… can’t afford the payment(s).  The number one reason most debt settlement schemes don’t work is because the debtor cannot afford the payment(s).  Most debt settlement schemes require large upfront payments to the debt settlement firm which will be redirected to the creditor (minus the debt settlement firm’s fees). However, most debtors are severely cash strapped and can’t afford to pay.

The debt settlement firm is often unable to negotiate …

Permalink: /managing-your-finances/six-reasons-why-debt-settlement-schemes-often-don%e2%80%99t-work/

… will may be contested by his mother Katherine Jackson. Mrs. Jackson wants a seat at the table of the estate’s trustees; but will her bankruptcy work against her?

The article said:

“Jackson relied on his 79-year-old mother for more than emotional support: Documents show he put her in the position of trustee on contracts, including his lucrative Sony-ATV catalog, and associates say he also sought her input on other financial matters as he became more wary of those in his business …

Permalink: /bankruptcy/will-katherine-jacksons-bankruptcy-work-against-her/

We’ve got millions of Americans out of work and the bankruptcy filings just continue to rise. Even the most optimistic of Americans are finding themselves up against a financial wall, with only bankruptcy preventing total financial disaster. There’s an interesting article at the NJ.com featuring the stories of several debtors who have filed bankruptcy, giving a truly grim but honest look at the real faces …

Permalink: /dfw_metro_bankruptcy/job-losses-unpaid-work-and-furloughs-sending-more-americans-to-bankruptcy/

According to an article in the Dallas Morning News, the number of workers receiving unemployment benefits dropped by 148,000 to 6.69 million; but 50 percent of those workers had exhausted their unemployment benefits without finding work.

The article said:

The report shows that job losses are easing after companies made deep cuts earlier this year. But nearly half of recipients at the end of last month had exhausted the 26 weeks of benefits provided …

Permalink: /bankruptcy/fifty-percent-exhaust-their-unemployment-benefits-without-finding-work/

… that they will be forced to continue their Chapter 13 bankruptcy plan even if they can no longer work because of an injury or other valid reason.  If for some reason a debtor in Chapter 13 bankruptcy is unable to continue his/her bankruptcy repayment plan, he/she may be eligible for a “hardship discharge.”  What that means is that the bankruptcy court will forgive the balance of your debt, relieving you of any obligation to repay the debt.  However, certain debts may not be …

Permalink: /chapter_13_bankruptcy/what-happens-to-my-chapter-13-bankruptcy-if-i-can-no-longer-work/

It has been three months since the new foreclosure prevention program went into affect. And of the four million homeowners facing foreclosure the program was suppose help only 100,000 homeowners have received mortgage modification offers.  No word yet on how many of those offers were actually accepted. According to the Mortgage Bankers Association, nearly 5.4 million mortgage were nearing foreclosure within the first three months of 2009.  With only 100,000 homeowners receiving an …

Permalink: /foreclosures/billions-invested-in-foreclosure-prevention-programs-that-dont-work-now-what/

Chapter 11 bankruptcies have been in the news lately with the bankruptcy of Chrysler and the possible bankruptcy of GM.  Many debtors may be wondering how Chapter 11 bankruptcy could work for them.  Well, most individuals and small business debtors will benefit the most from Chapter 7 or Chapter 13 bankruptcy; but for some debtors Chapter 11 bankruptcy is either required or preferable.

Corporations and partnerships seeking bankruptcy protection must file …

Permalink: /breaking-news/when-a-chapter-11-bankruptcy-may-work-for-you/

According to an article in the Star-Telegram, over 8.6 million Americans work part-time because they can’t find full-time work, that’s the largest number of part-time workers ever recorded, a 76 percent increase from 2008.

The article said:

As the recession cuts demand for goods and services, companies that don’t shed workers outright must squeeze savings from the work force that remains. They typically do so by cutting hours.

These workers who have …

Permalink: /breaking-news/more-workers-face-financial-hardship-because-of-part-time-work/

… Some debtors prefer Chapter 7 bankruptcy because it allows a simple liquidation and discharge of debts giving the debtor a relatively quick fresh start.  But there are some essential differences and benefits of Chapter 11 bankruptcy that debtors should be aware of when considering bankruptcy.

#1 – When a debtor/business owner files Chapter 7 bankruptcy he/she is appointed a trustee who basically becomes the “owner of the business. In Chapter 7 bankruptcy the trustee’s sole …

Permalink: /chapter_7_bankruptcy/will-filing-chapter-11-bankruptcy-work-for-my-business/

Homeowners facing foreclosure often work hard to save their homes, contacting the mortgage lender, sending in requested paperwork and waiting patiently for a response. But because of the current backlog faced by many mortgage lenders, homeowners facing foreclosure are also faced with a nerve-racking wait that could jeopardize their home. In judicial states like California, foreclosing on a home can take a lot of time. A …

Comment by rick: … given a time span of 30 days… which is not enough they …

… that’s offered has very little tangible benefit.

The article said:

“Celina Gallegos of Arlington has taken a second, part-time job on a loading dock but still can’t afford her $930 mortgage payment. The solution her mortgage company offered? Payments of $1,100 a month aimed at helping her get caught up on back payments.”

And Celina is not alone. Many homeowners facing foreclosure are finding that mortgage companies have little motivation to help them keep their homes. And …

Comment by rick: … because in most of the mortgage deals the mortgage …

… Reuters, there’s a successful foreclosure prevention program that has saved almost 60 percent of its participants from losing their homes to foreclosure.

The article said:

“Philadelphia’s Mortgage Foreclosure Diversion Pilot Program, seen as a national model to stem the foreclosure crisis, resulted in 2,776 properties permanently or temporarily saved from [foreclosure] sale between its inception in June 2008 and May 31 this year out of 4,690 that were referred to the program, …

Comment by rick: … doesn’t seem to work properly