debt reduction
A Closer Look: Colorado Bankruptcy, Unemployment Track Decline
In this two-part series on Americans and debt, Denver debt-relief attorneys examine employment, foreclosure and bankruptcy trends across Colorado and the nation. While we are happy to report these three key indicators are all showing signs of recovery statewide, we also know that for many struggling Colorado families, the turnaround simply isn’t coming fast enough.
In their latest report, the Bureau of Labor Statistics indicates that 45 states, along with Washington D.C., each recorded unemployment rate decreases for the month of January, and that 48 states (District of Columbia included) registered unemployment rate decreases from a year earlier. In both instances, only New York saw an increase, while a handful of states saw no changes. Overall, the national jobless rate currently rests at 8.3 percent, down .8 percent since January 2011.
Across Colorado, the unemployment rate dropped one percent (from 8.8 percent in January 2011 to 7.8 percent in January 2012) during the last year. Between December 2011 and January 2012, Colorado ran second only to New Hampshire for over-the-month job creation with a gain of 19,500 jobs. The year-to-year comparison also showed modest growth of 43,400 jobs between January 2011 and January 2012.
A review of Colorado bankruptcy statistics published by the Administrative Office of the U. S. Courts indicate an ongoing decrease in the number of bankruptcy filings since reaching a peak in 2010. Between January and February of this year, there were 3,690 bankruptcy filings in Colorado. During the same time frame in 2011, records indicate there were 3,912 filings. Comparing the two captures: there have been 222 fewer filings in 2012.
The number of January-through-February Colorado bankruptcy filings since 2008 are as follows:
~ January and February 2012 bankruptcy filings: 3,690
~ January and February 2011 bankruptcy filings: 3,912
~ January and February 2010 bankruptcy filings: 4,050
~ January and February 2009 bankruptcy filings: 3,129
~ January and February 2008 bankruptcy filings: 2,493
Denver bankruptcy lawyers recognize that statistics indicating a bump in job growth and a decline in bankruptcy filings does not spell relief for the many families facing mounting credit card and other personal debt while fighting to stay out of a Colorado bankruptcy courtroom. At the Law Office of Jon B. Clarke, we bring decades of debt-relief experience and know how to help clients obtain a fresh start. To schedule a free consultation, call us at (303) 779-0600 today.
Blockbuster Movie Stores No Longer a Blockbuster Hit
Technological advancements have outmoded several activities that used to be a part of America’s history. Gone are the days when families used to huddle around the radio listening to the President speak. Gone are the days when friends would make a bag of popcorn and push a VHS tape into the VCR. And now, it seems as though the days when people would get in their car to go rent a Blockbuster movie are dwindling as well.
Blockbuster Inc. filed for Chapter 11 bankruptcy protection this past Thursday. The once prominent movie rental company is being put out of business because many consumers have begun streaming movies directly to their television through media sources like NetFlix. Redbox vending machines can be found all across the city that offer DVDs for a dollar, and more financially conscious movie watchers are taking advantage of the deal.
Through the prepackaged bankruptcy case that has been worked on since the early spring, Blockbuster plans to significantly reduce its debt. The company predicts that they will end with $100 million in debt as opposed to the $1 billion debt it held prior to filing for bankruptcy. CEO Jim Keyes stated to the press that “after a careful and thorough analysis, we determined that the process announced [Thursday] provides the optimal path for recapitalizing our balance sheet and positioning Blockbuster for the future as we continue to transform our business model.”
After competing companies began pulling many regular customers away from the Blockbuster stores, the company attempted to compete by adding some of the new technology to their marketing plan. They began an online streaming program and placed 6,600 “rental boxes” branded with the Blockbuster logo across the nation. The efforts did not have the impact the company had hoped, and Blockbuster was forced to close more than 1,000 stores over the past two years.
The company has been bought out by a number of investment funds that attempt to capitalize on failing businesses. And although the future of the company is unclear, Blockbuster Inc plans to keep their 3,300 stores open and plans to continue with its alternative internet and kiosk strategies.
Source: The Associated Press “Debt, changing media habits topple Blockbuster” Mae Anderson 9/23/10
NFL punter Ray Guy hopes to reduce debt by selling Super Bowl rings
The National Football League lock-out has recently come to a close and many out of work free agents are now able to get back to work, to sign agreements that will provide them with necessary income. Although most of the players’ lives will probably go back to normal without a hitch, the entire situation reminded us that even highly paid professional athletes fear job loss and struggle with financial worries.
One of the most famous punters of all time, Ray Guy who played for the Oakland Raiders for over a decade from 1972 to 1986 of his highly successful career has decided to sell his several Super Bowl rings in an attempt to clear some of his debt as he possibly plans to file for bankruptcy.
The former punter plans to sell the three rings that he received for his participation in several Super Bowl victories. The first ring is from his first Super Bowl XI appearance in which the Raiders defeated the Minnesota Vikings 32-14. The second ring was earned in Super Bowl XV when he helped his team beat the Eagles. The third and final ring was given to him after the Redskins lost to the Raiders in Super Bowl XVII.
Guy hopes to bring in somewhere between $75,000 and $90,000 for the three rings, the predicted value that was listed in the auction release. As of now, the highest bid is $6,727, but the punter hopes that the auction will have a better outcome than his dream of being inducted into the football Hall of Fame.
Source: CBS Sports, “Ray Guy bankruptcy forces Super Bowl ring sale?” Will Brinson, 1 August 2011
After a brief period of peace, families stress over household debt
After the initial shock of the mortgage crisis, the plummeting stocks and the stark beginning of the economic recession, families in Colorado and across the nation became feeling a sense of hope. In the fall of 2010, people across the nation began increasing their confidence about their personal finances.
The Associated Press conducted the same poll that found hope nearly one year ago and were surprised to find people wavering once again. Americans are feeling more financial strain and scrambling to find ways to reduce their debt and work with creditors to make repayment plans that make sense for them.
According to the poll, nearly half of Americans across the country say that their household debt is causing them stress. 20 percent of those polled even said that they are constantly worrying about debt, for some it is all of the time.
In 2009 and early 2010, Americans reported some of the highest levels of debt-related stress, and after a short period of peace, the numbers once again increased, this time 17 percent more reported experiencing the financial stress.
One of the surprising conclusions is that it is not necessarily those with the lowest incomes that are feeling the strain. Households with an annual income of $75,000 or more reported the largest amount of increased debt-related stress since the last poll in November of 2010.
A large part of the stress is due to the fact that families must continue to purchase necessary items like clothing and food and make monthly payments to keep a roof over their head, but with less income, they are forced to put the expenses on credit cards. The study found that over one third of those polled will not be able to pay off their next credit card bill.
Source: Winston-Salem Journal, “Personal debt fears increase, poll says,” 26 July 2011
Finding the Best Debt Resolution Option with a Colorado Bankruptcy Attorney
Having the vast majority of your debt eliminated and getting a clean, fresh start would seem like a highly favorable option, but filing a bankruptcy for eliminating debt isn’t always the best option. Many people consider pursuing a bankruptcy prior to considering the many other possible avenues of debt resolution because they believe that it will be the fastest and easiest way to get out from under a mountain of debt.
Prior to pursuing a personal or business bankruptcy it is critical that you speak to an experienced Colorado bankruptcy attorney to determine whether filing is a viable option for your situation. In many cases, an experienced Colorado bankruptcy lawyer may advise you to pursue another debt resolution effort, like negotiating with creditors, rather than attempting to file for bankruptcy protection.
A qualified bankruptcy attorney will thoroughly evaluate your financial situation and work to determine the best course of action for your unique financial situation. Bankruptcy is a very involved process that should be reserved as a last resort and pursued only when other debt relief options have been exhausted.
In order to get out of debt as quickly and with as few headaches as possible you need to make the most educated decision when it comes to your avenue of debt relief. If you’ve got financial problems you should immediately seek the help of a Colorado bankruptcy attorney in order to determine the best course of action for debt resolution for your unique financial situation.
Even the Arts Aren’t Safe From Bankruptcy
When most people hear the word bankruptcy they automatically think of an either an individual debtor who’s spending, for one reason or another, got the better of them, or a company that just couldn’t manage to stay afloat during the rough economic wasters. Unfortunately though, financial difficulties can affect anyone at just about any time, which has become evident by the rumors that the Philadelphia Orchestra is considering a vote as to whether or not to pursue a chapter 11 bankruptcy protection filing.
Financial problems can creep up fast and once things have started to go downhill they can get out of control reasonably quickly if the most appropriate action isn’t taken quickly. If you are experiencing personal financial problems or having money issues with your small business you should reach out to an experienced Colorado bankruptcy attorney as soon as possible to discuss your situation.
It can be very difficult to determine your most appropriate course of action on your own. Your first instinct may be to try to battle through your financial problems until you’ve reached greener pastures, but despite your best intentions that may not be the most effective way to resolve your debt.
By consulting with an experienced Colorado bankruptcy attorney you can see all of the potential options that may be open to you for clearing up your debt. You’ll be presented with the best possible information in order to make the most informed decision do you can begin working your way back to financial stability as quickly and painlessly as possible.
Evaluating your Unique Financial Situations with a Colorado Bankruptcy Attorney
Depending upon the specific details of your individual financial situation, some approaches to debt resolution may be far better than others. In order to determine the best course of action for your specific situation it helps to have your finances closely evaluated by a professional with extensive experience in matters of debt resolution.
You may feel as though filing for personal bankruptcy protection may be the only viable option for clearing up your debt, but depending upon the type of debt that you have a bankruptcy may not even be an option. After conducting an evaluation of your personal finances, a Colorado bankruptcy attorney will be able to provide you with a list of debt resolution options that are available to you.
Once your Colorado bankruptcy attorney has helped you determine the potential approaches for clearing up your personal debt you can discuss the pros and cons of each option in order to determine which may prove the fastest and most successful for eliminating your debt. By enlisting the help and following the advice of an experienced Colorado bankruptcy attorney you can ensure that you’ll avoid the potential pitfalls and wasted time caused by selecting an ineffective option for your debt resolution.
Making mistakes or ill informed decisions when attempting to rectify personal financial problems can result in greater debt. Instead of running the risk of making your financial problems more difficult to handle, reach out to a Colorado bankruptcy attorney to get the advice you need for embarking on the fastest path to debt resolution.
Bankruptcy Filings Down in US
The instances of bankruptcy filings have been climbing steadily for the last few years but statistics for the first quarter of 2011 appear promising. According to data from the National Bankruptcy Research Center and the American Bankruptcy Institute the number of filings through the course of the first few months of this year is 6% lower than that of the same time period in 2010.
While the small decrease in filings could be a sign of a brighter financial future for many Americans, there are still hundreds of thousands of Americans that are having financial problems. If you are one of the many Americans having trouble meeting your bills each month you should reach out to an experienced Colorado bankruptcy attorney in order to discuss your situation.
Financial problems can cause a tremendous amount of stress, but it’s important that you realize that there could be a number of options available to someone in your situation. A qualified Colorado bankruptcy attorney can help you to determine all of the debt relief options that may be available to you. By discussing your unique financial situation with an experienced professional you can get the advice that you need to help you make the best decision regarding your personal finances.
Taking action at the first sign of financial problems by reaching out to a Colorado bankruptcy attorney can help you to get on the right track to debt resolution. By following the advice of an experienced professional you can work to end the stress of your financial problems as quickly as possible.
Determining your Personal Debt Relief Options with a Colorado Bankruptcy Attorney
When the stress of personal debt begins to build and monthly bills become difficult or impossible to keep up with, filing a personal bankruptcy may seem like the most obvious choice for your debt relief. While you may have a basic understanding of how bankruptcy protection can help you to reduce or eliminate your financial stress, determining which bankruptcy would most effectively suit your situation can be fairly difficult to determine.
You may come to find, following a bit of research, that you’ve got more than one option available to help you resolve your consumer debt. At this point it becomes critical that you choose the path that will be most suitable for your individual level of debt in order to gain control of your finances again in as little time and with as few headaches as possible.
Finding the most appropriate path of personal debt relief is much easier if you enlist the help of an experienced Colorado bankruptcy attorney as early on as possible. A Colorado bankruptcy attorney will quickly be able to determine what courses of action are available to someone in your financial situation and outline the specific details of each individual option.
By enlisting the help of a Colorado bankruptcy attorney you can feel confident that you’ll be embarking on the most logical and easiest course of action in order to relieve your personal debt and that you’ll be on your way to living free of the burden of your consumer debt in as little time as possible.
Borders bookstore uses Chapter 11 protections to regain stability
About a month ago, our blog conveyed a report from the Wall Street Journal stating that Borders Group, Inc. was petitioning for Chapter 11 bankruptcy protection. The popular bookstore company has fallen on hard-economic times after increased competition from electronic readers such as Amazon’s Kindle and the Barnes and Noble Nook drove consumers away from traditional booksellers. After Border’s own attempt to enter the electronic market fell short of expectations, the company decided to restructure its debt under Chapter 11.
Now, an optimistic new report from the Wall Street Journal indicates that Borders Group, Inc. is hoping to leave bankruptcy protection by the end of summer 2011. After filing under Chapter 11, Border’s was able to negotiate a new payment plan with creditors, streamline its operations and cut costs while still remaining in business. The report from the Wall Street Journal signifies that the company’s efforts are paying off.
Border’s executives have scheduled a meeting with a number of creditors and publishers for early April, in which they plan to present their new and improved business plan for the future of the company. The goal is to exit Chapter 11 in time for the sales increase which normally accompanies the fall and winter holiday seasons.
The company is currently in the process of closing approximately 200 stores, several of which are located in Colorado. The President of Borders stated that, depending on landlord negotiations, as many as 75 more locations may be closing in the near future. However, even after these closures, the company will still own over 400 operating locations across the nation.
In an economic climate which has not been kind to retailers, Borders Group, Inc. may become a successful example of how companies can use the advantages offered under bankruptcy protection to pull themselves out of financial ruin.
Source: Authorlink News, “Borders Hopes to Exit Bankruptcy By Summer.” 14 March 2011.
5 Rising Costs on Everyday Goods Affecting Consumers in 2011: Part 2
In our last post we mentioned the first two items out of the top five rising costs that will affect consumer spending in the New Year as families look to save money, reduce their debt or even avoid having to file for bankruptcy. In this post, we continue with the remaining three.
3. Taxes:
As budget is a sensitive point in many households, it is definitely a focus in state and federal discussions as well and taxes on products like cigarettes and even bottled water are one of the easiest ways to generate added revenue.
4. Service Costs:
Airlines, banks, telecommunication companies and other service providers have been struggling in the economy as well. The cost of a barrel of crude oil has increased by approximately eight dollars and as it costs more to fuel your car, it costs airlines a lot more to fuel their jets. The major commercial airlines raised the cost of a single ticket at a record rate this past Monday, and even Southwest Airlines, the corporation who boasts having the lowest fares was forced to follow in their competitors’ footsteps only a day later.
New government regulations and restrictions on things like overdraft fees have forced banks to restructure their operating procedures and business plans in order to generate revenue lost as a result of the legislative changes. One solution has been to raise general fees on checking accounts or ATM withdrawals that affect a larger percentage of their customers.
5. Jobs and Jobs:
Although jobs are not a normally thought of rising cost, they affect a consumer’s ability to spend. The unemployment rate continues to waiver at a high level making consumers uneasy about spending their money in the event that something happens with their job. It is not a far stretch to say that consumer confidence is at a significant low.
Source: MarketWatch “7 reasons why consumers won’t spur a recovery” Jennifer Waters 1/19/11
5 Rising Costs on Everyday Goods Affecting Consumers in 2011: Part 1
Economic recovery is a topic on a lot of people’s minds these days whether they are government officials, lawmakers or average citizens living in the country. Consumers are often turned to as a way to help assist the recovery; when consumers are spending, business are thriving, etc. However, as many households struggle to reduce their debt and save money or in some instances even simply avoid bankruptcy, the costs of everyday goods are making their goals more difficult.
Although experts say inflation remains in check, the costs of smaller items and services are on the rise and will continue that trend into 2011. Of those rising costs, there are 5 major ones that will affect the everyday budgeting of most families in America.
1. The Cost of Food:
According to the Consumer Price Index, grocery store goods rose 1.5 percent in price last year and restaurant costs jumped approximately 1.7 percent. As commodity prices rise, the major food producers pass those costs along to consumers. Many major producers last year decreased the amount of discounts offered and instead increased their prices. If you choose to go out to eat in 2011, according to a Nation Restaurant News survey, 60 percent of your restaurant choices will cost a little more than last year.
Throw in with the cost of food, the cost of several smaller grocery related products affected by other escalated prices. The cost of raw cotton will make the price per unit of things like coffee filters, books or clothes made out of it rise as businesses struggle to make a profit.
2. Energy Prices:
As you fill up your car this year, do not be surprised if you notice a continued incremental increase. In fact, overall energy prices rose 7.7 percent last year and experts say it is not going to stop.
Check back in the next posting for the remaining three items on the list.
Source: MarketWatch “7 reasons why consumers won’t spur a recovery” Jennifer Waters 1/19/11
Americans May be Aware of Debt, But Research Shows We Have not Stopped
Americans during this economy have become extremely aware of the fact that the country is in debt, and even more so, a significant number of individuals have felt the financial strain. Even while the income that a lot of people bring in each month is barely enough to cover the necessary bills, one study shows that Americans have again begun to slip further into individual debt.
American citizens have collectively experienced a $6.5 billion increase in the amount of credit card debt accumulated in the past quarter year. According to CardHub.com, most of the debt calculations fail to include the amount of debt that banks have charged off. Researchers took a second look at the data reported by the Federal Reserve and found that in the past few quarters, banks had charged off about 8.5-10.9 percent of their debt, and when debt is in the millions, that amount can be extremely large.
CEO of CardHub reported that “the alarming part is in this quarter, Americans got $6.5 billion more in debt, and if you look at the increase in debt between the second and third quarter combined, that’s 11% higher than the increase last year.” Researchers cited the fact that Americans had managed to reduce a portion of their debt in early 2009 and 2010, but that as the year went on, debt repayment was down 9 percent.
Predictions made based upon the report estimate that by January 1, Americans will have completely canceled out the debt repayment progress they made in the past couple years.
Source: Wallet Pop “Research Shows We’re Digging Ourselves Back Into Debt” Martha C. White 12/8/10
Developer of 21,400 Acre Colorado Springs Ranch Files for Chapter 11
The plan for Banning Lewis Ranch in Colorado Springs, Colorado dates back to the 1960s, but continues to await completion. In 1988, the property that covers a significant portion of the east side of Colorado Springs was annexed by the city. Ownership of the 21,400 acres was bought and sold by a number of investors until the Banning Lewis Ranch Co. LLC and its subsidiary, Banning Lewis Ranch Development I & II LLC purchased the property and began construction in 2007.
As the housing market began to decline, so did the funding and support for the ranch and Banning Lewis Ranch Co. LLC and the subsidiary were forced to file for Chapter 11 bankruptcy. The company hopes to restructure their debt through the bankruptcy process and continue operation of the project into the future.
Mayor Lionel Rivera believes that the community project will “move forward” into the future as the city continues to expand. Plans for the project include the prediction that 75,000 residences will be built that can house approximately 180,000 people. The predictions are far from realization as only 200 families currently live on the property and only 50 more homes have completed closings.
Over $75 million has already been spent to prepare the area for housing development by adding roads, water and sewer lines and the company owes approximately $242.4 million to six different creditors. The subsidiary company owes $186.7 million to 20 of its larger creditors. Although the city’s $880 million water delivery pipeline was going to be accessed by the ranch development, the city assured its taxpayers that the pipeline was planned to serve a number of other developments as well.
Source: The Gazette “Banning Lewis developer files Chapter 11 bankruptcy” Wayne Heilman, Andy Wineke and Rich Laden 10/28/10
FTC Announces New Regulations that Protect Debtors
If you have watched even an hour of television or spent time surfing the internet in the past few months, you have surely seen the credit card debt consolidation adds promising to seriously reduce your debt. Some even claim that they can get rid of it completely. Some, but not all of these companies are scam artists who prey on debtors in need of assistance. It is near impossible to tell the difference between a legitimate debt relief program and a con artist.
New Federal Trade Commission regulations are in the works to help protect consumers. The new regulations will come in two phases; the initial changes are set to take effect on September 27, 2010. “The timing of these changes is important because the still struggling economy means that many Americans and families remain in financial peril,” said Brad Stroh the CEO of one reputable online financial resource. “Consumers will now have substantial and important protections in place to ensure that they are not taken advantage of by predatory debt relief providers.”
Phase one of the new regulations addresses how debt relief products are marketed to consumers. Debt service providers will be required by law to disclose the possible negative ramifications debt settlement may have and give accurate assessments of how long it may take before the consumer will realize possible results. Stricter regulations concerning factual misrepresentation will also be implemented. Debt consolidation companies will have to truthfully disclose the program’s success rate, procedures and material features.
Phase two will address the problem many debtors have faced when they pay an upfront initial fee and little to nothing is done afterwards to decrease their debt. On October 28, 2010, the debt relief companies will not be able to charge any fees until some progress has been made on their account in the form of either interest rate or principal reductions from creditors.
Debt settlement can be a frustrating and complicated process when undertaken on your own. If you find yourself facing a large amount of debt, consult a bankruptcy attorney who can protect your interests and rights throughout the debt consolidation process.
Source: ConsumerAffairs.com “New Debt Consolidation Rules Take Effect Soon” Mark Huffman 9/22/10