debt relief
A Closer Look: Colorado Foreclosures In Decline
In this second part of a two-part series on Americans and debt, Colorado debt-relief attorneys examine foreclosure trends across the state. In an earlier post to our Denver Bankruptcy Attorney Blog, we noted that Colorado ran second only to New Hampshire for over-the-month job creation in January, and Colorado bankruptcy filings have hit their lowest number since 2009.
In tandem with Colorado bankruptcy and unemployment numbers, foreclosure rates across the state are also dropping. The Colorado Department of Local Affairs reports that Colorado foreclosure filings are now at the second-lowest level reported since 2006, hopefully indicating some “true stability” in Colorado housing markets.
Data tracking quarter-to-quarter foreclosure rate comparisons for 2010 and 2011 show evidence of a decline, as follows:
~ Second quarter (2011) number of foreclosure filings: 7,233
~ Second quarter (2011) number of sales at auction (completed foreclosures): 5,333
~ Second quarter (2010) number of foreclosure filings: 10,233
~ Second quarter (2010) number of sales at auction (completed foreclosures): 5,887
Year-over-year second quarter comparisons indicate that in 2011:
~ foreclosure filings were down 29.4 percent with 3,000 fewer filings, and sales at auction (completed foreclosures) were down 9.4 percent with 554 fewer sales at auction.
According to the report, the drop-off in the total number of foreclosures has been attributed, to some degree, to the suspension or of many foreclosures in response to the so-called “robo-signing” controversy. While the initial slow-down spanned just October and November 2010, the legacy of that episode continues to affect the speed of the foreclosure process statewide. It is further believed that job growth and a continue surge in the national economic outlook also play a role in the drop in foreclosure filings.
With that said, the Denver Post is now reporting that thousands of Colorado homes are believed to have been lost to foreclosure in association with the controversy. And a second Denver Post report shows conflicting foreclosure rates from the Colorado Division of Housing and RealtyTrac indicating that for Colorado homeowners, the foreclosure nightmare is far from over.
If you are dealing with a Colorado bankruptcy or debt-related issues, contact the Law Office of Jon B. Clarke today to schedule a free consultation.
U.S. Government discusses plans for refinancing mortgages to relieve debt
The economy has been more than just the topic of the day, the week, the month, the year; the economic struggle felt by the government, businesses and individuals across the nation has been a serious stressor. Everyone is scrambling to find ways to relieve debt and look for alternatives to filing for bankruptcy.
One of the major problems during the recessed economy has been the real-estate market. The number of homeowners with upside-down mortgages is at a record high, and according to government resources, something that they need to fix in order to spur a boost in the overall economy.
There are rumors that the Obama administration has been considering a new plan that would help a greater number of homeowners with government-backed properties reduce the interest rate on their mortgage to a rate of about 4 percent. Because there is only discussion, the details of the proposed plan remain unknown, for example who would be eligible, would it include mortgages that are already in default?
A broad sweeping refinancing plan seems appealing to many economists because it allegedly would not increase the national deficit but would help reduce the $700 billion homeowners across the country owe above the value of their home.
If you are someone who is struggling to make their mortgage payments and want to take advantage of programs like the one that could be offered here, the best option is to talk to an attorney who can help you determine eligibility and what plan of action would be best for you and your financial future.
Source: The New York Times, “U.S. May Back Refinance Plan for Mortgages,” Shaila Dewan and Louise Story, Aug. 24, 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
Why do people carry substantial credit card debt?
People suffer from overwhelming debt for many different reasons. Even though they may have good intentions about resolving their debts, sometimes people get discouraged if they do not see immediate progress. Certain factors may prohibit people from getting out of debt, such as when a job is lost, or if medical expenses become necessary.
Other people are persuaded, however, by believing that carrying substantial debt is normal. The following are other reasons why people may hold on to a significant amount of debt instead of seeking ways to resolve that debt:
- They spend beyond their means. The old adage, “the more you have, the more spend” certainly seems to ring true in many cases. Sometimes having a slightly higher income causes people to believe that they can spend more than they should. The people with the highest debt levels often have the highest income levels as well.
- They believe that they will need a windfall to pay off debt. Many people’s debt is so massive, the only way they can imagine paying it off is by inheriting a windfall, such as by winning the lottery or by inheritance. However, this does not have to be the case, especially if bankruptcy is used as an option.
- They operate on the belief that credit cards help build credit. While good credit is earned by borrowing and paying off balances on time and in full, carrying large loads of credit that you can barely make payments on is not a good financial strategy. In order to avoid getting into financial trouble, spend cash on purchases whenever possible.
Today’s culture has certainly convinced many that living on credit is okay. If you have been a victim of this theory and have acquired substantial debt, this does not mean that you are a bad person. If you recognize that your finances have gotten out of control, you should seek help to get out of debt. Bankruptcy can be an option. Once debt is eliminated, you will be given the opportunity to learn how to live within your means and live a debt-free life.
Source: NewsChannel5.com, “6 myths of financial independence,” Andrew Housser, 6 July 2011
Know your rights-don’t become a debt collector harassment victim
One of our previous blog posts talked about the extreme measures debt collectors use to hound people with outstanding debt. Experts believe that many of these tactics border on harassment and may even be illegal. In this rough economic climate, anyone can fall into financial trouble and seek bankruptcy protection or debt relief. Simply having outstanding debt does not make someone a criminal, which is why debtors are granted certain federal protections under the Fair Debt Collection Practices Act (FDCPA).
The nonprofit organization Privacy Rights Clearinghouse is an advocacy group that helps consumers figure out how to manage aggressive debt collectors. Privacy Rights Clearinghouse provides a list of tips that consumers can use when dealing with a debt collector for the first time.
One of the upmost pieces of advice offered by the organization is to make sure you understand exactly why a debt collector is calling you. Are you actually behind on your payments to a creditor or has there been some confusion within the debt collection agency. Furthermore, is it possible that an identity thief has hacked into your personal information and racked up debt under your name? Knowing the details of your specific situation is vital to eventually getting the collector off your back.
Privacy Clearinghouse also stresses that debtors should keep a record marking each time they are contacted by a collection agency, including dates, names, and details of the conversation. Carefully documenting a debt collector’s actions and words could help bolster your harassment case later on. Make sure to especially note any abusive or inappropriate language used by the collector.
Finally, the organization encourages consumers to never pay a bill if they don’t agree with the charges. In effect, by agreeing to pay the bill individuals are accepting responsibility for the debt and will therefore find it much harder to challenge the payment later on.
These are just a few of the tips available to potential debt collector harassment victims. If you find that your debt has become too overwhelming and you need some financial assistance, a bankruptcy attorney can discuss your options and help you protect your rights.
Source: Privacy Rights Clearinghouse, “Debt Collection Practices: When Hardball Tactics Go Too Far.” Last revised January 2011
Bankruptcy Rates are Down but Residents of Many States Still Struggling
Bankruptcy filings in April dropped from the number of filings in April of 2010 and there were ten thousand fewer filings in April as there were in March of this year. This is a good sign for the country as a whole but, despite the continuing downward trend, some states are still far above the national average.
The national average of bankruptcy filings per one million adults is around 2,000 but the average in Nevada is more than twice that in Nevada and more than one and a half times that is a handful of other states. These statistics show that Americans in many states across the country, including Colorado, are still having difficulty managing tough financial situations.
If you are experiencing financial problems you shouldn’t wait to take action and begin to formulate a plan to resolve your debt and work to get your finances back in order. Reaching out to an experienced Colorado bankruptcy attorney should be your first step when trying to figure out the best possible method for rectifying your financial problems.
An experienced Colorado bankruptcy attorney will carefully analyze your financial situation to determine what options may be available for resolving your debt. If you address your financial problems early on instead of waiting until the problem has grown out of control there is a good chance that there will be many possible options open to you for debt resolution. Your experienced Colorado bankruptcy attorney will help you identify the most appropriate method of debt relief so you can immediately begin the process of repaying your creditors and becoming debt free.
Bankruptcy: All Over the News
It isn’t just major and minor retailers that are filling the headlines with news of pending or active bankruptcy protection filings – celebrities, towns and entire states are talking about the possible benefit of filing for bankruptcy protection. With so many individuals, companies and organizations initiating a bankruptcy filing in order to clear up their financial troubles it’s only natural to feel as though filing for bankruptcy may be the best route for you to follow in order to get out of your financial troubles.
In reality though every person’s and business’ financial difficulties are unique and just because others who have had financial issues reminiscent to yours have repaid their creditors or absolved their debt with the help of bankruptcy it doesn’t necessarily mean that bankruptcy is the correct choice for you. If you are having financial problems you should reach out to an experienced Colorado bankruptcy attorney in order to determine the most suitable course of action for your situation.
A Colorado bankruptcy attorney will closely evaluate your level of personal or business debt in an effort to find all of the potential relief options available to someone in your situation. By providing you with a wealth of information on a number of different debt relief options your Colorado bankruptcy attorney can help you find the single best option for your unique financial situation. With the help of a Colorado bankruptcy attorney you can feel confident that you are embarking on the right path toward debt relief and that your financial problems will soon be resolved with as few headaches as possible.
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.
Many Still Struggle Despite Decrease in Bankruptcy Filings
A decrease in bankruptcy filings through the first quarter of 2011 has led many experts to believe that the country is finally beginning to fully bounce back for the difficult financial times that occurred over the course of the last few years. Unfortunately though, despite a drop of nearly 15% in filings, several small businesses and families are still struggling severely with excessive debt.
Just because the nation’s economy may be on the rebound, it doesn’t necessarily mean that your personal or business finances will automatically rebound as well. If you are experiencing problems with your personal or business finances you should immediately schedule a consultation with an experienced Colorado bankruptcy attorney to discuss your situation.
A Colorado bankruptcy will be able to quickly decipher your complex financial situation to determine any and all possible options that you may be able to take to get out of debt. Your Colorado bankruptcy attorney will clearly define all of the positives and negatives of each route that is available to you in order to help you determine the most direct path to rectifying your debt.
Dealing with personal or business financial problems can be very frightening. Having a qualified Colorado bankruptcy attorney on your side can help you to navigate the confusion and begin working toward an improved financial status with a few headaches and hassles as possible. If you are experiencing difficulties with your finances and want to be able to sort things out as efficiently as possible you should contact a Colorado bankruptcy attorney today.
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 Bankruptcy Eligibility with a Colorado Bankruptcy Attorney
Just because you are felling the mounting pressure of financial distress, it doesn’t mean that filing bankruptcy is the best option for your situation. In fact, depending upon what type of debt you are suffering from there is a chance that filing personal bankruptcy wouldn’t even be an option that was available to you.
There are a number of types of debt that are not dischargeable under a personal bankruptcy. If the majority of your financial burden is caused by these debts, which can include child support payments, medical bills, student loans, etc., there would be little relief available from filing a personal bankruptcy.
In order to determine what debt relief options may be available to someone in your financial situation, you should reach out to an experienced Colorado bankruptcy attorney. Even in cases where the bulk of your financial problems are being caused by debts that are not dischargeable under bankruptcy, a Colorado bankruptcy attorney will still be able to help.
Your Colorado bankruptcy attorney will assess every aspect of your personal financial situation including all secured and unsecured debt, level of income and assets in order to determine what course of action would be the most suitable for you. If you are ineligible for personal bankruptcy of if a personal bankruptcy would do little to help in your situation your Colorado bankruptcy attorney can suggest bankruptcy alternatives and possibly help to negotiate with your creditors to provide some financial relief. Regardless of the individual circumstances of your personal financial problems, consulting with a Colorado bankruptcy attorney is one of the most effective ways of selecting the right debt relief option and beginning to work your way toward being debt free.
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.
Men avoid seeking debt advice until problems build, says new study
Apparently the old antidote about men not being willing to ask for directions may be true after all. A new study commissioned by the group Money Advice Trust found that the majority of men consider seeking help or advice to be a female role, and not only when it comes to directions. The study specifically found that men are much less likely than women to ask for help managing their finances and consolidating debt.
The study confirmed what many in the debt relief industry may have already guessed from practical experience; men often find themselves in greater financial trouble than women as many avoid seeking debt counsel until creditors are knocking on their door. When debt begins to build up, it’s important to address the problem immediately instead of waiting until it becomes too large to ignore. Money Advice Trust wanted to understand what factors prevent men from seeking professional debt relief advice and how these obstacles could be removed.
Researchers noted that one reason men in the study felt less inclined to ask for debt advice was because they maintained a positive attitude regarding their financial problems longer than the average female participant. Overall, men were significantly more optimistic that they could resolve their economic struggles without professional help.
The study also discovered that male participants placed high value on feeling in control of their debt issues. For many, handing their finances over to a third party advisor would mean sacrificing this sense of control and relying on another person’s expertise.
Some men also simply did not understand the numerous debt relief options available. They tended to view debt consolidation companies suspiciously and didn’t know how to find out which organizations are trustworthy and legitimate.
When anyone, male or female, ignores their debt issues, the bills will simply continue to pile up. Contacting an attorney who can help secure bankruptcy protection or pursue a debt relief plan may seem like an intimidating step, but it is well worth the effort to protect your future financial stability.
Source: UKPA, “Men ‘less likely to seek debt help.’” 27 March 2011.
FTC lays down new regulations for debt relief companies
Families, individuals, and business owners who find themselves overwhelmed by debt can quickly become desperate for a solution to their financial woes. As credit card bills and late payments begin to pile up, tantalizing promises from debt relief companies to easily and rapidly remove a large portion of a person’s debt may sound too good to be true. According to the Better Business Bureau and the Federal Trade Commission, many of these promises probably are.
A report from Better Business Bureau recently asserted that more than 6,000 complaints were lodged against companies specializing in debt relief during 2010. Many unsatisfied customers believed that the debt relief agencies which promised to help them get their finances under control actually lured them into agreements which ended up increasing their total debt. There are many ways to seek relief from overwhelming debt, including bankruptcy protection. However when consumers decide that they would like to purse an alternative to bankruptcy, they need to be careful about which debt relief companies they trust with their finances.
In light of the numerous complaints about corrupt, misleading and inefficient debt relief agencies, the Federal Trade Commission recently released new industry rules meant to better protect American consumers seeking financial help. One of the new rules requires debt relief companies to be more transparent with their customers by providing information regarding the total cost of the process, any potential negative consequences which could arise from the program, and when the consumer should begin to see improvement.
Other regulations prevent a debt relief company from charging a customer before creating a contract and creating debt settlement accounts with affiliated establishments.
The Federal Trade Commission hopes that these regulations will prevent certain debt relief agencies from taking advantage of American consumers. If consumers have any doubts regarding a debt relief company’s legitimacy, The Better Business Bureau provides a space on its website where people can investigate an agency’s past complaint record.
Source: Business West, “Red Flags: Separating Hype from Reality on Debt Relief.” Joseph Bednar, 15 March 2011.