Debt Consolidation/Relief Part 1 of 2

Hardly a day goes by without seeing on television, or hearing on the radio, a commercial for “debt consolidation” or “debt settlement” services. Often, the ad includes a statement to the effect that if you owe more than $10,000.00 in credit card debt, you have the “legal right” to settle for less. Further, [...]

Chapter 13 Bankruptcy: Individuals

Chapter 13 is a repayment bankruptcy.  It is utilized by individuals, and owners of sole proprietorships or other “mom and pop” businesses, not only to obtain a fresh start, but also to retain their assets and reorganize their financial affairs.
For most individuals with debt problems, the major decision is whether to file for protection [...]

Foreclosure Prevention Resources

To supplement our series for Distressed Homeowners, I found some resources to help preserve home ownership, avoid foreclosure, and protect against foreclosure and debt elimination scams.
Before you work with a firm that claims it can help you “rescue” you from foreclosure be sure to familiarize yourself with:

Foreclosure “rescue” and refinance fraud
Fake “government” modification program
Leaseback/rent-to-buy schemes
Bankruptcy [...]

NC Foreclosures

The highest rates of foreclosure in North Carolina are in the urban (Wake, Guilford, Mecklenburg) and surrounding counties (Union County in particular), and in the mountains (Caldwell County, etc.), where investment property was marketed like this…

Surviving USAirways Layoffs & Furloughs

Charlotte has fared better than other cities at the hands of USAirways, but it hasn’t been easy for those who’ve been laid off, furloughed or left doing the work of their former coworkers.
CEO Doug Parker says analysts predict the airline will lose $600 million this year and obviously such losses are untenable. Management will continue [...]

Speaking on Business Bankruptcy

Unfortunately, lawyers have a reputation for being “all about the money.”  Few people realize the pro bono (free) work so many of us do for those unable to pay.  This week my partner Rick Mitchell and I will be speaking (for FREE) in Charlotte on business bankruptcy for NC LEAP , the premier provider of [...]

Loan Modification News

USAToday reported on the impact of loan modifications on credit scores this week. Selected paragraphs:
A growing number of cash-strapped consumers are working with lenders to modify their mortgages so they can stay in their homes. But these modifications could wreck consumers’ credit.
A modification is typically a change in loan terms. Usually, the interest rate is [...]

Mortgage Modification Trends

A USA Today story analyzed trends in mortgage modifications, finding that some homeowners who were hoping for lower payments are facing modifications that rolled late fees, back taxes or other costs into the principal.
End result? What started out as a difficult payment is now an impossible one. The story noted that this is one reason [...]

Lessons from Reader’s Digest

Reader’s Digest just announced that it is filing a prepackaged Chapter 11 bankruptcy case.  Its goal is to reduce its debt to one-fourth of the present level ($2.2 billion).  The company is essentially using Federal bankruptcy law as a financial planning tool.
At the present level of debt, Reader’s Digest is not a viable company.  At [...]

Small Businesses and Credit Cards

Since our firm is a member of the Better Business Bureau, I read the BBB’s weekly updates.  This week the BBB recommended an article on small businesses and credit cards that got my attention because it mirrors what we see with our small business clients who come in for credit card counseling and bankruptcy counseling.
Wisdom [...]

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