Bankruptcy Filings Dropping More Rapidly Than Expected

posted by Bob Lawless

According to the most recent data from Epiq Systems, there were 120,800 bankruptcy filings in August for a daily bankruptcy filing rate of 5,250. The August daily filing rate represents a year-over-year decline of 14.8% and a decline of 3.5% from July 2011.

These latest figures represent a somewhat deeper drop in bankruptcy filings than I had expected based on my earlier forecast of a 5-10% decline for all of 2011. With the past four months showing year-over-year declines of 10% or higher, it is beginning to look like the annual decline in the bankruptcy filing rate will be above 10%.

In recent years, the last third of the year has seen, not surprisingly, about one-third of the bankruptcy filings for the year. Assuming that pattern continues, there will be between 1.41 and 1.43 million bankruptcy filings for all of 2011.For those who like to look for economic indicators in the bankruptcy filings, you can stop right now. On a per capita basis, the U.S. bankruptcy filing rate is down 12.5% from 2004. Today, we are experiencing about 4.7 bankruptcy filings per 1,000 persons as compared to 2004 when there were 5.5 bankruptcy filings per 1,000 persons. Also, you probably can’t attribute all or even most of the drop in bankruptcy filings today to the 2005 bankruptcy law. In 2009 and 2010, we were very close to the 2004 per capita bankruptcy filing rate, suggesting the currently low rate stems from other forces, most likely the ups and downs in the availability of consumer credit.

 

The Debt

FDIC Consumer News Can You Spot a Scam?

Can You Spot a Scam?

Test your knowledge of common frauds and their warning signs by taking our quiz

Con artists are very good at tricking consumers into parting with money or divulging personal information that can be used to steal funds or run up thousands of dollars in fraudulent credit card charges. How good are YOU at telling a scam from a legitimate offer or advertisement?

FDIC Consumer News frequently publishes articles about common frauds to avoid, but here we want to put your knowledge to the test.

1. You agree to sell your valuable collection of superhero comic books from the 1960s to a complete stranger who mails you a cashier’s check. Because you want to be sure the check is “good” before you part with your prized possessions, you should:

(a) Confirm that the dollar amount and your name on the check are correct. Apart from that, cashier’s checks are always safe to accept.

(b) Deposit the check into your bank account and wait at least two business days before letting go of the items.

(c) Contact the bank that issued the cashier’s check to make sure the check is legitimate.

2. You agree to rent your vacation house to a far-away stranger who sends you a check as a deposit, but when the check arrives, it’s for more money than you agreed upon. The person apologizes and asks you to deposit the check and wire back the difference. This is:

(a) Safe for you to do because you’ll be depositing a check for more money than you expected anyway.

(b) Safe for you to do because, if there’s a problem, money sent by wire is very easy to recover.

(c) Likely to be a scam.

3. You post your resume on a Web site for job seekers and soon you receive an offer to work at home. The deal could be a scam if you are:

(a) Promised a lot of money for doing very little work.

(b) Asked as part of the job application for your bank account and Social Security numbers.

(c) Told you will “process payments” for a foreign company.

(d) All of the above.

4. You’ve just realized that your ATM/debit card has been lost or stolen. To get the maximum legal protection against losses from unauthorized withdrawals, you should notify your bank:

(a) Within two business days of discovering the card missing.

(b) Within 10 business days.

(c) Before your next statement arrives, even if that is weeks later.

5. A company offering to rescue your home from foreclosure may be running a scam if it:

(a) Says it will stop the foreclosure from taking place.

(b) Suggests that you transfer ownership of the home to the company so you can rent and buy the property back from them.

(c) Advises you to stop talking to your lender, lawyer or housing counselor.

(d) All of the above.

6. If you get an e-mail from a federal government agency such as the IRS or the FDIC asking you to confirm or verify personal financial information, it’s always safe to do so.

(a) True.

(b) False.

7. Your credit report may suggest that you have been a victim of identity theft if it shows:

(a) You have a credit card, loan or lease in your name that you know you don’t have.

(b) A company you never tried to do business with has requested a copy of your credit report.

(c) A home address for you that you never had.

(d) All of the above.

Check the Answers

http://www.fdic.gov/consumers/consumer/news/cnfall10/fraudquiz.html

10 Reasons I’m Cancelling My Credit Cards

 

 

 

 

 

By BRETT ARENDS

The dollar bill needs you.

A growing number of merchants won’t accept cash anymore. That includes a lot of airlines, which insist you pay by credit card if you want to buy a drink or a sandwich on board. And now comes news that the U.S. Treasury is printing fewer dollars, as we move towards an all-plastic economy.

Great news for the banks. Great news for the card companies. Great news for the marketing establishment, which can now pore through our transactions and our personal lives in greater and greater detail.

Me? Call me a contrarian, or just call me ornery, but I view this with gloom. This not a step forward. It’s a step backwards. Personally, I’ve been moving the other way. I’ve cut down on my use of credit cards and debit cards. The latest news is the final push I needed to get them out of my life completely. I’m going all cash.

http://www.smartmoney.com/spend/family-money/10-reasons-im-cancelling-my-credit-cards-1310065287880/?link=SM_hp_featStory

 

 

Knee Deep in Debt

Having trouble paying your bills? Getting dunning notices from creditors? Are
your accounts being turned over to debt collectors? Are you worried about losing
your home or your car?  You’re not alone. Many people face a financial crisis
some time in their lives. Whether the crisis is caused by personal or family
illness, the loss of a job, or overspending, it can seem overwhelming. But
often, it can be overcome. Your financial situation doesn’t have to go from bad
to worse.

If you or someone you know is in financial hot water, consider these options:
realistic budgeting, credit counseling from a reputable organization, debt
consolidation, or bankruptcy. Debt settlement is yet another option. How do you
know which will work best for you? It depends on your level of debt, your level
of discipline, and your prospects for the future.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm

Warnings Going Out About Debt Collection Scams (NC) US

North Carolina NC

The North Carolina attorney general is the latest public official to sound a warning about illegal debt collection scams. But his office isn’t the only one trying to inform the public on the difference between legitimate debt collectors and crooks.

Attorney General Roy Cooper of North Carolina raised the warning flags in a statement Friday. He said that his office had received dozens of complaints recently about debt collection calls that did not seem legit. A distinct pattern developed in which the callers would purport to be from groups that sounded vaguely governmental, like the “Federal State Bureau of North Carolina.”

When Cooper’s office began to investigate, it found that most of the victims had recently taken out payday loans on the Internet. Further, the office said that the calls appeared to be coming from overseas.

The warning is the latest in a series of official acknowledgements that there is a major difference between legitimate debt collection calls and ones initiated by scammers.

Late last year, the Mississippi Attorney General — with the help of ACA International — issued his owne warning about phony debt collection calls also related to payday loans. Various Better Business Bureau offices have also been sounding alarms within their jurisdictions.

But some officials are still conflating the issue. In March, the Missouri Attorney General listed debt collection on his “top scams” report for 2010, failing to make a distinction between honest debt collection and criminal efforts. It took the intervention of the Missouri Collectors Association to clarify the mistake.

by Patrick Lunsford

Credit Repair Takes Time

Credit Repair: How to Help Yourself
You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services. They all make the same claims:

“Credit problems? No problem!”

“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

“We can erase your bad credit — 100% guaranteed.”

“Create a new credit identity — legally.”

The Federal Trade Commission (FTC) says do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm