Economic distress eased in August but bankruptcy numbers remain unchanged

According to a yahoo finance article
economic distress eased although unemployment ticked up and foreclosures likely only slowed down from banks delaying proceedings. Many banks foreclosure methods are being questioned as many banks through MERS are having standing issues in trying to foreclose as well as the affidavits that were being signed were not by people who necessarily had knowledge of the foreclosure file which is required. It will be interesting to see how the slow down in foreclosures that is likely to come will affect the economy and house prices in general. Some economists think the banks have exacerbated the problem by foreclosing too quickly and putting distressed properties back into the market at a rate they can’t be absorbed while others believe that its best to get out of this thing quickly so we can see a real road to recovery instead of a double dip. No matter what your take on it, there are still many home owners struggling to pay their mortgage and bankruptcy is a great way to buy some time and get your financial house back in order. Call a riverside county bankruptcy attorney if you are having problems modifying your loan or need any other help in trying to stay in your home while these economic times remain fragile

Frequently Asked Questions: Debt Consolidation in California
How does debt consolidation affect credit scores?

Initially, it might cause a slight dip due to credit inquiries. However, consistent payments can improve your credit score over time.

What is the difference between debt consolidation and debt settlement?

Debt consolidation involves taking a new loan to pay off debts, while debt settlement is negotiating to pay less than you owe. Settlement can negatively impact your credit score.

What are secured vs. unsecured debt consolidation loans?

Secured loans require collateral (like a house or car), usually with lower interest rates. Unsecured loans don't require collateral but typically have higher rates.

Is debt consolidation right for me?

It depends on your total debt, interest rates, credit score, and payment capability. It's suitable if you can pay off your debt within five years and secure a lower interest rate than your current debts.

Should I consider long-term financial planning?

Yes, debt consolidation should be part of a broader financial strategy including budgeting, cutting expenses, and building an emergency fund.

How do Chapter 7 and Chapter 13 bankruptcies in California differ?

Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows debt restructuring over a set period, usually three to five years.

Can my spouse's bank account be garnished for my debt?

Bankruptcy laws offer protections against such actions, but specifics depend on individual cases and state laws.

How can I learn more about my options?

Consulting a California bankruptcy attorney can provide clarity. Firms like The Law Offices of Christopher Hewitt offer free consultations to explore debt relief paths.

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