Orange County Bankruptcy Lawyer Blog

The number of people who filed bankruptcy in Orange County increased 40 percent in the first six months of 2010, the Orange County Register reported.

Our Garden Grove bankruptcy lawyers continue to report on the record number of consumers who are filing for Chapter 7 or Chapter 13 bankruptcy protection as a result of the collapsing real estate market and the economic downturn. Speaking with an experienced bankruptcy protection lawyer is one of the best ways to restore financial freedom and recover from job loss, a medical emergency or the crushing weight of consumer debt that can come with an upside down mortgage or unmanageable credit card debt.

The U.S. Bankruptcy Court for the Central District of California, which covers San Bernardino, Riverside, Orange, Los Angeles, Ventura, Santa Barbara and San Luis Obispo counties, reports that 6,500 Orange County businesses and individuals filed for bankruptcy protection between January and July of 2010. That rate is 40.3 percent higher than a year ago.

While the numbers of bankruptcies continue to grow,the rate is slowing. By comparison, the number of filings increased by 77 percent between June 2008 and June 2009. Authorities place the blame for the strain on consumers on a number of factors, including:

-Unemployment: 9.5 percent

-Housing foreclosures: Up 3.8 percent in first half of 2010

-Consumer debt: 2.4 trillion in May.

California small businesses are also leading the nation in the number of bankruptcy filings. Orange County small business bankruptcies represented 8.6 of all filings.

Continue reading " Orange County consumer bankruptcies continue to rise; small businesses continue to seek bankruptcy protection " »

The San Francisco Chronicle reports that the number of California bankruptcies continues to soar, despite the overhaul to consumer bankruptcy laws five years ago.

Our Riverside bankruptcy lawyers and Orange County bankruptcy attorneys continue to report on the record number of consumer bankruptcies occurring in the Los Angeles area and throughout California.

An estimated 120,000 California consumers could seek bankruptcy protection this year. Real estate debt, credit card debt and medical bills are the primary causes of consumer bankruptcy filings.

The overhaul of the bankruptcy laws was heavily lobbied for by credit card companies five years ago. The new rules created an income-to-debt test for consumers wishing to file for Chapter 7 protection. Chapter 7 bankruptcy completely forgives most debt, including credit card debt, but the new rules require certain consumers to establish a repayment plan. A Chapter 13 bankruptcy is the traditional form of bankruptcy that establishes a repayment plan.

Either filing will stop bill collectors and other harassment that frequently results when consumers reach the financial breaking point. Both means of bankruptcy protection can provide a fresh start and an end to the crushing weight of serious financial problems.

Those who backed the new rules believed the large spike in bankruptcies right before the new laws took effect in 2005 was an anomaly that would not be repeated. Those of us who fight for the rights of struggling consumers on a daily basis knew better. Insurmountable levels of consumer debt are what drive bankruptcies. And the banks and credit card companies have played a key role in building the high debt levels of American families, even as these companies fought to make it more difficult to seek bankruptcy protection.

Bankruptcy filings in California and nationwide are now approaching the elevated levels of 2005 in the months before the new laws took effect. The huge numbers of filings have restarted the debate over whether irresponsible consumers or predatory lenders are primarily to blame.

One thing is certain, the predatory lenders have their advocates. Consulting a bankruptcy attorney in the Los Angeles area will help ensure that your legal rights are protected as well.

Continue reading " Orange County bankruptcy lawyer can protect your rights against predatory lending " »

Thousands of Southern California residents are getting phone calls and letters from banks and credit card companies, as new consumer protection laws begin to take effect today.

As our Garden Grove bankruptcy attorneys continue to report on our Orange County Bankruptcy Lawyer Blog, credit card debt is a leading cause of Chapter 7 and Chapter 13 bankruptcy filings in the Los Angeles area.

Bank Rate reports on some of the new rules that take effect today:

-Credit card offers will have a new look and new requirements. Fees and interest rates must be displayed in bold text and the interest rate must be in large font. Fees will be summarized in their own table.

-Those approved for a new credit card will receive a one-page summary of the agreement. Fees will be highlighted in a table and no longer buried in a 15- or 20-page agreement.

-Monthly statements will be easier to read, with important information on fees and interest rates clearly marked in summary boxes at the top.

-Minimum payment warnings will tell consumers how long it will take to pay a bill off by only making the minimum payments and how much it will cost.

-Account changes will no longer sneak through the mail in nondescript envelopes. They must now be disclosed in a box at the top of the statements.

Banks must also allow consumers to opt into overdraft protection, so that customers are no longer surprised by the multiple large fees that can come with over drafting your account several times using an ATM card. However, these changes have a dark side. It seems for every move the government makes to protect consumers, credit card companies create a new stream of income. Large membership fees, fees for card holders who do not use their card, and a reduction in card-member benefits are being reported. Banks are also instituting a variety of monthly and user fees on bank accounts and checking accounts.

If you are considering bankruptcy in Santa Ana or the surrounding area, speaking with an experienced attorney can help ensure that your rights are protected throughout the legal process. Bankruptcy can offer a fresh start for consumers struggling with credit card debt, foreclosures, bad debt, liens, or other financial problems in the Los Angles area.

Continue reading " New bank rules aim to protect Los Angeles consumers " »