Matthew A. Dunaway

American Consumers Crushed By Household Debt

Mon, 14 Apr 2008 19:11:20 -0700

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?

Thu, 20 Mar 2008 23:12:44 -0700

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

Tue, 18 Mar 2008 21:42:17 -0700

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

Mon, 17 Mar 2008 20:19:48 -0700

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

Mon, 17 Mar 2008 19:22:15 -0700

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.