Archive for the ‘Bankruptcy’ Category

Arizona Bankruptcy Rates on the Rise

The United States Bankruptcy Court, District of Arizona, maintains bankruptcy statistics for all cases filed in Arizona.  The state of Arizona is listed as one of the top five states being hardest hit by both the mortgage crunch as well as the soft housing market.  Even though unemployment is lower than the national average, bankruptcy cases in Arizona have risen dramatically from 2006 until 2007.

In January 2006, there were 162 chapter 7 bankruptcies filed in the Phoenix court, 42 filed in the Tucson court and 8 filed in the Yuma court for a total of 212 chapter 7 bankruptcies.  In January of 2007 these numbers saw a dramatic increase.  The Phoenix court system processed 273 chapter 7 bankruptcies which represented a 68.5% increase.  In Tucson, the number jumped to 106 cases in January of 2007 equaling a 152.3% increase of January 2006.  In Yuma, the increase was even more staggering at 287% jumping from 8 to 31.  When comparing January 2006 to January 2007, chapter 7 bankruptcies filed in Arizona increased 93.3%.
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Posted in Chapter 7 Bankruptcy, Arizona |

Predatory Lending by Mortgage Companies Add to Bankruptcy Filings

Predatory lending practices by many mortgage companies have led to increased bankruptcy filings.  As new mortgage programs were created to help serve those markets that were previously unable to secure a mortgage, predatory lending began to rise.  According to the US Department of Housing and Urban Development, “Predatory mortgage lending practices strip borrowers of home equity and threaten families with foreclosure, destabilizing the very communities that are beginning to enjoy the fruits of our nation’s economic success.”
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Posted in Bankruptcy |

Payday Loans Often Lead to Bankruptcy

Payday loans, also called cash advance loans, are considered by some in the finance industry to be the scourge of America.  Getting involved with payday loans can put some consumers on the quick route to bankruptcy.   Individuals who are facing a financial crunch are bombarded with advertisements on TV and radio and a plethora of stores, generally bunched into certain neighborhoods due to restrictions by some municipalities, offering them a quick fix for their financial woes.
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Posted in Bankruptcy |

Student Loans and Bankruptcy

One of the most commonly asked questions by individuals considering a bankruptcy petition is whether student loans are dischargeable debt.  Unfortunately, the quick answer to this question is no.  Prior to the Bankruptcy Abuse Prevent and Consumer Protection Act of 2005 (BAPCPA), private student loans were dischargeable in bankruptcy proceedings.  A private student loan is an education loan that is not guaranteed by the government.  Prior to the BAPCPA in 2005, private student loans were treated like other unsecured debt and readily discharged.
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Posted in Bankruptcy |

Bankruptcy Rates Drop Despite Media Reports

The US Courts website maintains statistics for all bankruptcy filings from 1995 through 2007.  Many media outlets have reported that bankruptcies are on the rise; the cumulative data that was released at the end of fiscal year 2007 (September 30, 2007) contradicts these reports.  In the 2007 fiscal year, there were 25,925 business bankruptcies filed and 775,344 non-business bankruptcies filed in federal court for a total of 801,269 bankruptcies filed in 2007.  In 2006 the numbers were 27,333 business filings and 1,085,209 individuals for a total of 1,112,542.
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Posted in Bankruptcy |