Orange County Bankruptcy Lawyer Blog

New regulations on how banks and gift card issuers can assign fees went into effect on Sunday. While they do offer consumers a veil of protection by requiring better communication in how and when overdraft and “activation” fees are issued, they do not reverse or amend the strategy of paying highest-to-lowest charges most banks practice.

It is this practice, which maximizes a bank’s ability to charge overdraft fees, that most hurts consumers, particularly those who carry a low-balance account, according to an article in the Los Angeles Times.

Our Riverside bankruptcy lawyers and consumer protection attorneys fight for the rights of consumers who have been mistreated by banks, credit card companies, debt collectors or other businesses. The consumers most devastated by these kinds of charges are working class families who use their ATM cards, pay their bills on time, and work to set money aside for college educations for the kids and retirement for themselves.

Given the 9.8 percent joblessness rate in Orange County and a five-year spike in bankruptcy filings in the first quarter of 2010 alone, many Santa Ana and Riverside residents and consumers struggling to manage out-of-control debts on limited and diminished incomes are now seeking advice from Orange County bankruptcy attorneys with the hopes of better understanding their rights regarding bankruptcy and consumer debt.

Anyone with an ATM card knows that keeping track of your real-time balance can be a challenge. When a bank employs this higher-to-lower pay-out method, they are basically depleting your account of funds that may otherwise be available to cover multiple smaller charges.

What happens next is your account is then dinged with a $35-39 overdraft fee for each little charge, instead of one overdraft charge on a bigger ticket item. So, they cover your car payment, for example, but that gas purchase and run to the grocery and doctor visit co-pay comes with an overdraft fee that quickly adds up to hundreds of additional dollars.

What most consumers and certainly consumer protection advocates would rather see is a return to the chronological system of balancing consumer accounts wherein charges are processed in the order they are incurred.

Continue reading " For struggling Orange County residents, new consumer credit protections a mixed bag of goods " »

More than 1700 new Orange County bankruptcy cases were filed in July, an almost 25 percent increase from a year ago, further indication that for many Southern Californians facing high unemployment and the depressed economy, financial woes are far from over.

From the Central District to Los Angeles County, Californians everywhere are fighting a similar battle fueled by surging credit debts, underwater mortgages and depleted retirement plans, the Orange County Register reports.

For those who are continuing to struggle, finding and talking with an experienced, understanding, Santa Ana bankruptcy lawyer or Ontario bankruptcy attorney can assist you in determining a course of action that will allow you to regain control of your life.

L.A. County alone has seen a more than 50 percent spike in filings from a year ago, while markets from Sacramento to Santa Ana to San Diego continue to make the “top 15” hardest-hit counties for bankruptcy filings.

And it isn’t just homeowners who are taking the hit. According to a recent post on entrepreneur.com, it’s small business owners around the state and nation who are adding to the fresh wave of bankruptcies flooding the courts.

A recent study of quarterly business filings by the American Bankruptcy Institute found that last year alone more than 60,000 companies filed bankruptcies nationwide, a number that has been steadily tracking upward since 2006 and is highest on record since 1994.

Meanwhile, ABI reports, more than 28,000 companies nationally have filed for bankruptcy during the first two quarters of 2010. If the trend continues, the country is on track to see another 60,000 companies fold this year as well.

With the closure of these small businesses, unemployment numbers continue to climb, further fueling the downward economic spiral ravaging the savings, credit ratings and dreams of California workers and entrepreneurs alike.

Continue reading " Santa Ana remains bankruptcy hot spot as OC filings hit five-year peak " »

Lingering economic uncertainty has done more than destabilize our domestic and international financial markets. For Californians especially, who are among the hardest hit in the nation by the multi-faceted recession, as the household and living expenses mount, the security and structure of many families is threatened.

Both job seekers and employers are unsure about the future, leading to fewer hires and rising unemployment numbers. The housing market continues to stumble, and many Orange County homeowners are left watching helplessly as their savings disappear, their credit card debt increases and their credit scores tumble.

Many seeking advice from Orange County bankruptcy attorneys are being crushed by mounting debt, diminished income and plummeting home and commercial property values.

As many families struggle to stay afloat while considering their financial options, refinancing seems like a promising life-line. But according to a recent article in SF Gate, “lenders have been have been subjecting mortgage and refinance applicants to stricter and stricter criteria.”

In short, California homeowners, in their greatest time of need, are now facing a more challenging application process and lesser likelihood of refinancing approval.

The SF Gate article indicates that factor such as stricter income-verification standards and a more intense review of credit scores, paired with lender paranoia, restrictions on eligible income and inexperienced lenders can and do negatively impact a homeowner's chances to secure a low-interest refinance.

Finding and understanding, experienced and knowledgeable Santa Ana bankruptcy attorney can assist you in determining a course of action and help you regain control of your life.

Our team members will help you navigate the distinctions between filing a Chapter 7 or Chapter 13 bankruptcy, helping you deciding whether or not it is in your best interest to keep your home and putting a stop to harassing phone calls from debt collectors.

Continue reading " Inability to refinance or seek home equity loans can prompt consumer bankruptcies in Orange County " »

An additional $3 billion is being made available by the Obama Administration, including $1 billion in loans for the unemployed and $2 billion in funds for homeowners in the five hardest-hit states, including California.

Many of those filing for bankruptcy in Orange County are dealing with unemployment and/or bad real estate debt. For some, a loan modification or government program could provide assistance. But for many, seeking the advice of a Santa Ana bankruptcy lawyer is the best option for putting an end to financial problems and to seeking a new financial beginning.

CNN reports the $1 billion will be available in loans at 0% interest for amounts up to $50,000. The loans are aimed at assisting the unemployed keep their homes. The remaining $2 billion will be distributed to homeowners in the five hardest-hit housing markets: California, Arizona, Florida, Nevada and Michigan.

Few states have been as hard hit as California when it comes to the real estate market. Throw in record unemployment and it's no wonder why so many consumers are struggling. We assist clients throughout the Los Angeles area as they put a stop to the harassment of creditors and bill collectors and seize control of their lives again.

For many, a Chapter 7 filing is the best option. Sometimes known as a liquidation bankruptcy, a Chapter 7 bankruptcy filing will result in the elimination of most debt. You may even be able to keep your home or automobile, although it may make financial sense to include them in the bankruptcy. These are options you can discuss with us during your free consultation. In other cases, a Chapter 13 filing may make the most sense and will provide a consumer with the time and space necessary to establish a repayment plan and satisfy debts with little or no disruption to their lives.

Aside from unemployment and foreclosures, other leading causes of bankruptcy filings include divorce, medical bills and credit card debt.

Continue reading " Orange Counties bankruptcies often involve unemployment, foreclosure, bad real estate debt " »

Businessweek is reporting that U.S. consumer bankruptcies could top 1.6 million this year, after a reported increase of 9 percent in June.

As our Santa Ana bankruptcy attorneys reported last month on our Orange County Bankruptcy Lawyer Blog, the number of consumers filing bankruptcy in Orange County increased 40 percent during the first six month of the year.

Nationwide, the 137,798 bankruptcies in June represent a 9 percent increase from last year, according to the American Bankruptcy Institute.

“Debt burdens, unemployment and an uncertain economic climate continue to weigh on consumers,” Samuel J. Gerdano, the institute’s executive director, said in the statement. “The pace of consumer filings this year remains on track to top 1.6 million filings.”

The most common reasons for filing Chapter 7 bankruptcy in the Los Angeles area include bad mortgage debt, credit card debt, medical bills and divorce.

Last year's 1.4 million consumer bankruptcy filings represented an increase of 32 percent over 2008. In fact, bankruptcies have increased steadily since the implementation of the Bankruptcy Abuse Prevention Act. That law, which was pushed through by the banking industry, sought to make it more difficult to file Chapter 7, or liquidation, bankruptcies. It establishes an income to debt ratio and can require a repayment plan in certain instances.

But the reality is that insurmountable levels of consumer debt is what drives bankruptcy filings. Bankruptcy offers consumers the most powerful tool available to stop debt collectors, foreclosure, or other harassment while a consumer regains control of their financial life.

Continue reading " Nation on pace for record number of bankruptcy filings; Orange County is no exception " »