal spending habits, either because of embarrassment or trying to make sure their children aren't disturbed by a different routine. But this can lead to additional debt.

If joblessness is a factor and credit card debt is increasing as people search for employment and a steady stream of income, filing for bankruptcy in Modesto may be a workable option for your family.

For one, most credit card debt is eligible for discharge, meaning that whether you have five credit cards or ten and $10,000 in debt or $50,000, it's possible to have that debt wiped clean as you start over. Some people might say that they don't want to file for bankruptcy because they believe it will hurt their credit score.

But what people must consider is that if they have thousands in credit card debt already and have begun missing payments, their credit score is already poor. As months pass without payments and new fees kick in, the debt compounds. The creditors are reporting these problems to the credit bureaus and your score is likely low anyway.

Filing for bankruptcy is a way out of the continuous cycle of debt. It's a stopping point and a starting point. It ends the continuation of debt that piles on and never seems to stop. At the same time, it starts a fresh life, without the debt that is dragging down a person and their family.

As the Associated Press recently reported, consumer debt spiked in November as consumers were granted more credit cards for gifts and bought more cars with loans from banks. The Federal Reserve reports that credit card debt rose by $5.6 billion and auto loans jumped by $14.8 billion.

The Associated Press reports November was the third straight monthly increase in debt after the economy began showing modest gains. In December, employers added 200,000 jobs and the unemployment rate dropped to 8.5 percent, the lowest rate in three years.

Borrowing has increased in six of the last nine months and in November, Americans saved just 3.5 percent of their income, the lowest rate since the recession began in December 2007.

That could be a recipe for disaster, as lots of debt and little savings can put consumers in Modesto in a precarious position. Our bankruptcy lawyers know that times are tough and especially in California, where the economy hasn't improved as quickly as we had hoped.

Continue reading "Consumers Increase Credit Card Debt in Modesto, Nationwide to Start 2012" »

At least one Modesto family is hoping that 2012 brings some better fortune than 2011, as their finances have gotten difficult because of job loss.

This is a common refrain that our Modesto bankruptcy lawyers have heard in the last several years as many people struggle with the effects of the economy. Foreclosures, unemployment, high medical bills and other factors have led to financial ruin.

But there is help and it comes in the form of filing for bankruptcy in Modesto. Some people do all they can to avoid bankruptcy, while remaining unaware of the many benefits of these laws.

For people struggling with job loss, a bad mortgage situation or foreclosure, major medical bills that have turned into debt problems or credit card payments that have sparked late fees and high interest rates, bankruptcy can actually be very beneficial. it allows people to discharge their debts and break free from them while providing an opportunity to control their financial future.

Unemployment has hit California hard and Modesto is among the hardest hit areas nationwide, according to a recent report by KRCA.com. While unemployment rates nationwide have continued to drop slightly recently, Modesto still ranks among the highest cities for unemployment rates nationwide.

In fact, in November, 9 of the 10 worst cities for unemployment were located in California. El Centro, California had an unbelievably high 27.2 percent unemployment to lead all cities, while Yuma, Arizona checked in at 23.7 percent. Modesto ranked No. 6 overall at 15.5 percent.

The Modesto Bee recently highlighted one family that is struggling mightily with debt as a result of job loss and is using a Modesto bankruptcy to its advantage. The family of five has struggled since 2009, when David lost his job as a bottled water truck driver. Laura worked part time as a waitress and they owned a three-bedroom house, a boat and took frequent trips to Disneyland with their three daughters.

After David was laid off, the health insurance expired, the boat was repossessed and the trips to Disneyland stopped. The couple filed for bankruptcy to get protection from their debts as they begin to recover from the whirlwind that life has put them in.

Laura is working part time, going to school and seeking a job in the medical field. David is searching for jobs, but seeks disability pay for migraines. Despite a lack of healthcare, the family is able to cover two of their daughters who have pre-existing conditions and other low-cost medical options are helping.

Our Modesto bankruptcy lawyers believe that bankruptcy will go a long way toward helping this family recover from the difficult situation they find themselves in. By clearing off debts, families can begin the process of recovering and starting fresh. Bankruptcy laws are designed to help consumers struggling with debt. Allow these laws to help you if you are in a difficult financial situation.

Continue reading "Will The New Year Bring Better Finances For You? Modesto Bankruptcy Could Help" »

With only days away from Christmas, retailers have ramped up their efforts to get shoppers into their stores either for the first time this holiday season or to get them back in for more shopping bliss..

But, it's also been a time where credit card companies have been clamoring to get consumers to sign up for their plastic, offering "perks," "rewards" and "cash back" plans that may end up being more trouble than it's worth for consumers who do not handle credit well..

While the marketing campaigns make it seem so simple to get bonuses, in reality they can be tough to earn or qualify for. In many cases, as Modesto bankruptcy lawyers have seen, people have to spend a certain amount every month, pay off what is owed in a short period or jump through other hoops to get the perks. It's not as simple as receiving the card in the mail, using it and automatically getting money in your pocket. These companies are smart -- they're not giving away any money without making much more.

Credit cards are a necessary evil. Most Americans have at least one and most people have several. In the minority are adults who have no cards and rely on a cash and check system of living. And that's what these cards want because the more we use them, the more in debt we become.

That's where bankruptcy in Modesto comes into play. Many people have fallen for far too many lines of credit, leading them down a path of debt and sometimes financial ruination. These consumers at some point may figure out that late fees, withdrawal transaction fees, and spikes in interest rates can lead them to continually be stuck in debt.

Filing for bankruptcy wipes clean that debt and allows people to live a life without the pressures of creditors and debt collection agencies. There are two chapters of bankruptcy and both are designed with consumers in mind.

According to a recent article by Moneyrates.com, the credit card companies have been putting on a full-court press to lock up as many consumers as possible. They are shooting television commercials with high-priced celebrities, doing mailings and increasing Internet advertising to lure in consumers.

Here are some examples of recent "deals" the companies have been using:

• American Express offered 20 percent discounts when making purchases on Nov. 26 from certain businesses.


• Bank of America pays 2 percent cash back on groceries, 3 percent on gas up to $1,500 every three months. Its Upromise card offers 11 percent cash back for college when shopping through Upromise.com.


• Chase and Citibank are both paying new credit card holders $200 after they put $500 on their card.


• Capital One has a card that offers 1 percent cash back on day-to-day shopping and a 50 percent bonus on earned cash on top of a one-time $100 bonus.


• Discover offers a card with 0 percent interest for 15 months and you get 5 percent back on up to $300 spent.

While the flashy perks may be enticing, don't forget the basics. Read the fine print, find out what the interest rate will be after the introductory rates wear off and do your research. As stated earlier, credit card companies aren't in business to give away money. It's unlikely a consumer can profit from their credit card, so all the promises of perks and cash back are likely just a show. Proceed with caution.

Continue reading "Modesto Holiday Shopping Season in Full Swing; Credit Card Companies Profit Big Time" »

Finally some good news on the economy.

CNNMoney reports that in November, the unemployment rate dropped to 8.6 percent, the lowest rate since March 2009. In that month, a net of 120,000 jobs were created.

For many people in Modesto, while finding work is a great thing, a long time without a job has them in major debt. With few alternatives, many people have used credit cards to get by but are not getting ahead in paying off the debt. By making minimum payments or no payments, the consumer is put in a bad position.

This is when fees and high interest rates kick in, and companies continue to look for ways to keep consumers in debt with them. But for many, they have broken free from that downward spiral by considering bankruptcy in Modesto.

Credit card companies have used advertising campaigns and other means to make Americans believe that bankruptcy is a bad thing. That's because for them, it is bad. For consumers, it's good. Our Modesto bankruptcy lawyers know that consumers can benefit from these consumers laws.

Rather than toil in frustration, stress and debt, a consumer can shed the debt that has caused their life to be difficult and at the same time, shield themselves from creditors who are harassing them.

But for many, the new numbers mean they may be able to break free from that cycle. According to the CNN report, the decline in unemployment was better than some experts predicted. Some believed there would be about 110,000 jobs added. While the private sector added 140,000 jobs, government cut 20,000 jobs.

The jump in jobs is noticeable, though. In September and October combined, only 72,000 jobs were added. A majority of the November hires, not surprisingly, were in retail -- 50,000 and another 22,000 jobs in hospitality, like restaurants and hotels. But the U.S. Department of Labor reported that it adjusts its numbers to take into consideration seasonal trends.

Still, there is room for improvement. There are 13.3 million people who are unemployed and less than 1/3 of the 8.8 million jobs that have been lost in recent years have been recovered. Nearly half -- 43 percent -- of people looking for work have been doing so for more than six months.

This shows that many more people are still struggling. While the news is encouraging, it's only a start. For people who are still looking for work, they may have come to a point where there simply do not have any source of funds to pay their debts. They have sold assets, cut back on their lifestyle and still searched for work unsuccessfully. The bills have piled up and there is no way to pay.

For these people, filing for bankruptcy could be beneficial. Rather than dealing with creditors who call you every day, filing immediately stops them from calling. Most important, bankruptcy clears your debt and can also save your house from foreclosure in Modesto. If you are in a position of considering bankruptcy, set up a free consultation with a skilled Modesto bankruptcy lawyer today.

Continue reading "Jobs in Modesto Up in November, But Many Still Seeking Bankruptcy Protection" »

By now you must have heard that stores are not only opening at midnight Friday, but some are even opening Thursday night to try to get a jump start on the competition.

Critics argue that by opening on Thanksgiving Day, the retailers are infringing on a holiday meant to be spent with family. Supporters say that many people incorporate shopping into their Thanksgiving holiday plans, so the earlier the better. Regardless, retailers are expecting huge numbers of shoppers Friday as the holiday shopping season is in full swing.

While many will be enticed to line up overnight or get a pre-dawn start Friday, a free-spending attitude can lead to major debt problems. The only winners in the holiday shopping season are the retailers and the credit card companies. If you've watched TV lately, you've noticed the increase in credit card advertisements. They are making a push to get people to use their cards. That's because they know people will overspend and their hidden fees and high interest rates will make them money, too.

Consumers must be careful because these predatory lending practices can cause people to have to consider bankruptcy in Modesto. For those who end up with thousands of dollars in unsecured debt such as credit card debt, bankruptcy may be the only way out.

Creditors are rarely willing to work with consumers to pay down debt. They would rather have it all. But filing for bankruptcy scares them because they know they could end up with very little. Hiring an experienced Modesto bankruptcy lawyer should be your first step if you've run into problems meeting debt obligations.

Bankruptcy is a complex process, but it can be extremely beneficial to those who use these laws to their advantage. For one, a person can clear up most or all of their debt by filing for bankruptcy. Under Chapter 7 bankruptcy in Modesto, a person can have unsecured debts cleared while possibly keeping all of their assets or having to give up a few in order to pay back some of the debt. Chapter 7 is designed for people who have little or no income.

Chapter 13 bankruptcy, however, allows people to keep their assets if they can make monthly payments over 3 to 5 years to pay back a portion of the debt. This is the least popular form of bankruptcy, but can help people who want to stay in their houses and keep their cars and other assets.

Either option may be appropriate, especially when shopping debt reaches high levels. The National Retail Federation estimates that 152 million people are expected to shop during the Black Friday weekend, a 10 percent jump from last year.

However, the organization is typically low on its estimates. Last year, it estimated 138 million shoppers and 212 million showed up to look for sales. Target, Best Buy, Kohl's and Macy's have all said they're opening at midnight Friday. Wal-Mart and Toys R Us have said they'll be open at 10 p.m. and 9 p.m., respectively, on Thursday.

Continue reading "Black Friday is Good for Retailers, Bad For Modesto Consumers Who Get Trapped in Debt" »

A recent article out of St. Louis looks at the two personal bankruptcy options available to all Americans -- Chapter 7 bankruptcy and Chapter 13 bankruptcy..

Modesto bankruptcy lawyers will take a look at which form of bankruptcy could be appropriate for the average consumer struggling with debt. Whether choosing Chapter 7 bankruptcy or Chapter 13 bankruptcy in Modesto, the consumer can obtain debt relief.

Both forms allow for either all or a majority of a person's unsecured debt to be discharged after going through the bankruptcy process. So, both are beneficial. But there are requirements for qualifying that are based on a person's income and their individual situation. That's why consulting with an experienced Modesto bankruptcy lawyer should be your first step if you're considering bankruptcy.

Chapter 7 bankruptcy is the form that most people think of when they think of bankruptcy. This is where a person's debts are discharged and they may be called on to give up some of their possessions to sell and pay off debt. But that's not always the case. There are many situations where a person has few pricey assets or they owe more on them than they're worth and creditors aren't interested in them.

That means a person can keep their assets and still have their credit card, medical and other debt wiped clean. This is a form of bankruptcy considered for non-wage earners or people who have more debt than their income can reasonably satisfy. They are unable to pay their debts either because of job loss or are overwhelmed with debt.

According to statistics from the American Bankruptcy Institute, Chapter 7 bankruptcies consistently make up about 70 percent of personal bankruptcies nationwide.

In the first two quarters of 2011, they made up 71.3 and 72.32 percent of bankruptcies, respectively. In 2010, they peaked at 73.45 percent during the second quarter and going back a few years they made up as low as 57.45 percent in 2006. The number of bankruptcies has more than doubled from 597,965 in 2006 to 1,536,799 in 2010. Numbers for 2011 should be relatively close to 2010 numbers.

But studies have shown that Chapter 13 bankruptcies have become increasingly popular. In 2005, lawmakers changed the standards for filing for Chapter 7 bankruptcy, making it more difficult. Since then, some people have been forced to file Chapter 13 because they make too much money for Chapter 7.

This may be because people who make money, but whose houses are dragging them down, are looking at bankruptcy as a viable option. If people bought a house at the peak of housing prices only to see them crumble and currently are living in a house that is worth 1/4 of what they paid for it, they may allow it to go into foreclosure.

That could be a strategic decision or it could be because of job loss or job transfer. In these cases, it may be possible for the bank to come after the homeowner and seek a deficiency judgment, which means the bank attempts to get the homeowner to pay the difference between the mortgage amount and the sale price at auction after foreclosure.

For these people, perhaps Chapter 13 bankruptcy in Modesto fits best. Under Chapter 13, all debts aren't simply discharged like in Chapter 7. In this form of bankruptcy, the debtor must set up a payment plan, typically over a 3- to 5-year period. During this time, they make monthly payments to pay back some of the debt. The exact portion is determined on a case-by-case basis.

After the payments are made, the debt is considered discharged. While this may be more expensive, it guarantees that a person's assets remain intact. This includes a house, vehicles and other assets.

Continue reading "Which Chapter of Bankruptcy in Modesto Is Right For You? 7 or 13?" »

A recent Wall Street Journal article reports that the number of deficiency judgments is on the rise as banks attempt to make as much money as they can after being hit hard with foreclosures.

A deficiency judgment is an order from a judge that authorizes the bank to go after the original homeowner for the difference between what the amount of the loan was and how much the foreclosure sold for at auction. For instance, if the bank gives a loan for $175,000 and the house slips into foreclosure and is sold at auction for $45,000, that means the bank can go after the original homeowner for the $130,000 difference.

For a person who just lost their home to foreclosure, a deficiency judgement notice is devastating. If they had the $130,000 to spare, they probably would have continued making payments. But, luckily, filing for bankruptcy in Modesto can wipe that judgment away.

Like other debts, home-related debt can be tossed out after completing the bankruptcy process in Modesto. Modesto bankruptcy lawyers have helped countless clients who have been put in a bad situation because of foreclosure. Whether it was a job loss, outstanding medical bills or other issues that led to money problems, bankruptcy can get you back on your feet.

The story looks at the case of a man who had a vacation home in Florida. When he lost his job, he lost his house to foreclosure last year. But recently, he got a call telling him he owed $193,000 -- the difference between what the house was sold for and what the original loan was. Because of a huge dip in prices in Florida, his house got only a quarter of what he paid for it at auction.

In California, luckily, there are strict laws about when deficiency judgements can be granted. They can't be granted in nonjudicial foreclosures and they are limited by fair market value of the property. But it can still happen. We have not yet seen banks play by rules in any regard.

Foreclosure defense lawyers are reporting that they are seeing a big spike in deficiency judgments as banks struggle to make up for the money lost to the millions of foreclosures nationwide. A Wall Street Journal report of several hundred deficiency judgments nationwide showed that the average debt was $100,000. It reports that 64 percent of the 4.5 million foreclosures since 2007 were in the 41 states that allow deficiency judgments.

While lenders won't say when they decide to attempt to get a deficiency judgment, it appears they are going after people who considered a strategic default by walking away from a house based on its loss of value rather than inability to pay.

Experts believe banks are more and more panicky with the influx of foreclosures that have taken over the real estate market. They are losing millions of dollars in bad loans. The article reports that investors have been looking at deficiency judgments as a money maker, taking over the judgments and going to bankruptcy court or through debt collectors to make back as much money as they can.

The bottom line is that bankruptcy can save a homeowner who has dealt with foreclosure from getting slammed with a deficiency judgement.

Continue reading "Deficiency Judgments On the Rise in Modesto, So Protect Yourself With Bankruptcy" »

Two Georgia legislators recently introduced a bill in Washington D.C. that would allow people to pull money from their retirement accounts penalty free if they use it to pay for their mortgages, The Atlanta Journal-Constitution reports.

While this may be a well-meaning attempt to solve the mortgage crisis that has hammered our country, this by no means is a good idea.

Filing for bankruptcy in Modesto is a much smarter move if you are struggling to make mortgage payments.

Here's why. In bankruptcy, retirement funds are protected from creditors. Without money stored away for the future, you'll be robbing from your retirement in order to save a house that likely has lost its value. Even if a person wants to stay in their house, bankruptcy can help.

As Modesto bankruptcy lawyers have seen time and time again, people can file for bankruptcy and stay in their home during the process even if they've missed payments. They ften can stay in their home with a modified payment plan after bankruptcy has ended.

Or, after all their debts have been discharged, they can be debt free and can start a new life without credit card balances or other debt. It makes much more sense to go that route that throw away whatever long-term savings you have.

Sen. Johnny Isakson and Rep. Tom Graves have said they believe their bills would help people stay in their homes in these difficult economic times.

Isakson said he doesn't think that the country will be able to recover financially until the housing market turns around. He said he believes the legislation would reduce foreclosures and "stabilize home values."

Graves said many Americans who have saved up for retirement are now out of work and the current tax laws don't allow for withdrawals without paying a 10 percent penalty. The law, he said, would quash that penalty for those using the money for their houses. He believes this will cut down on late payments, foreclosures and help boost the economy.

Maybe this would help the economy and it would be fine to have that option available, but tossing away your retirement to save a house can't be a strong consideration for most people. A house is a necessity, but so is having the money stored away for food, medical care and other cost-of-living expenses when you can no longer work.

While the economy is bad and jobs are scarce, being at an age where a person can still work makes it a lot easier to one day build a secure retirement. For older consumers who can no longer earn a paycheck, tossing away your savings is not a smart plan. It would be better to lose a house, get rid of existing debt through bankruptcy in Modesto and start to repair your credit without touching your retirement accounts.

Continue reading "Modesto Bankruptcy Watch: Retirement and Bad Real Estate Debt " »

In the last week, three major companies -- Saab, Solyndra and NewPage -- filed for bankruptcy protection from creditors after falling on difficult times.

So, if major, multi-million dollar corporations need bankruptcy protection, do you? As a homeowner or even just a consumer with large loans and unexpected bills that are piling up, is bankruptcy in Modesto right for you?

For many people, it is the right choice. For others, seeking a loan modification, credit counseling from a non-profit center or other options may be a solution. But the decision shouldn't be made lightly. If you are struggling with finances and considering this step, consult with an experienced Modesto Bankruptcy Attorney in order to determine what options may work best in order to get you the financial freedom you deserve.

The 64-year-old Swedish automaker Saab halted production in June and has applied for court protection from creditors in order to reorganize. The carmaker wants a court-run restructuring.

NewPage is the largest North American coated paper maker. The Ohio-based company has $4.2 billion in debt it seeks to restructure as suppliers have cut off credit, leaving the company up in the air. Competition from other nations and the rising costs of its main components -- energy, chemicals and pulp -- have made times tough for the company.

Finally, Solyndra, a solar power company, became the third such company in recent weeks to consider bankruptcy. Now, there are questions about whether a potential buyer for the company is in the United States, which could drive jobs elsewhere. European governments have cut subsidies and Chinese manufacturers have increased production, hurting U.S.-based companies.

All these companies are seeking court-based help for their financial woes and piles of debt. The average consumer has tens of thousands of dollars in debt as a result of credit card use, a mortgage, car loans, student loans and even medical bills. For many, the debt has simply become too much to handle.

Private job loss has hit many in Modesto and with California's government ever so shaky, state jobs may continue to fall as well. These are difficult times and difficult times often call for difficult decisions. One such decision may be whether bankruptcy is right for you.

If you have piles of debt and can barely make minimum payments, have a house that you've fallen behind paying for or just got slammed with an extended hospital stay or were diagnosed with an illness, bankruptcy may be a smart move.

Drowning in debt is frustrating, yet bankruptcy allows consumers to get back on track after following through with the process. It protects you from creditors and loan sharks and lets you start over, eliminating much or all of the debt you owe. Don't continue to skate by month-to-month or deal with pesky creditors calling. Get freedom.

Continue reading "Major Companies File For Bankruptcy in Modesto, Should You?" »

Here we are some 12 months after most major banks essentially halted their mortgage foreclosure procedures because of obvious signs of robo-signed documents and other inaccurate paperwork filed in order to strip Modesto homeowners of their houses and their legal rights.

And yet as a new report by Americanbanker.com shows banks are continuing to use robo-signed documents in mortgage foreclosure cases, even as the country's five largest banks are working on a settlement with 50 states because of the problems with foreclosure in Modesto and elsewhere.

It's outrageous that banks are continuing to rely on these shady practices in order to steal people's homes. They obviously haven't learned their lesson. An experienced and aggressive Modesto Bankruptcy Lawyer sees these problems, but also knows that the banks have a lot of power. The only true way to stop foreclosure is to file for bankruptcy in Modesto. This automatically stops a foreclosure in its tracks and allows the homeowner to work with the bankruptcy court to stay in their house or to find the solution that best protects the consumer.

According to the news article, reporters reviewed several dozen documents over a period of time. And the documents revealed that major banks, such as Bank of America, Wells Fargo, Ally Financial OneWest Financial are backdating paperwork that should have been signed and processed at the time of transaction.

Some documents, the website reports, showed signatures from bank employees that are supposed to represent lenders and companies that don't exist. And the documents were signed this year!

Robo-signed documents are essentially documentation signed by mortgage servicers -- companies hired by banks to help them process and file foreclosures with the court. While bank officials' names appear on these documents as if they signed them, they were actually signed by people who had no authority and no knowledge of the underlying case.

Further, many of these documents either contain incorrect information or have been signed after the fact. This kind of deceit continues to permit banks to run over struggling homeowners -- the very taxpayers than bailed these banks out of trouble at the height of the financial crisis.

The article goes on to say that banks argue that creating documents long after the fact -- in some cases going to back to 2005 or 2006 -- is routine. That it "memorializes" documents that should have been signed back then. When banks sell bundles of mortgages to investors, called securitizations, they are supposed to be delivered to a trust within 60 days of the closing date. And they are supposed to include all relevant documents, including the promissory note and other mortgage assignments showing transfers from one lender to another.

Yet many banks failed to properly document these transactions and many cannot prove who actually owns a Modesto homeowner's house. This is a key avenue for defending a foreclosure because the bank has the burden to prove such facts.

The report also discovered that some officials signed documents on behalf of companies that no longer exist while working for another company. Some bank officials have been signing documents on behalf of companies that did work years ago but are now defunct.

The whole process is a mess. And while attorneys can fight this process and attempt to help a homeowner stay in their home, it's no guarantee. It's obvious how powerful the banks are. They have done this for years and even after getting caught, they still continue to do it.

Filing for Chapter 7 Bankruptcy in Modesto, however, takes a different approach. Instead of trying to fight a foreclosure, bankruptcy stops foreclosure immediately. Creditors stop calling and hounding and banks can't take your home while the process is ongoing. It is designed to help people start over and that can include keeping them in their home despite financial struggles.

Continue reading "Banks Still Using Robo-Signed Documents in Modesto Foreclosures" »

Nearly 13,000 people in the Eastern District of California, the area that includes Modesto, filed for bankruptcy in the second quarter of this year, about the same number to file in th first quarter.

Many people are seeing the benefits of filing bankruptcy in Modesto and how an experienced and knowledgeable Stockton Bankruptcy Attorney can help a consumer find their way to a more secure financial future.
According to statistics from the American Bankruptcy Institute, 12,976 people filed in the second quarter, a small increase from the 12,891 who filed during the first quarter. The Eastern District of California is the largest district in the state geographically, stretching from the Oregon border south through Sacramento, Stockton, Modesto, Fresno and down to Bakersfield. It stretches to the eastern border of the state.

The number of filings peaked during the second quarter of 2010, when 14,064 people filed for bankruptcy. But even the most recent numbers are far above those from 2006, when a total of 8,922 people filed for bankruptcy in this district for the entire year.

The Central District of California, which includes Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbera and San Luis Obispo counties, leads filings every quarter given its population.

Many news outlets have reported how bankruptcy filings are down, but they remain steady in California because of high unemployment and a glut of foreclosures, which have weakened the local real estate market. As the large inventory of houses on the market rises, prices will continue to drop and people remain unemployed, foreclosures will rise. And the credit hit and possible deficiency judgement banks come after homeowners for will lead to bankruptcy filings. Bankruptcy immediately stops foreclosure.

While bankruptcy in the past has gotten a reputation as being bad for credit scores and tougher to get loans and credit, it can be quite refreshing for many people struggling with debt. What some people don't consider is that if they have late credit card and mortgage payments, their credit scores are probably poor anyway, so bankruptcy will give them a fresh start.

And Modesto Bankruptcy Attorneys have seen clients getting offers for credit cards and loans during and shortly after the bankruptcy process is complete. Lenders will want to provide loans because they'll know that the client has little or no debt left after going through the bankruptcy process.

The majority of people who file for bankruptcy file for Chapter 7 bankruptcy in Modesto. It provides a fresh start by discharging most debts, for those who qualify after passing a means test. Chapter 13 bankruptcy, filed by about 30 percent of people, allows consumers to keep major assets, such as a house with a lot of equity, vehicles or other large possessions, to set up a payment plan over 3 to 5 years.

Whatever the individual situation, setting up a free consultation is the first step. Analyzing the client's needs and determining the right path to take is how our firm stands out.

Continue reading "Modesto Bankruptcy Filings Remain Steady in Second Quarter" »

If an idea by several U.S. Senators and U.S. Representatives turns into law, those considering bankruptcy in Modesto with tens or hundreds of thousands of dollars in student loans may soon be able to shave off the debt.

A Modesto Bankruptcy Attorney should be consulted by those who have a great deal of student loans. While these loans are often not subject to dishcarge, there are a number of ways bankruptcy can hel. With jobs scarce right now and the economic recovery slow, bankruptcy may be a good option for those who qualify.

According to a recent article published by U.S. News & World Report, three Democratic senators and four Democratic representatives introduced parallel bills that would allow people with burdening student loans to be relieved of that debt through the bankruptcy process. One of the sponsors is George Miller, whose district includes an area northwest of Modesto.

The bills would reverse a law change that went into effect in 2005, which made student loans ineligible for bankruptcy relief, unless the person is physically unable to work to pay them off and the loans are an undue burden.

The bill comes on the heels of a student by the John. J. Heldrich Center for Workforce Development at Rutgers University, which found that 56 percent of 2010 graduates were unable to find work. That number is down significantly from the classes of 2008 and 2009. A recent New York Times article stated that student loan debt outpaced credit card debt for the first time last year and is likely to top $1 trillion this year.

"Before changes were made to the bankruptcy code in 2005, only government issued or guaranteed student loans were protected during bankruptcy, said Sen. Dick Durbin, D-Ill. in a press release. "This protection has been in place since 1978 and was intended to safeguard federal investments in higher education. Today's bill would restore the bankruptcy law, as it pertains to private student loans, to the language that was in place before 2005, so that privately issued student loans will once again be dischargeable in bankruptcy."

With the economy slow to recover after the Great Recession, many recent-grads are struggling to find work, or are having to look to other areas outside of their field of study simply to be getting a paycheck. Coupled with having to live off of credit cards to get by in the mean time, many people are stuck in a tough spot.

Even if they've recently found work, they may have piles of credit card debt on top of student loan debt, making for a difficult time financially. If these bills become laws, many people who are struggling to get by and are considering bankruptcy in Modesto and throughout California will be significantly aided in the process. The bill has the backing of several educational organizations, the article states.

Continue reading "Congress Proposes Law That Would Allow Student Loans To Be Included in Modesto Bankruptcies" »

An article out of Florida reports that more women than men are seeking help with personal debt, possibly brought on by job loss for men in recent years, the Orlando Sentinel reports.

Regardless of why people are seeking credit counseling, or which gender is more likely to seek help, it is a problem that harms and affects people of all backgrounds. Modesto Bankruptcy Lawyers have helped many people of various stages of life with filing for bankruptcy in Modesto.

Medical bills, job loss and predatory lending have left many Americans and people here in Modesto in over their head in debt. Some seek help with their homes and slip into mortgage foreclosure scams that can leave them in worse shape financially. Others look to credit counselors, who try to help the consumers reorganize debt or negotiate with creditors and lenders. But they charge a fee to people who are stuck trying to get by often by paying the minimum on their credit cards. With little authority, but only advise, sometimes it doesn't work. Other times it's a scam.

But filing for and qualifying for bankruptcy in Modesto will help people clear away debt and give them a fresh start. Being able to clear away debts that have creditors calling and threatening to garnish wages is refreshing for many of our clients who feel like there are few places to turn for help. We will assess your situation and help you figure out what avenues exist to best help you.

And for those who want to stay in a house that is on the brink of foreclosure, filing for bankruptcy immediately stops the process.

According to the article out of Florida, more than 62 percent of the clients of one of the largest credit-counseling agencies in the state are female. Historically, the gender gap has existed going back for most of the last decade.

The newspaper and others speculate that more women today are the breadwinners in households, though studies show women still make about 80 percent of what men make in the workplace. But with 4 million people -- mostly men -- losing their jobs in the construction industry during the Great Recession, it's possible that more women are being forced to lead the household and are more in charge of family finances.

Whatever the reason for out-of-control debt, credit counseling may not be the answer for everyone. Bankruptcy can sometimes be a more stable and long-term solution to debt and can be more beneficial to a person's credit score than counseling. If debt lingers, a credit score can suffer. But taking care of it in one fell swoop can more quickly get a person or family on a fresh path financially.

Continue reading "More Women Seek Credit Card Debt Help Than Men in California" »

The Stockton Record is reporting that while foreclosure filings in California are down nearly 28 percent from a year ago in May, the Stockton metro area remains among the hardest hit by the mortgage meltdown.

Consulting with a bankruptcy attorney in Stockton or Modesto could stop foreclosure or prevent you from being subjected to a deficiency judgment or other consequences. Bankruptcy laws are designed to help people take control of their finances, and using those laws to one's advantage can provide many advantages.

The Stockton metropolitan area, which includes all of San Joaquin County, ranked second nationwide in the rate of default filings, followed closely by Vallejo-Fairfield ranking third and Modesto ranking fourth. Las Vegas led the way with the most defaults filed followed by the Reno-Sparks area in fifth.

"It's a reflection of how deeply buried the Stockton area was by the mortgage tsunami. We're up to 18 straight months of year-over-year decreases in foreclosure activity," Daren Blomquist, a RealtyTrac spokesman said of San Joaquin County legal filings, which include trustee sales, notices of default and lender repossessions. "The trend is in the right direction, but the numbers are still persistently high."

According to RealtyTrac there were 1,652 recorded foreclosure filings on San Joaquin County houses in May. Though this shows an almost 26 percent decrease from the 2,222 recorded in the same month in 2010 it still means 1 out of 139 households are filing for foreclosure.

Nationally, RealtyTrac reported nearly 215,000 foreclosure filings in May, a drop of 2 percent from April and a drop of 33 percent from May 2010. That means that last month, 1 out of every 605 housing units filed for foreclosure. Led by California, five states accounted for 51 percent of the national foreclosure activity in May, where almost 52,000 properties got a foreclosure filing. Florida had 19,192 foreclosure filings followed by Michigan with 14,614, Arizona with 13,122 and Nevada with 11,039.

"Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask," says James Saccacio, chief executive officer of RealtyTrac. "First, activity spiked in May for various stages of the foreclosure process in some states, a pattern that has occurred in several states over the past few months. This pattern provides evidence that lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory.

Filing for bankruptcy doesn't have to be painful; millions of Americans do it every year. Many bankruptcies are beyond the debtor's control, caused by circumstances like a devastating illness or injury or loss of a job. Filing for bankruptcy is an option to rid yourself from debt due to medical bills, credit cards or student loans. Let our attorneys assess your case and determine the best course of action for you.

Continue reading "Foreclosure Filings Still up in Stockton, Modesto Areas" »

The Sacramento Bee recently chronicled the experiences of two couples struggling with credit card debt. Both couples used a debt solutions company and took more than five years to pay off their debts. Evaluating your options is recommended before you sign on with any agency claiming to make you debt-free.

Contacting a bankruptcy lawyer in Modesto could have given these couples a fresh start much sooner.

Most people think of bankruptcy as something to be ashamed of, but it's not. Consumers that have fallen on hard times because of medical bills, real estate debt and credit card debt deserve a new start. An experienced bankruptcy lawyer can explain the two types of bankruptcy options a consumer has. One can wipe out most of your debts immediately so you can start anew. Credit counseling, which won't save your credit rating, is another option. Your credit report will show late payments that will stay on the report for years. This will greatly affect your ability to obtain loans.

The state Department of Corporations keeps on eye on the credit counseling agencies in California.

Here are some cautionary tips and red flags regarding credit counseling agencies:

-Considerable upfront fees - most places charge you a set-up fee and then add on additional fees.

-Misplaced or diverted payments - some companies won't tell you your first month's payments are actually fees. So your money going to the credit counseling company and not your creditors. Missed payments mean bad marks on your credit report, which will last for years.

-Idealistic promises - no company will wipe out your debt for free without damaging your credit rating. Supervised payment plans involve systematically paying off your loans.

-No accreditation - agencies that aren't accredited by the National Foundation for Credit Counseling and/or Association of Independent Consumer Credit Counseling Agencies should be avoided. Accredited credit counseling agencies meet minimum standards for free or low-cost confidential services.

Bankruptcy laws give legal protection that most other debt-relief options don't; personal bankruptcy shouldn't be viewed as a last resort, but as a new beginning. Your own situation will determine if bankruptcy is the right choice for you. Let an experienced bankruptcy lawyer assess your financial needs and explain your options.

Continue reading "Those Considering Debt Solution Agency should speak with Modesto Bankruptcy Attorney " »