Los Angeles Bankruptcy Lawyer Blog

While it may not be an overwhelming amount, it may end up being the straw that broke the camel's back -- increasing bank fees.

Bankrate.com reports in its annual checking survey that more and more banks are going to eliminate free checking and add fees to other products.

The charge may be a mere $50 a year, but many people don't have that extra money lying around. No matter, banks are money-making ventures. Even though it's the consumers who make them money by putting cash into the bank vault, banks are going to charge them as much they want.

This sounds eerily similar to what predatory credit card companies do. They charge people high interest rates and then add in hidden fees that end up hurting consumers when they least expect it.

But there's a way to fight back -- bankruptcy in Los Angeles. By eliminating debts, a Los Angeles bankruptcy attorney can guide the consumer to freedom from debts, which can open up the ability to handle the fees and other bills that come along.

According to Bankrate.com, not only are fees on the rise, but the good old days of enjoying a free checking account are numbered. The data comes from surveying the five largest banks and largest thrifts in the top 25 markets. These are some ways the banking world is changing:

Free checking is endangered:
Of those surveyed, only 45 percent of non-interest checking accounts are free, down 20 percent from 2010. It was 76 percent two years ago.

Account fees are increasing:
Not only are banks now charging for checking accounts with more regularity, but the amount they charge is climbing as well. The average fee in 2010 was $2.49 per month, which is now $4.37 per month. That's about $52 a year in fees that weren't levied before.

Debit card fees on the horizon:
Some banks are already experimenting with fees for using debit cards. The banks surveyed say that's going to be more of a reality in the coming years.

More hurdles to avoid fees:
Minimum balances to avoid a fee are increasing. The average minimum balance to avoid a fee was $249 in 2010 and is now $585.

ATM fees increase:
ATM surcharges have hit an all-time high for the seventh straight year. It's up to about $2.40, an increase of seven cents from last year.

Interest checking pays less:
While bank fees increase, what banks pay out to customers is dropping. Interest checking is less attractive as rates have fallen in recent years. Yields are down to 0.08 percent, while fees rose from $13.05 to $14.05. It's almost pointless.

So, while free checking going away is an inconvenience, when you add up all the hidden fees you discover that banking is more expensive than ever. Of course this can cause a lot of trouble for someone just trying to get by. Bankruptcy in Los Angeles can ease the frustration by clearing away debt and giving you back the freedom you once had.

Continue reading "Hidden Fees, Bank Fees Increase Risk of Bankruptcy For Los Angeles Consumers" »

A recent MSNBC.com article based on a study by a Canadian researcher suggests that when it comes to saving money, keep it simple. Save for one specific goal at a time -- assuming of course you have disposal income to put away.

But most folks can't even fathom saving money right now. With the economy in the tank, many Americans are jobless, some have mounting medical bills, and many frankly are just unable to put money away for savings.

These people might want to consider bankruptcy in Los Angeles. By filing and completing bankruptcy, a person's debts are discharged, enabling him or her to move on with life without the stress of creditors calling and lenders harassing. The consumer can improve his or her credit score and again qualify for loans without absurd interest rates.

Consulting with an experienced Los Angeles bankruptcy lawyer is the first step. An attorney can determine whether you qualify for bankruptcy and what steps must be taken in order for you to have the best resolution going forward.

According to the article, which was based on a study out of Toronto, making one goal to save money is more effective than having several goals. Most people end up trying to figure out which goal is more important and end up spreading their savings so thin they don't accomplish much.

Rather than saving for a new car, a vacation and an addition to the house, pick one. Stick to that goal and attempt to go forward with that savings plan. Otherwise, the study suggests, there may not be any savings plan at all because once the person gets behind saving for one thing, they may scrap saving altogether.

An informal poll on the website under the story captured 1,820 votes and the responses were nearly identical down the middle about the best way to save:

• Having one simple goal, like going on vacation: 33.6%


• Having a few goals, like buying a house, sending the kids to college and retiring: 33.1%


• Saving money? That's a pipe dream these days: 33.4%

It's surprising more people didn't answer option three. Many Americans couldn't even consider putting away money for savings right now. If they are lucky enough to have a job, it may be just barely paying the bills. And if they were previously unemployed, they may have lived off loans or credit cards in order to pay more pressing bills, such as a house payment, rent or a car payment. And now, those bills are coming due, with high interest rates and hidden fees.

This creates the perfect storm for a consumer to be trapped in debt. Without a way out, the debt continues to pile up and gets worse and worse.

But there is an answer -- bankruptcy in Los Angeles. If your credit score is shot, you have tens of thousands of dollars in credit card debt, and you are unable to get a loan, this may be a good option. Getting all that debt off the table allows you to start over and get back on track financially.

Continue reading "If You Can Save, Keep it Simple; If Not, Consider Los Angeles Bankruptcy" »

The United States Bankruptcy Court for the Central District of California, the court that governs Los Angeles, recently released statistics that show Chapter 13 bankruptcy in Los Angeles has become a more frequently used form of bankruptcy filing.

According to the court's analysis, Chapter 13 filings have increased more than 16 percent from January to August 2011 compared to the same period in 2010. The 2011 numbers are based on estimated filings through June.

Chapter 7 bankruptcy is by far the most popular chapter under which consumers file for bankruptcy, as it's the chapter under which a person can have their debts discharged and move on with life the quickest.

But Chapter 13 bankruptcy in Los Angeles has its perks for people in a different situation. For those who own assets and might make too much money to qualify for Chapter 7, Chapter 13 allows payment plans, usually for three to five years, to pay back creditors. Once the period has ended, the debts are considered paid in full.

Chapter 13 usually is for people who have assets that they would like to keep, whereas most Chapter 7 filers have far more debt than assets that could be sold to help pay their debt. Homeowners filing for Chapter 13 would likely be able to keep their house, vehicles and other assets after the process has concluded.

According to the court's numbers, 20,829 people filed for Chapter 13 bankruptcy in 2010, compared to 73,999 who filed for Chapter 7 bankruptcy. This year, Chapter 7 filings have decreased by about 6 percent, to an estimated 69,327 through August. But compared to the nearly 21,000 who filed Chapter 13 in 2010, there has been an estimated 24,200 so far in 2011.

This may show that the economy is hitting the working middle class the hardest right now. While waves of low-income or no-income families have used bankruptcy consumer laws to their advantage by discharging debts and getting a fresh start, the middle class, who may not qualify for Chapter 7 are still using these protection laws to help them with their particular economic situation.

Either chapter is designed to help consumers. Chapter 13 is simply for people who make a little more money, but the results are the same. They can come away from bankruptcy with a fresh start ready to move on with life free from debt and hounding creditors and lenders.

And at the end, they can still keep their home and vehicles, and have their debts from medical bills, credit card bills and other outstanding loans go away after making monthly payments consistently on time for a few years down the road. Whatever your situation, bankruptcy may help. The first step is consulting with an experienced and dedicated Los Angeles bankruptcy lawyer who can help you make the right decision regarding your finances.

Continue reading "Los Angeles Chapter 13 Bankruptcy Becoming More Popular" »

As Californians continually struggle to find employment during economic times that are slow to produce jobs, rising costs can make even more of an impact in the level of stress a family endures.

As CNNMoney pointed out in an article recently, childcare costs have soared in the last decade for the average, middle-class family due to health care, gas prices, food costs and even day-care and babysitting bills. Coupled with unemployment, these bills can be especially taxing on families who are just trying to get by.

This is far from a new phenomenon, as Los Angeles bankruptcy lawyers have seen these struggles time and time again. But with the Great Recession just behind us and analysts worried about another recession as the global economy weakens, the problems have been magnified.

Many people are considering bankruptcy in Los Angeles as a way to get out of the mess that has been thrust upon them. With joblessness, high interest rates and a bleak economic outcome, bankruptcy can allow families to discharge high amounts of debt, leaving them with more money to spend on high-priority bills, such as child care.

The CNN story reports that from 2000 to 2010, the average cost of raising a child from birth to 18 has increased 40 percent, from about $165,000 to $227,000. Analysts chalk up the heavy increase to gas price increases, cost-of-living hikes, the high cost of daycare programs, babysitting needs and clothing costs.

Among the highest costs that parents endure, along with percentage of their cost on a child's total care needs:

• Housing: $69,660 (31 percent)


• Child care and education: $39,420 (17 percent)


• Food: $36,210 (16 percent)


• Transportation: $30,900 (14 percent)


• Misc: $19,110 (8 percent)


• Health care: $18,420 (8 percent)


• Clothing: $13,200 (6 percent)

AAA, the nationwide transportation organization, suggests that rising gas prices -- 85 percent in a decade -- contributed to the high cost of transportation for families, while the cost of food, clothing and other common expenses rise.

Most parents consider costs such as child care not flexible because staying home to be with their children means they probably can't work outside the home. And not everyone has a loving, retired and capable parent or relative who can care for the kids at no cost.

This makes other bills the target of non-payment. And if consumers begin neglecting other bills and making minimum payments, their interest rates can soar. That often leaves them paying as much as 20 percent to 25 percent more for the purchase than the original price.

As this trend continues, the bills can become insurmountable. That is, until a bankruptcy in Los Angeles helps to wipe away the debt, giving the family a fresh start on financial freedom. With the debts of the past taken off their slate, the family can prioritize their spending and provide for their children as they intended, without past problems frustrating them.

Continue reading "Los Angeles Bankruptcy an Option as Unemployment, Childcare Costs Rise" »

A new survey shows that more and more college graduates are seeking bankruptcy protection due to mounds of debt and few prospects for a job after leaving the university, CNNMoney reports.

This is a tough time for college graduates throughout the country. Higher education has become more and more expensive as universities figure out a way to ride out the recession's after-effects. As the cost of education spirals upward, many people are left with massive student loans that paid for housing, books, tuition and the cost-of-living that comes with going out on their own for the first time in life.

But predatory credit card companies have done a great job hunting down our impressionable college students, offering rewards programs, special deals and other perks that seem great until students realize it's those "perks" that have launched them into debt. So, they leave college with a degree, a large amount of debt and few job prospects.

In many cases, bankruptcy in Los Angeles can be a viable option for those seeking help with debt that has left them in difficult times. For those with few other places to turn, seeking an experienced Los Angeles Bankruptcy Lawyer who can explain the bankruptcy process and guide them through it is invaluable.

As the Los Angeles Bankruptcy Lawyer Blog reported in July, federal lawmakers are pushing to add student loan debt as a form of debt that can be regularly discharged in a bankruptcy proceeding.

Currently, student loans are protected except for extreme situations, as well as for people whose student loans are an "undue hardship" or if they are unable to find work and make money. While that is an obstacle, it doesn't mean bankruptcy can't help. If other debts are eliminated, solely having to pay off college loans can be a way for college grads to get out of debt.

Generally, a person must wait eight years between filing for Chapter 7 Bankruptcy in Los Angeles -- the most commonly filed form of bankruptcy -- and filing again in order to qualify for a discharge of debt.

So, it may be prudent to watch this new effort by lawmakers to allow student loans to be considered for discharge in a bankruptcy proceeding. Eight years is a long time to wait between getting bankruptcy protection, so it's just another thing to discuss with an experienced L.A. Bankruptcy Lawyer.

According to the CNNMoney report, the rate of college graduates filing for bankruptcy protection has increased 20 percent, the finding of a new study that involved more than 50,000 respondents.

While most people -- 70 percent -- who file for bankruptcy have no college degree, the study surprisingly found that graduates are filing for bankruptcy at a high rate. While it's not surprising that bankruptcy rates increased since 2006, those who make more than $60,000 have increased 4.5 percent in the last four years.

That shows that even higher-income families are using bankruptcy protection to their advantage. While many would rather grit their teeth and continue making minimum payments in the hopes that the economy turns in their favor, some would rather take charge and use these laws to their advantage.

With the guidance of an experienced lawyer, a consumer who has massive debt and few job prospects or are underwater in payments compared to his or her personal debt can gain financial freedom by using bankruptcy laws to get back on track.

Continue reading "College Grads Seeking Bankruptcy in Los Angeles to Ease Debt Problems" »

As the Los Angeles Bankruptcy Lawyer Blog commented on recently, the middle class has become more and more susceptible to falling into debt, which has led to an increase in the poverty rate.

And the statistics now show that it's true. According to new census data recently released, the nation's poverty rate rose to 15.1 percent in 2010, the highest level since 1993. In 2009, the rate was 14.3 percent, CNNMoney reports.

It is sad to see that people are struggling with debt so much that they are being driven below the poverty line. People are in such need that they are using credit cards in order to survive and it's those habits, along with the credit card companies' predatory practices, that have left many people deeply in need.

But for those who have little elsewhere to turn, filing for Chapter 7 Bankruptcy in Los Angeles may be an option to get back on their feet and start fresh. Bankruptcy laws are designed with consumers in mind, and they allow people to discharge debts and start over without the threat of creditors and lenders harassing them. In fact, filing for bankruptcy ensures that lenders can't contact the consumer during the bankruptcy process.

An experienced Los Angeles Bankruptcy Lawyer will go over your situation and look to find solutions to your debt problems. Should they be medical bill, predatory lending or job-loss driven, our firm will work with you to determine the best line of defense against creditors and lenders.

According to CNNMoney, 46.2 million people are now considered in poverty, a jump of 2.6 million from 2009. Given the economy, the numbers aren't surprising, experts say. Even with accounting for inflation, poverty is considered an individual who makes $11,139 or a family of four that makes $22,314 a year.

Census numbers showed that the rich have gotten richer and the middle class' income has largely stayed steady. From 1980 to 2010, the middle-income family earned only 11 percent more, while the richest 5 percent of Americans have seen their incomes increase 42 percent in the same time period.

More than 1 in 5 children are living in poverty, while the poverty rate for non-Hispanic whites is at 9.9 percent. Blacks had the highest poverty rate at 27.4 percent, with Hispanics at 26.6 percent. Slightly more than 12 percent of Asians fall under the poverty line.

Sadly, many of these families and individuals fell into poverty as a result of extreme debt problems, brought on by joblessness, unexpected medical bills and lenders who charge outrageous fees and interest rates.

So, for many people, drowning in debt has been brought on through no fault of their own. For that reason, it may be possible to use bankruptcy laws to their advantage to clear the debt and start fresh in an effort to avoid the poverty rate.

Filing for bankruptcy stops lenders from harassing consumers and allows them to discharge most of their debt and move on with life without fearing a move to a shelter or going on government assistance programs.

Continue reading "Poverty Rate Increases in Los Angeles, U.S. Due to Overwhelming Debt" »

CNNMoney recently reported that a faster foreclosure process is the only way to help the downtrodden real estate market recover.

But Los Angeles Bankruptcy Lawyers would argue that a faster-moving foreclosure process would trample the rights of homeowners as banks have already tried to unlawfully take away people's houses with robo-signed documents and other shady dealings.

There are many options to stopping a foreclosure in Los Angeles. Chief among them is filing for bankruptcy. Filing stops foreclosures immediately and allows for the homeowner to focus their efforts on getting outstanding debts eliminated. Loan modifications, refinancing and short sales are also options, but require bank agreement and participation, which can sometimes be difficult.

According to the news article, The Obama administration's programs to help save the housing market simply haven't worked and the market is getting worse. Experts believe that as the foreclosure process drags out, the economy will be slower to recover. By getting people out of their houses and selling them, the inventory will shrink.

Of those behind on mortgage payments, only 6 percent had hit the two year mark in July 2009. This summer, more than one-third of those behind on payments were two or more years behind. A majority of homeowners -- 71 percent -- are at least 12 months behind on payments. Two years ago, 41 percent were in that position.

But a big part of that change in statistics is because of the aforementioned bank problems. Lending institutions have used mortgage servicers and other companies to quickly process foreclosures since 2007, when the housing market began crumbling and people started missing mortgage payments in droves.

These companies signed off on documents that were supposed to be checked by bank officials who had knowledge of the case, but were instead signed by people who had no knowledge of the specific case or qualifications to sign the documents. Banks were also accused of filing inaccurate paperwork.

Among these scandals -- and the impending attorneys general investigations into their practices -- banks have pulled back and cut back on filing foreclosures while they reassess the process. So, many foreclosures haven't been filed for nearly a year because of the problems, which has contributed to the number of people so far behind on their payments.

Industry leaders don't have any solutions, but they believe that government-run programs have missed the mark on helping people. They also believe that more programs will simply keep the country in its current rut with less opportunity to get out.

It's probably true that these foreclosure-themed programs won't really work because they typically have such restrictions on who qualifies and they don't do a lot for those who do qualify. Look at the funds that were put aside so banks could re-negotiate loans and help homeowners -- very few have used the money to help homeowners stay in their houses.

Bankruptcy, for those who qualify, is the only true way to stop foreclosure. The process stops the process immediately and allows consumers to discharge debt and get back on track financially. The process can also keep a person in their house during and after the process is complete.

Continue reading "Experts: Slow Foreclosure Process Bad, Yet L.A. Bankruptcy Can Stop Foreclosure In Its Tracks" »

Time Magazine recently published a story about how more middle class Americans are seeking help from homeless shelters as the poor economy causes people to look for any help available.

One of those avenues is by filing for Los Angeles bankruptcy. For those who have lost their jobs and are struggling to pay their bills, these times can be very stressful. Losing a house can be devastating as foreclosures have taken over our country.

But bankruptcy can help. Filing for bankruptcy immediately halts a foreclosure -- no matter what stage of the process it is in. For those who qualify, bankruptcy can whip out years of built-up debt that is making life impossible. An experienced Los Angeles Bankruptcy Lawyer can help consumers discover which options work best.

The Time article focuses on the family of a formerly high-profit movie producer, who worked on movies that grossed millions. Yet after losing work and being unable to get back on his feet, his family lost their house and were forced to rely on homeless shelters to get by.

The family has people pick up their 8-year-old son nearby loft complex to hide that he's living in a shelter. He attends school in his old neighborhood.

The number of homeless in California is on the rise, but it's members of the former middle class that are increasingly seeking help. The Union Rescue Mission has seen its membership increase three-fold in the three years since the economy began crumbling.

Unemployment in California is at a soaring rate -- 12 percent according to the U.S. Department of Labor's Bureau of Labor Statistics. And few have provided ways to get the state out of its current economic debacle.

Economists have said job losses in recent years are ahead of 1990 and 2001 recessions. California's jobless rate is the second-worst in the nation. The rate of those looking to obtain work sits at 22 percent, 6 percent higher than the national average.

When people lose their job, the most expensive payment is usually a mortgage payment. And once that house goes into foreclosure, people must find a place to live. If they don't have much in savings and don't have a job, it's probably going to be difficult to rent a place. Many don't know where to turn.

Bankruptcy can help. In many cases, it can protect a family long before life reaches such a breaking point.

For those who don't know where to look, consider filing bankruptcy. First of all, bankruptcy stops foreclosure, so even if many payments have been missed, it's possible to stay in the home while the bankruptcy process is ongoing. Other debts, such as outstanding utility bills, credit card debt, medical bills and other debt could be eliminated as part of the process.

This process can give consumers a fresh start as they struggle to cope with mounds of debt and creditors who are making life difficult. It can give people the kind of relief that can help them recover, rather than be saddled with bills that don't allow for any kind of breakthrough from financial disaster.

Continue reading "Middle Class Turns Homeless Due to Debt That Can Be Lifted Through Los Angeles Bankruptcy" »