Bankruptcy Information

The U.S. Department of Commerce released data this week on personal income for November, and the numbers look modestly positive, with a 0.4 percent increase in personal income last month. Further, the numbers show that:

• Real disposable personal income rose 0.2 percent
• Wages and salaries increased by $16.1 billion
• Real personal consumption expenditures rose 0.2 percent
• The saving rate remained steady at 4.7 percent

These numbers show a different situation than a year ago, when personal income was on the decline, but many economists have cautioned that they may not be enough cause for celebration. To fully recover from the recession, it seems, more substantial increases are needed.

The Commerce Department also reported this week that consumer spending rose by 0.5 percent (0.2 percent after adjustments for inflation) last month, likely a byproduct of the slight bump in income.

New Home Sales Fall

On a less positive note, data from the Census Bureau show that single-family home sales plummeted last month to 355,000, which represents an 11.3 percent drop from October and the lowest rate in seven months.

The combination of these indicators has some analysts worried about the ability of the U.S.

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Tags: November, Personal Income

In a nutshell:

• Even when the debt buyer did respond to a demand for proof that the consumer owed the debt, its own documentation often proved the opposite.
• In many instances debt buyers sued consumers when they clearly had no legitimate claims. Debt buyers sued in cases of identity theft and mistaken identity, when their records did not reflect payments by the defendant, and when the debt was beyond the statute of limitations.
• In 27% of the cases surveyed, consumers only learned of the lawsuit after their salary was garnished or bank account restrained.

What’s the upshot here? Pretty simple, at least to me:

• Debt buyers sue people who don’t owe them any money
• Debt buyers don’t typically bother with “technicalities” such as proving that the debt is owed before rushing into court
• Debt buyers hope that the consumer will just roll over rather than fight the case

And the biggie …

If you fight back, chances are very good that you’ll win the case.

Want to read the report? Click here fo

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Tags: Debt Buyers, Prove

The recession has been hard on a lot of Americans, in part because the decreased availability of credit now means that many people are seeing their accounts limited or closed for what seem like mysterious reasons.

Here’s a look at some potential explanations for why you may have seen your limit shrink recently.

• Changes to Your Credit Score: Many card issuers have a certain minimum credit score cardholders must maintain in order to keep their accounts open. If your score falls below that number, you may see some of your credit yanked.
• Negative Credit Action: Opening a new credit account, defaulting on an account, missing a payment, having a credit inquiry (which usually happens when you apply for a new line of credit), changing how much debt you carry, using your cards more than usual and having too many of your accounts in dispute could all cause one of your card issuers to close or limit your account.
• Neighborhood Problems: In some cases, living in “high risk” parts of the country (where unemployment or foreclosure rates are especially high) could be enough to affect your credit.
• Tough Times: Sometimes financial difficulties that haven’t directly affected a credit account can cause a card issuer to preemptively alter interest rates or credit limits. Such di

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Tags: Credit, Cuts Credit

The State of Alabama does not have federal bankruptcy exemptions like some states. It does, however, allow for certain possessions to be exempt or protected from creditors when filing for bankruptcy in Alabama.

There are some limits on the amount of equity that you may have in a home or vehicle that is exempted in the bankruptcy. Equity is defined as the difference in the value of an item and the amount of debt owed on a lien against the item. If the item, such as home or vehicle, is secured by a loan and payments are made on time, the equity is protected by your exemptions.  If you choose to keep the property, continual timely payments ensure that the property is protected through the bankruptcy.

For couples filing for bankruptcy protection, each person can claim a full set of exemptions unless otherwise noted.

Here is a list of assets protected by the Alabama Bankruptcy Exemptions:

1. Homestead – Real property (a building on actual land) or mobile home to $5,000. The land cannot exceed 160 acres for each person filing. Al

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Tags: Alabama, Bankruptcy Exemptions

Bankruptcy fraud has gone largely un-prosecuted this year, thanks to greater attention being paid by FBI investigators to other types of white-collar crime, according to a report from Bloomberg News.

According to sources, only 82 cases of bankruptcy fraud were tried in the fiscal year ending September 30. This total is apparently the lowest it’s been in about 25 years, and some experts claim that it’s causing willful fraudsters to take advantage of the bankruptcy court.

1.4 Million Bankruptcy Cases

In the 12-month period that ended in September, 1.4 million bankruptcy cases were filed in the U.S. bankruptcy courts. Combine that with a 2003 report from the inspector general of the Justice Department that estimated bankruptcy fraud occurred in as much as 10 percent of cases (so up to 140,000 potentially fraudulent cases), and you can see that 82 is a surprisingly low total.

But, as reports indicate, that estimate may no longer be valid.

Avoiding Fraud When You File

Decreased federal attention to bankruptcy fraud shouldn’t mean you proceed any more carefully in your case, though. Bankr

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Tags: Bankruptcy Fraud, Fraud