Total Bankruptcy

Nevada Senator Calls for Renewable Energy in Housing Bill

Nevada Senator John Ensign (R) has raised a fuss that may be delaying the housing bill being considered in the Senate currently. The bill is Congress' most comprehensive and ambitious response to the housing crisis, offering the chance for nearly 400,000 homeowners to trade mortgages with skyrocketing interest rates for fixed-rate packages with government-backed loans.

Ensign, however, wants none of the bill if it doesn't include a proposed amendment to add $6 billion in tax breaks encouraging renewable energy renovations and implementations for homes. While many Democrats approve of measures to increase use of renewable energy, they oppose Ensign's bill, which does not pay for itself. His proposal would likely languish in the House of Representatives, where a majority of Democratic representatives have pledged not to vote for bills that would increase the deficit.

It remains to be seen whether Ensign's one-man battle can last long. Senate Majority Leader Harry Reid, Ensign's counterpart from Nevada, expects the housing bill to be voted on early next month.

Five Steps to Debt Elimination

The Federal Reserve reported last month that consumer debt in March rose by $15.3 billion, which was more than double the rate predicted. Credit card issuers are reporting record-high late payments and many Americans are searching for a way out of debt.

While there's no magical pill that will end your debt, there are key steps you can take to eliminate your financial obligations and establish a debt-free way of life. Check out Total Bankruptcy's steps for getting out of debt.

Later this week, we'll discuss and explain some specific methods for eliminating your debts (especially credit card debt!). Check back for tips on Snowballing debt and more.

June 20th Total Bankruptcy Updates

Signed any credit card agreements recently? Thinking about getting some new plastic? Before you put your John Hancock on that dotted line, check out Total Bankruptcy's page on understanding arbitration clauses, which are part of many credit card agreements. Knowing what to look for could save you money down the line!

Same-sex marriage has been legalized in California, but many people don't realize the impact this could have on newlyweds in the state. Learn why gay spouses may not be eligible for the same bankruptcy protection as their straight counterparts.

BAPCPA-mandated debtor education programs got a good review from bankruptcy filers in a recent survey: read more about the 97% positive rating bankruptcy filers gave.

For the latest bankruptcy news around the United States, check out Total Bankruptcy's articles section each week!

This Week from Total Bankruptcy

The economy's still struggling and more companies were forced to lay off employees in the past week. Check out the most recent events, reported in Total Bankruptcy's latest Mass Layoffs update.

Worried about identity theft? Find out what companies reported data breaches this week to know whether or not your personal information is at risk!

And speaking of identity theft, did you know you could be targeted through your medical records? Turns out, medical identity theft is a growing threat to Americans. Total Bankruptcy has the facts you need to protect yourself.

Tennessee Leads the Country in Bankruptcy

A new report by the Federal Deposit Insurance Corp. indicated that the number of people in Tennessee who filed bankruptcy during the first quarter of 2008 was more than twice the national average. More people in Tennessee are filing bankruptcy than in any other state in the country although the number of people filing bankruptcy is up more than 25 percent nationwide.

Across the country, during the first quarter of 2008, three out of 1,000 people filed bankruptcy. In Tennessee, more than six people per 1,000 filed bankruptcy in the first quarter.

WorldNow News reported that although Tennessee leads the nation in filing bankruptcy, it also leads the nation in Chapter 13 bankruptcy, which allows debtors to pay creditors back according to a schedule.

Detroit Foreclosures Become Farmland

The strategies for dealing with a foreclosure on an individual basis are often little understood; yet, an even less understood phenomenon is how neighborhoods deal with a rash of foreclosures. Of course, abandoned homes that are untended start to reflect poorly on a neighborhood if enough of them accumulate. A glut of foreclosed homes can even begin to lower property values in a neighborhood.

According to an NPR report, a group in Detroit called Urban Farming is taking a new approach to abandoned properties by tilling and planting the unused land, turning the spaces into urban gardens for food products. The group has worked with Wayne County to recycle, in effect, 20 plots in a pilot program that could expand if all goes as expected.

Just another creative way that people are dealing with the lumbering economy....

Favorable Changes in South Carolina Bankruptcy Law

More people in South Carolina may begin filing bankruptcy because of a new state bankruptcy law. Some consumers who owe a large amount of credit card debt may have previously avoided filing bankruptcy due to income restrictions or for fear of losing their vehicles.

Under the revamped bankruptcy law in South Carolina, more people will be eligible to file bankruptcy while keeping their cars and other property out of the reach of bankruptcy trustees.

To read more about the changes in the bankruptcy law in South Carolina see:

Bankruptcy Now Easier in South Carolina

Bankruptcy Filings up Nearly 31 Percent

Despite the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that went into effect on October 17, 2005, the number of consumers and businesses filing bankruptcy is on the rise. BAPCPA increased the fee to file bankruptcy and placed tighter limits on the income of those who are filing bankruptcy, but aside from a brief decrease in bankruptcy filings at the end of 2005, has done nothing to slow down the number of people and businesses who find that filing bankruptcy is their best option.

According to data from the National Bankruptcy Research Center, U.S. consumer and business bankruptcy filings were up by 30.9 percent nationwide in May as compared to the same time period a year ago. The overall number of people filing bankruptcy is still lower than in 2006 when 1.8 million people filed bankruptcy, but with the nation's poor economy and the sharp rise in food and gas prices record numbers of consumers and businesses may soon be considering filing bankruptcy.

For more information read: Filing Bankruptcy is an Increasingly Popular Option

Free Credit Scores for Six Months

TransUnion has recently settled a lawsuit with several disgruntled credit users and you can reap the benefits. As part of the settlement, TransUnion will be offering free credit SCORES for six months, beginning in mid-June.

As you may know, free credit REPORTS are available at annualcreditreport.com, but learning your credit score costs money.

As the settlement website explains, final details are not yet available, but will emerge soon. Visit Total Bankruptcy for updates and details on how to take advantage of this exciting offer.

Ever Heard of an "Application for Debt"?

How we talk about credit goes a long way in revealing our attitudes toward using it responsibly. From Urban Word of the Day comes a new term to describe the junk mail flood of credit card applications.

Application for Debt:
An of offer of credit from a financial institution.
Wife: What did we get in the mail today?
Husband: Just an Application for Debt.

The original definition can be found on the Urban Dictionary. For more serious definitions of common bankruptcy terms, visit the Total Bankruptcy Glossary.

New Century Signed Contracts Limiting Number of "Bad Loan" Rejections

An NPR report on the mortgage crisis detailed how investment banks willingly and knowingly accepted bad loans--to the extent that they had hard numbers on what to accept and what to reject. Economist Dean Baker has the gory details:

According to its report, one investment bank had a contract with New Century, a leading issuer of subprime debt, that it would reject no more than 2.5 percent of its loans. Of course, such a contract would be an invitation to submit bad loans.

With the 2.5 percent cap, it would have been easy for New Century to push through bad loans along with good ones, knowing that any investment bank would stop rejecting any loans past this point. The profits to be had from selling these bundled mortgages overshadowed any caution that might have helped restrained this epidemic; in fact, New Century and its investment partners not only condoned, it seems, but actively encouraged these bad mortgage loans.

Much more on the foreclosure crisis is available at Total Bankruptcy, including a helpful predatory lending glossary.

Consumer Credit Skyrockets in March

The tough outlook for the economy has made many consumers feel the ill effects and caused them to make many changes in their day-to-day life. But according to new figures made available, via Bloomberg.com, many aren’t quite ready to give up the affluent lifestyles to which they have grown accustomed.

According to these statistics, U.S. consumer borrowing more than doubled what was forecast for the month of March. Instead of the $6 billion that economists predicted for the month, consumer credit leapt to $15.3 billion. Compare that to February, in which credit rose by $6.5 billion, and you’ll note the severity of the swerve upward. It marks the last month in a quarter that saw consumer credit as a whole rise by $34 billion, the most since the first quarter of 2001, which was not coincidentally the last recession into which the U.S. entered.

Experts point to new, tightened lending standards for home-equity loans as one culprit—in addition to the general recession—that is causing consumers to turn to credit in credit cards and the like. With home prices dropping and potential to drop many more percentage points in the upcoming months, perhaps this latest shock will force economists to adjust their predictions in the second quarter and beyond.

For more on credit and foreclosure, visit the articles section at Total Bankruptcy.

Another Unintended Consequence of the Foreclosure Crisis

The San Jose Mercury News is reporting that local health officials are worried about the potential for disease epidemics like West Nile Virus carried by mosquitoes. And where would mosquitoes carrying the deadly disease be likely to breed in record numbers?

The swimming pools of foreclosed homes.

A Santa Clara County official remarked "One of the first things to go bye-bye for a resident in foreclosure is pool maintenance. It's a drain on their resources." To discover places where mosquitoes might breed, the county is flying a survey plane looking for telltale signs of pool neglect in homes without the county limits.

Santa Clara County had four reported cases of West Nile virus last year, though none so far this year. And with record foreclosures hitting California, their concern is real and demonstrates how far the foreclosure crisis will impact the United States in ways that we haven't begun to see yet.

Supreme Court Ruling Modifies Bankruptcy Law

The U.S. Supreme Court approved amendments to the Federal Rules of Bankruptcy Procedure on April 23, which are generally speaking a rubber stamp on rules implemented by bankruptcy courts across the nation in August 2005 as a result of BAPCPA.

Congress must vote on approval of these measures in order to enact them as laws, and doing so would finalize the rules from their current provisional state.

You can read the Supreme Court decision here.

For more on the bankruptcy rules set in place by the BAPCPA, visit Total Bankruptcy's FAQ section.

Student Lending Bill Passes Senate Unanimously

After the mid-April House passage of a bill to address the shortage of student loans caused by the credit crunch, the Senate voted unanimously May 1st to pass a similar bill. According to the Wall Street Journal, Congress acted quickly to address the issue in time to help students applying for loans for the fall semester. President Bush has expressed support for the measure.

Both the Senate's version of the bill and the House's allow the government to temporarily buy more student loans to pump cash into the market. The two versions also allow students to borrower larger dollar amounts in federally-backed loans.

Experts expect the House to pass the amended version.