This kind of oversight is necessary in order to protect consumers. The protections afforded under the proposal do not come too soon. For years, consumers have been complaining about illegal tactics used by bill collectors, including aggressive harassment, as well as collecting on false debts. In fact, there was a record of almost 12,000 consumer lawsuits filed in 2011.
]]> Debt collectors are not the only ones under investigation. Credit reporting facilities, the most well-known of which are Experian, Equifax and Trans-Union, all compile financial information on consumers. This information is then used to determine credit worthiness for a multitude of purposes. However, when that information is incorrect and contains errors such as false delinquencies and out-of date balances, difficulties in correcting those mistakes can plague consumers for years.According to the proposal, the bureau is hoping to oversee the practices of several of the major debt collection agencies, along with the credit reporting companies and their responsibilities to consumers.
Hopefully, with the creation of this new bureau, and under the proposed changes, consumer rights will be given the importance they deserve.
If you are experiencing bad credit for any reason, you should know that help is available to get you back on the right track in Ohio.
Source: Pioneer Press, "Consumer-finance watchdog targets debt collectors," Tony Pugh, Feb. 16, 2012
]]>Such was the case of a Chapter 13 bankruptcy case filed by Grammy winning singer T-Boz. A bankruptcy court judge recently dismissed her filing at the request of the bankruptcy trustee.
]]> The bankruptcy trustee claimed that T-Boz:The judge dismissed her case based on the above, reasoning that the creditor in her case would be placed in jeopardy if the case were to proceed.
On the other hand, if T-Boz had complied with the technical requirements of bankruptcy law in a timely manner, her Chapter 13 filing would most likely not have been dismissed.
All is not lost however. It is still possible for her to submit another Chapter 13 bankruptcy filing, so long as she waits over 180 days. Interestingly, this is not the first time she has filed for bankruptcy protection either. Previous attempts were also dismissed.
However, this does not have to be the case. It is possible to complete a Chapter 13 bankruptcy filing successfully in Ohio with the help of an experienced and knowledgeable bankruptcy attorney.
Source: The Wall Street Journal, "Judge Scrubs T-Boz's Bankruptcy," Jacqueline Palank, Feb. 13, 2012
]]>The goal of the deal is to prevent further abuses that plagued the banking industry last year. Part of the settlement is aimed at ensuring that homeowners in Ohio and around the nation will no longer be victims of faulty lending procedures.
]]> It is also hoped that this settlement agreement with five major banks will help the housing market in making a long-term recovery. During the past year, these banks have been negotiating with all 50 state's attorneys general. As a result, during much of 2011, the foreclosure process was slowed considerably. As a result, the looming settlement acted like a shadow over the already troubled housing market.However, now that an agreement has been reached it is expected that the pace of foreclosures will increase. Many homeowners who were facing foreclosure have been hanging onto homes that they cannot afford with the lull in foreclosure actions. Many neighborhoods have also been negatively affected by abandoned homes that have not yet been foreclosed upon, along with the inability of buyers to obtain credit to purchase any of the foreclosed upon homes.
Now that lenders are more likely to seize homes, home prices will most likely further decline from their already depressed prices. It is expected that a backlog of homes will flood the housing market with very low-cost properties. There are also expected to be one million foreclosures in 2012, up 25 percent from 2011. Many of these homes most likely would have been foreclosed upon last year if it were not for the settlement delay.
All of this certainly does not bode well for Ohio homeowners, at least in the short term. Hopefully, things will begin to turn around in the near future, otherwise many homeowners facing foreclosure may have to consider all of their available options.
Source: Bloomberg Businessweek, "Foreclosures to Climb Before Bank Deal Helps U.S. Housing Market," Prashant Gopal and John Gittelsohn, Feb. 10, 2012
]]>The lawsuit accused Bank of America, Capital One, JPMorgan Chase, Discover, Citigroup and other credit card companies of violating federal antitrust laws by forcing customers to agree to mandatory arbitration as a method for resolving disputes. Often, these mandatory arbitration clauses imposed a significant burden on cardholders who wished to pursue a dispute with the credit card companies.
]]> At the heart of the litigation is the accusation that the credit card companies colluded, or conspired, with each other to have similar arbitration clauses in order to force customers into mandatory arbitration. Over the course of the years, Bank of America, Capital One and JPMorgan Chase settled with the plaintiffs. However, the case is still pending against Discover and Citigroup.Discover and Citigroup asked for the case against them to be dismissed. In a victory for the plaintiffs, the federal judge overseeing the litigation refused to throw out the collusion claims, noting that the credit card companies had decided to use arbitration clauses that were similar to the clauses used by competing companies. The judge also pointed out that the companies had numerous meetings with each other to discuss arbitration and that the evidence indicates that they could have used those meetings to conspire to adopt similar arbitration clauses together.
Although this lawsuit is still pending, Ohio consumers still have rights when faced with overwhelming credit card debt. For example, the U.S. bankruptcy code allows consumers to eliminate or reduce credit card debt, depending on the circumstances of the individual consumer.
Source: BusinessInsurance.com, "U.S. judge won't end credit card antitrust case," Feb. 9, 2012
]]>Gary Busey, the 67-year-old Hollywood actor and former "Walker, Texas Ranger" star, apparently has serious financial problems requiring him to seek help through bankruptcy protection. Mr. Busey filed for Chapter 7 bankruptcy protection earlier this week.
]]> According to his bankruptcy filing he currently has less than $50,000 in assets, but has accumulated up to $1 million in debts. Chapter 7 offers filers a sort of legal clean slate to start over when debt becomes unmanageable.After a serious motorcycle accident in 1988 caused a permanent brain injury, Mr. Busey began suffering from erratic behavior and some instances of drug abuse. Some have said that the injury left him with an inability to control his impulses. Reports have indicated that many of his debts stem from medical and legal bills.
Mr. Busey's recent turmoil has involved several drug arrests, an assault of a stewardess during a flight, domestic violence allegations and a divorce. All of these incidents contributed to substantial legal bills he accumulated.
There are a variety of different types of debt that Chapter 7 bankruptcy can help people resolve beyond those experienced by Mr. Busey. Credit card debt, mortgage defaults, car loans, and payday loans are all among the types of debt obligations that people can seek relief from.
As in Mr. Busey's story, these types of debts and financial troubles can start gradually and happen for any variety of reasons. Contacting an attorney can starting the filing process puts creditors on hold and can allow individuals to reorganize their finances.
Hopefully by filing for bankruptcy protection, Gary Busey will get a fresh start so that he can enjoy the rest of his life, free from unmanageable debt and financial burden.
Source: LongIslandPress.com, "Gary Busey Files for Bankruptcy," Jessica Sinclair, Feb. 8, 2012
]]>Unfortunately, nowadays this is no longer the case. The majority of those graduating from law school find it very difficult, if not impossible to find employment with sufficient pay to make ends meet.
Law students have become particularly at risk because of the increase in law school costs and the lack of earning power among law graduates, along with the shrinking job market for lawyers. As a result, many law students are left with student loans that they cannot afford to pay back. This is especially true of students graduating from lower tier law schools in today's competitive job market.
For example, meet a 26-year-old law school student. She is overloaded in student loans, currently owing $150,000. She is about to graduate without any hope of finding a job. And she is not alone. So, what are these graduates to do?
]]> In this case, the law school student filed for bankruptcy protection under Chapter 7. The difficulty is that federal law does not allow a bankruptcy court to discharge debt from student loans, unless it would present an "undue hardship." In this women's case, as in many others, such a huge debt load with no employment certainly seems like an extreme hardship.In general, it is very difficult, however, to prove an undue hardship. If a bankruptcy court believes that a student or graduate's financial problems are a result of one's own personal choices, such as taking on the maximum amount of debt and splurging, the bankruptcy court will most likely find that there is no undue hardship. Personal bankruptcy can still help with other forms of personal debt such as a mortgage or credit card debt.
This woman's story is not an isolated case. In fact, the number of bankruptcy filings among recent law graduates and law students is on the rise, even though the number of consumer bankruptcies fell during 2011.
If you are a student or a recent graduate who is struggling with unmanageable debt, you may want to consider the possibility of filing for bankruptcy protection so that you can get a fresh start and move on with your life.
Source: Reuters, "Law grads go to court for bankruptcy protection," Leigh Jones and Moira Herbst, Feb. 3, 2012
]]>If effort to make the Home Affordable Modification Program more beneficial to homeowners who are in over their heads with mortgage debt, the federal government said it will be tripling incentives to private lenders who lower principal balances on home loans.
]]> The Home Affordable Modification Program will be extended through 2013, and for the first time since the program began three years ago, incentives will also be offered for principal reductions made to mortgages owned by Fannie Mae and Freddie Mac.Additionally, new legislation is expected to unveil another program called the Home Affordable Refinance Program, which is aimed at allowing more Americans to refinance their mortgages.
Under the programs, homeowners may qualify for interest rates as low as 2 percent for five years. On average, participating homeowners are expected to see their mortgage payments being lowered by about $500 per month.
So far, more than 1.7 million homeowners have received help under the initial modification program. But that is a much lower number than was anticipated, and currently only about half of all applicants end up being approved.
Homeowners have complained that lenders lost their paperwork, which resulted in being disqualified. Lenders have said that applicants often don't provide the correct paperwork. This is why many people find it very helpful to have a professional on their side.
Source: Fox News, "Obama administration to extend and expand foreclosure relief program," Jan. 27, 2012
]]>Almost six years ago, the FTC began an investigation into one of the largest debt collection agencies in the country, Asset Acceptance. The FTC ultimately charged the debt collector with various complaints, including creditor harassment, illegal and deceptive practices, and the pursuit of debts that were beyond the applicable statute of limitations.
]]> Though Asset Acceptance did not admit any wrongdoing, it recently settled the claims against it for $2.5 million -- the second largest fine ever paid by a debt collector. It also agreed to notify consumers that they will not sue if the debt in question is beyond the applicable statute of limitations.According to a released statement from Asset Acceptance, the company is glad to have clarity on the FTC's policies and expectations with regard to debt collection practices going forward.
It is important for consumers to note that most states do not require debt collectors to verify whether the statute of limitations on debt collection has expired before it pursues a consumer for non-payment. This leaves it up to consumers to understand the statute of limitations in their state, which can sometimes prove to be rather complicated.
Ohio residents who are unsure of the state laws regulating debt collection practices should consider seeking help to ensure that they are not taken advantage of, and that they fully understand their rights when it comes to debts they may owe.
Source: The New York Times, "F.T.C. Fines a Collector of Debt $2.5 Million," Tara Siegel Bernard, Jan. 30, 2012
]]>Choosing an inappropriate form of bankruptcy can have very serious consequences for individuals in Ohio. While individuals experience success under both Chapter 7 and 13 bankruptcies, Chapter 13 filings can take more time. They may involve complex decisions when creating a repayment plan and may not be appropriate for all individual situations.
]]> Chapter 13 requires a payment plan in which an individual or couple must make timely payments on certain debts in order to have the remaining debts discharged in bankruptcy. If individuals are unable to make these payments, however, the bankruptcy court could determine that the conditions were not met.According to the study, it appears that race could play a role in bankruptcy as well. The study blames some bankruptcy judges and firms of steering individuals towards one type of bankruptcy depending on race. According to the study, African American people are pushed towards Chapter 13, when under the same financial circumstances Caucasian people are encouraged to file for Chapter 7.
Despite the findings in this study, it is important to note that Chapter 13 bankruptcy is not always more burdensome. In addition, there are many factors that contribute to the determination as to whether Chapter 13 is appropriate or not. It is also important to note that while race was targeted in the study, many other factors play a role in determining which Chapter to file under.
The results of this study are certainly something to think about. When choosing a bankruptcy attorney, it is important that you pick one with experience who is devoted to your case. An experienced attorney will be able to answer all of your questions and help you determine which course is best for your individual situation.
Source: The New York Times, "Blacks Face Bias in Bankruptcy," Tara Siegel Bernard, Jan. 20, 2012
]]>These lenders have not gotten away with these tactics as U.S. state attorneys general have gone after at least five major lenders, including Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial. The hope is that by doing so, the banking industry will overhaul its foreclosure procedures with reforms that will protect homeowners from wrongly losing their homes.
]]> A draft settlement agreement was recently reached between these banks and some of the prosecutors. According to the terms of the $25 billion draft settlement, these lenders must reform lending guidelines so that those Ohio homeowners who are at risk of losing their homes to foreclosure may be able to restructure their mortgages before being evicted. In addition, Ohio homeowners who are facing foreclosure but continue to struggle to make ends meet may possibly be eligible for a mortgage reduction.Unfortunately for the homeowners who improperly lost their homes, they will probably not get their homes back, or even reap some of the financial benefits of this major settlement. In fact, it looks like only about half of the victims of faulty foreclosures will receive any damages, and even then they will likely only receive approximately $1,800.
Source: Pioneer Press, "Mortgage lenders agree to $25 billion settlement," Derek Kravitz, Jan. 24, 2012
]]>The hope is that during the next year, the company will be able to sell off some of its assets, such as it extensive intellectual property portfolio, along with negotiating with several of its many creditors, in order to figure out a way that it can survive in an increasingly competitive industry.
Kodak has been the victim of patent infringement on some of its many patents that it holds, some of which continue have real value. Kodak apparently suspects that it may have been the victim of widespread patent infringement because of its volatile financial situation, and its questionable ability to pursue prosecution. However, in an effort to revive the company, Kodak is seeking compensation in several patent infringement lawsuits, including one such lawsuit against Apple.
]]> Kodak has been struggling with decreasing revenue for many years now. Kodak has also been forced to decrease its workforce by as much as 73 percent in an effort to trim its business operations and concentrate on digital technology.It is important for small business owners to understand that Chapter 11 is not necessarily the only option when faced with difficult financial situations. In some cases Chapter 13 may be more advisable and may provide more benefits, than filing for bankruptcy under Chapter 11, especially for small business owners. Bankruptcy law is quite complex, and a thorough analysis of a business's situation would be necessary in order determine what form of bankruptcy is most appropriate.
Source: The Wall Street Journal, "Kodak Bankruptcy By the Numbers," Shira Ovide, Jan. 19, 2012
]]>Simpson, 64, has been struggling, financially and otherwise, for the past 15 years. Although he was acquitted in the 1995 murders of his ex-wife and her friend Ron Goldman, he was held financially responsible for their deaths in the amount of $33.5 million. When Simpson and a ghostwriter released a book about the murders, a judge in an earlier case ruled that Simpson should not be allowed to benefit from the proceeds and awarded the rights to the Goldman family in partial payment on the $33.5 million debt.
]]> At one point, Simpson apparently paid down about $350,000 of a home equity line of credit on the Miami home. Because of his existing legal obligation to the Goldman family, however, the trustee in Simpson's bankruptcy case filed a clawback lawsuit to have that money returned and paid to higher-priority creditors like the Goldmans. When the bank returned the money, they increased Simpson's mortgage by the same amount, pushing Simpson further into foreclosure.Currently, the former football star is serving a potential 30-year prison term for his 2007 kidnapping and armed robbery conviction. He continues a costly appeal of that sentence.
Although he in prison, Simpson's will continue to have some incoming cash. His NFL pension and a retirement account are exempt from collections in bankruptcy Apparently, that income is insufficient to meet Simpson's mortgage payments. He has, however, challenged the foreclosure action.
Source: CBSNEWS, "Bank foreclosing on O.J. Simpson's Florida house," Jan. 16, 2012
]]>Among the star football players he has represented are Troy Aikman, Warren Moon, Steve Young and Ben Roethlisberger. Altogether, he earned millions of dollars in compensation for some of these contracts, which have included some of the largest in history.
Unfortunately, a series of events over the past ten years that have dealt the famous player representative several serious financial blows. According to reports, Steinberg is currently in debt for several million dollars, including one $1.4 million he apparently owes a Newport Beach landlord for office space he had leased. According to court documents, Steinberg's only remaining assets include a stock portfolio that will not be sufficient to meet his debts.
]]> How did Steinberg's finances get out of control? It appears to have been a combination of a disagreement with one of his partners, an unauthorized business transaction by one of his employees, and an alcohol addiction."I just lost track while I was in rehab," he told a reporter from the Associated Press. Steinberg explained that he had struggled with alcohol for years, but he has been sober since 2010.
Unfortunately, public news of his financial difficulties and Chapter 7 filing has made it only more difficult for him to obtain new clients and build his business.
According to Steinberg, he resisted filing bankruptcy for several years "because of my moral and legal obligation to people who advanced me funds or performed services in good faith.
"But the constant and aggressive collection efforts and press initiatives undertaken by creditors have harassed my family and prevented me from working to be able to pay these debts," he explained.
People of all backgrounds and income levels find themselves in financial distress due to medical issues, job loss, divorce and many other issues. If you are dealing with unmanageable debt, consider discussing your situation with a bankruptcy lawyer. You are under no obligation to file for bankruptcy simply because you talk to an attorney, and it is always best to fully understand your options before making any decision.
Source: ABC News, "Sports Agent Leigh Steinberg Files for Bankruptcy," Bernie Wilson, Jan. 12, 2012
]]>In an effort to help prevent home foreclosures in Ohio, the Ohio Housing Finance Agency (OHFA) announced new changes to the state's foreclosure prevention program. The changes, which are entitled "Enhancements to Restoring Stability: A Save the Dream Ohio Initiative, have been designed with the hopes of reaching Ohio homeowners who need it the most.
]]> OHFA's goal is to assist the thousands of Ohio homeowners struggling to stay in their homes. The original program was implemented in September 2010, and since that date, nearly 4,000 homeowners facing mortgage default or foreclosure have been helped.In fact, Ohio's program is one of the nation's largest foreclosure prevention programs. To date, OHFA has helped make more than $30 million in mortgage payments. This money has been designated by the U.S. Department of Treasury's Hardest Hit Fund.
The eligible homeowners are those facing financial hardships, such as unemployment, reduced wages, reduced hours, death of a spouse, divorce and medical expenses.
Under the new changes, the state agency is hoping to reach more unemployed and underemployed homeowners. These homeowners may be eligible to receive full mortgage payments for up to 15 months, or $20,000.
Other obstacles that previously stood in the way of Ohio homeowners qualifying for Ohio's Restoring Stability program have also been eliminated or modified. For example, homeowners who had missed mortgage payments or whose debt had been discharged in a Chapter7 bankruptcy case were previously ineligible. Under the expanded program, these are no longer exceptions.
Hopefully, with the expansion of Ohio's foreclosure prevention program, many more homeowners will not have to face losing their homes.
Source: The Jackson County Times-Journal, "OHFA announces changes to the State's Foreclosure Prevention Program," Jan. 9, 2012
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