The New Economics
(Bankruptcy Options)
Since 2007, the dynamics of the financial world, as we know it, have changed dramatically.
Wall Street dominates main street, financial institutions appear to have more potential pull than our politicians, and the middle class is slowly disappearing as a result of a plague of foreclosure and unemployment quickly spreading around our country.
These events have many causes.
The story begins with the introduction of the sub-prime mortgage: A lending product with colossal defects based on the fatal financial assumption that property values would continue to rise (15% or more) each year for an indefinite period. This product was then resold to investors as a "mortgage derivative" and to bank and financial institutions, all around the world, all assuming a permanent appreciation in home values.
Bankruptcy Attorney Detroit, Bankruptcy Attorney Las Vegas, Filing Bankruptcy,
In 2007 and 2008, when it became clear that real estate values had not only peaked but were falling, financial institutions began failing one by one. A killer virus, the sub-prime loan and its derivatives, was toppling the mighty Wall Street giants. The banks and financial institutions, betting on the sub-prime product, had made a fatal miscalculation. The "Great Recession" had begun in earnest eliminating a once vibrant real estate, construction and manufacturing industry in our country.
At that time, seeing the desperation in the financial system, the administration managed to create a "white knight", the $750 billion bailout. Our tax dollars, given to the banks, postponed the banks failures, and they rose out of their financial "death bed".
As these funds stabilized the books of the financial institution that hadn't already failed, for the time being, a curious trend began to develop. Banks were afraid to lend to borrowers desperate to save their homes, and businesses. This began the cruel hoax known as the mortgage modification programs. The banks and financial institutions who created the sub-prime disaster, after being revived by an unprecedented infusion of our tax dollars, left the middle class struggling, and the homeowner dangling, Fifteen million foreclosures later, the middle class has had to beg for its bailout.As a bankruptcy attorney for the last 29 years, I have seen the various upturns and down turns of the economy. Recessions in early 80's, and the early and late 90's created some impact in various sectors of the economy. Rich and poor came into my office for advice. In most cases we were able to the client to financial recovery and the economy marched on.
Now there is a different and troubling set of clients with urgent and deeply scarred financial and personal psyches. These are the betrayed middle class.
As they march into my office six days a week, they are mistrusting. They have been beaten down by a system that has worked for them all their lives. They have lost their retirements, their jobs, and generally exhausted all funds to keep a home they have either already lost or are on the verge of losing.
They are angry at a $750 billion bailout package that helped only the financial institutions. They are angry at a mortgage modification system that has been bumbling and inept since its inception. Their stories of lost documents, wrong advice, broken promises, and extreme fear and frustration, have caused many to have physical and emotional problems. Many require medical care for prescriptions and counseling - all directly related to their financial stress that has no resolution.
Many blame themselves for their financial problems. This is where the more experienced bankruptcy attorneys step in. The clients all need to know that the millions of people who are trying to save their home or otherwise keep financially afloat, are going through the same embarrassing, disrespectful, stress inducing experience. There is no self blame here, only economic blunders at the highest level that have now ricocheted down to the middle class, with devastating effects (Record bankruptcy filings and record foreclosures in 2010).Bankruptcy is the last option for most people. However, as I said, the physics of the financial world have changed. Chapter 7 (simple bankruptcy) and Chapter 13 (reorganization) are now tools of protection and preservation for the middle class. These Chapters are Federal Law and designed to help you keep your house and business and eliminate credit card, medical bills, certain taxes and foreclosure debt.
The stigma or embarrassment of filing bankruptcy evaporated when the financial institutions (your creditors) lined up to receive their bailout funds to stay afloat in 2008. Banks, mortgage companies and other financial institutions have either been bailed out by your tax dollar, filed their own bankruptcies, or in many cases are under investigation or indicted for unlawful lending practices. Goldman Sachs, who allegedly made money off of these investors, also wagered privately that the sub-prime loans would lose value. Goldman Sachs paid a $500 million settlement to the government for allegedly playing both sides and profiting. Yet, despite this selfish behavior by creditors, borrowers are still reluctant to seek advice from a bankruptcy professional. They continually fall victim to the scam modifiers and so-called repayment plans in epidemic numbers.
The bankruptcy stigma has disappeared along with our retirement accounts and foreclosed houses. If you identify with any of the angry, disillusioned, financially struggling individuals or families previously described, come into my office for a free interview. Find out about the protection from creditors offered by the federal courts. You owe it to yourself and your family.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Law Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment