American Consumers Crushed By Household Debt
Posted by: Matthew Dunaway
April 14, 2008
Topic: Bankruptcy
According to a recent article in Businessweek by Michael Mandel, household debt in the U.S., and around the world, has exploded in the last seven years to almost 14 trillion dollars; yes, that's trillion with a "t". By comparison, had household debt continued its pace of the 90's, the total would "only" be around 11 trillion dollars.
After all the talk about Congress passing laws to restructure mortgages in hopes of averting an all out collapse of the housing market, many policy makers seem to have ignored the proverbial "elephant in the room"...consumers have too much debt.
Can I Keep My Home If I File Chapter 7 Bankruptcy In Alabama?
Posted by: Matthew Dunaway
March 20, 2008
Topic: Bankruptcy
Most people do not loose their home or car when they file bankruptcy. Many people considering the bankruptcy option are under the false impression that if they file bankruptcy, they will loose their home and car. This is not necessarily true. In most bankruptcy cases, even in Alabama, debtors have the option of keeping their home and car. If the debtor is allowed and decides to keep the home or car, he must continue making monthly payments to the creditor. The other option is to surrender the home or car to the creditor.
Foreclosures and Voodoo Accounting Put Banks at Risk
Posted by: Matthew Dunaway
March 18, 2008
Topic: Foreclosure
In the March 24, 2008 issues of BusinessWeek, Mara Der Hovanesian has an excellent article revealing the precarious position many banks and lenders have put themselves in by hawking exotic mortgage products, such as option-arms to consumers and homeowners. Hovanesian details the shady accounting of many mortgage lenders which makes their earnings look better than they actually are. But as we've seen with the Countrywide debacle, accounting can cover-up for only so long, eventually the numbers don't lie. Banks, mortgage companies and lending institutions have been having to write down billions of dollars in defaulted mortgages, so much so, that the banks are now in danger of not having enough funds in reserve to cover such losses. This is bad...really bad; ala Bear Stearns bailout
Chapter 13 Debtor's Court in Alabama - An Introduction
Posted by: Matthew Dunaway
March 17, 2008
Topic: Debtor's Court
Chapter 13 Debtor's Court is often of good option for consumer debtors who have fallen behind on their debt payments, but who do not want to or not eligible for Chapter 7 Bankruptcy. Types of debts that can be included in Chapter 13 Debtor's Court include: mortgage arrearage, auto payments, credit cards, medical bills, taxes, studen loans, child support and other secured debts and unsecured debts.
Unfortunatley, many people do not understand how Chapter 13 Debtor's Court works and how it can help them. The following is a summary of Chapter 13 Debtor's Court.
Sub-prime Foreclosures and Credit Crisis bring down Wall Street's Bear Stearns
Posted by: Matthew Dunaway
March 17, 2008
Topic: Foreclosure
The fallout from the sub-prime mortgage debacle, which has lead to rampant foreclosures in Alabama and througout the U.S., has taken it's tole on a Wall Street icon, Bear Stearns. Over the weekend, J.P. Morgan, with help from the Fed, agreed to buyout (save from bankruptcy) one of their own. How did Bear Stearns go from a high powered 85-year-old Wall Street institution to being saved from bankruptcy by the government and it's Wall Street neighbor? In short, hubris. Bear Stearns continued to bet big on sub-prime lending and the mortgage boom, even when other banks and investment firms were bracing for the coming mortgage crisis.
Stemming the rising tide of Foreclosures in Alabama
Posted by: Matthew Dunaway
March 12, 2008
Topic: Foreclosure
As the mortgage crisis continues and foreclosure rates continue to increase, different solutions to the problem have been suggested. A recent article in The Economist sets out both the problem faced by homeowners and potential solutions. As home prices continue to decline and adjustable rate mortgages begin to squeeze homeowners, many consumers have decided to simply turn their keys back in to the mortgage company and face foreclosure and many times eventually bankruptcy.
Alabama Mortgage Crisis Increases Foreclosures
Posted by: Matthew Dunaway
March 11, 2008
Topic: Foreclosure
The fall in home prices teamed with the contraction of lending standards by banks has posed great difficulties for those with good credit histories. According to economists, many people are missing the deadline on their payments on credit cards, auto loans and most importantly home loans.
Right of Rescission Under TILA
Posted by: Matthew Dunaway
March 10, 2008
Topic: Truth In Lending
The federal law offers a 'cool-off' period, if you are refinancing your purchase money loan with another lender or getting a home equity loan. This cool-off period is offered in the 'right of rescission'. To put it simply, this credit law provides you with some extra time to help you decide on the agreement. Under the Truth in Lending Act of the Federal law, the Right of Rescission offers protection to borrowers.
Closed-End Credit Transaction Under TILA
Posted by: Matthew Dunaway
March 10, 2008
Topic: Truth In Lending
Closed-end credit refers to a credit extended for a particular period of time and is set on a specific amount. For instance, if you purchase a washing machine under the closed-end agreement, a specific payment must be paid within a fixed time period (a specific number of week or months). The credit must be repaid in full within that time period.
Open-End Credit Transactions Under TILA
Posted by: Matthew Dunaway
March 10, 2008
Topic: Truth In Lending
An open ended credit is generally described as an agreement or a pre-approved loan between the borrower and the financial institution or the lender. The loan can be put to use by the borrower repeatedly, however, only to a particular limit and must be repaid subsequently before the payments turn overdue.
Matthew A. Dunaway, Attorney at Law, helping Alabama consumers in Birmingham, Huntsville, Montgomery, Mobile, Tuscaloosa, Anniston, Gadsden, Hoover, Decatur, Florence, Auburn, Dothan, Selma, Cullman, Madison, Athens, and Selma with Bankruptcy, Debtor's Court, Credit Reports, Creditor Harassment, Mortgages, Foreclosure, Debt Collection Defense.
