Was Declaring Bankruptcy A Smart Decision?

Was Declaring Bankruptcy A Smart Decision?:
Nadya Suleman has made no secret of her financial troubles, which came to a head this week when the “Octomom” filed for bankruptcy. The mother of 14 owes creditors nearly $1 million, court papers showed, roughly 20 times as much as the value of her assets. ”It is pretty extreme in terms of how much debt she has,” says Richard Hipp, manager of bankruptcy operations at non-profit credit counselling organization In Charge Debt Solutions. The bankruptcy might give Suleman a fresh start, but the filing means that her creditors — which include a Christian school and her own father — are out of luck.

Suleman filed for Chapter 7 bankruptcy, in which a debtor’s assets are liquidated and nearly all unsecured debt is discharged. This might seem like a more drastic option than Chapter 13, which lets filers hang onto some assets — such as a house or a car — if they agree to enter a repayment plan. Before filing, a person considering bankruptcy has to meet with an attorney and go through a means test, which helps determine which type of bankruptcy is most appropriate for them. The test compares the person’s monthly expenses and income to see how much is left over that could be used to pay off debt.

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Thank you, Ian {Editor}  

" One Persons Story Of Being In Debt"

Have you ever considered how to borrow money when you really need help and guidance maybe listening to this story you will be able to appreciate how other people can help you. This is one such account of Lissette and is well worth a listen and please comment using our comments box.

All the posts are provided by me and any comments l provide are my own view of the markets and are not the views of the article writer and or news provider.

" Pay Day Loans And The Consumer Financial Protection Bureau

These loans originally started in the US and are now commonplace in the UK and are not the type of funds anyone should be contemplating as an easy fix solution to short term borrowing. If you are or need advice leave a comment but can l suggest you listen to this video and it may help you to avoid the problems that you may have with this type of lending.

I will be writing more on this subject very shortly and providing in depth terms and conditions of lenders you should avoid and those that are not as bad.  

All the posts are provided by me and any comments l provide are my own view of the markets and are not the views of the article writer and or news provider.

NB Please ignore the note about comments being closed as it applies to youtube and not our our comments box, you can log into any social media and share this we need to spread the word.   

MBA Delinquency Survey: Comments and State Data

MY VIEW AND FEELINGS ABOUT THIS SURVEY -

As people now have a penchant for buying in the areas of sunnier areas of the US such as Florida and California then it would hold true that they would now have the highest amount of properties in state of foreclosure. As we tend to attract people to these types of property in these area then the tendency will be that numbers will rise and eventually as with all global financial changes we should and will see a drop in prices, due to lack of prosperity in these areas of the US.

MBA Delinquency Survey: Comments and State Data: A couple of comments from MBA chief economist Jay Brinkmann on the conference call:



• The bad news is short term delinquencies increased in Q2. The not-so-bad news is long serious delinquencies declined slightly.



• Because of the high level of delinquencies, there are some questions about the accuracy of the seasonal adjustment.



• Florida has almost 25% of all loans in the U.S. in the foreclosure process. California is 2nd with 10.6%, but the percent of loans in-foreclosure in California (3.62%) is actually below the national average (4.43%).



• Judicial foreclosure states usually have the highest percentage of loans in the foreclosure process.



Click on graph for larger image in graph gallery.



This graph shows the percent of loans in the foreclosure process by state and by foreclosure process. Red is for states with a judicial foreclosure process. Because the judicial process is longer, those states typically have a higher percentage of loans in the process. Nevada is an exception.



Florida, Nevada, New Jersey and Illinois are the top four states with percent of loans in the foreclosure process.



This graph shows all delinquent loans by state (sorted by percent seriously delinquent).



Florida and Nevada have the highest percentage of serious delinquent loans, followed by New Jersey, Illinois, New York, Ohio and Maine.



I'll post some more graphs later to show which states are seeing improvement.



Note: the MBA's National Delinquency Survey (NDS) covered "MBA’s National Delinquency Survey covers about 43.9 million first-lien mortgages on one- to four-unit residential properties" and the "The NDS is estimated to cover around 88 percent of the outstanding first-lien mortgages in the market." This gives almost 50 million total first lien mortgages or about 6.4 million delinquent or in foreclosure.



The third graph shows the number of loans delinquent in each state (as opposed to the percent). California is the largest state, so it is no surprise that the number of delinquent loans is very high (I'd expect California to always be #1). In that sense this graph is misleading - in reality California is in about the same shape as Indiana and Rhode Island (previous graph).



Florida has 7.6% of all loans, but almost 25% of all loans in-foreclosure and 18% of all seriously delinquent loans. In most ways, dividing this by states is arbitrary - except the foreclosure process matters.



Earlier:

• MBA: Mortgage Delinquencies increased slightly in Q2

All the posts are provided by my own and personal view of the global financial markets and are not always the views of the people who provided the post or article.

IMF Executive Board Concludes 2011 Article IV Consultation with Spain

After more than a decade of strong expansion led by a credit-fueled housing boom, the Spanish economy was hit by three major shocks: the global financial crisis, the busting of Spain’s domestic boom, and the euro area debt crisis. These shocks exposed Spain’s vulnerabilities stemming from accumulated imbalances and pushed the economy into a sharp recession, with the euro area debt crisis subsequently putting pressure on funding costs.


The economy has been gradually recovering and re-balancing. Growth has gradually picked up from the first quarter of 2010, led by strong exports as the re-balancing to external demand proceeded. Private sector savings-investment balances have improved, helping stabilize debt ratios and reduce the current account deficit. The housing market continued to adjust. Real wages moderated and unit labor costs improved. However, at around 21 percent, the unemployment rate is more than twice the euro area average. Inflation has picked up, led by energy prices and indirect taxes, and is again above the euro area average. A reform of collective bargaining aiming at greater firm-level flexibility was presented to Parliament in June 2011, complementing the June 2010 labor market reform.

All the posts are provided by my own and personal view of the global financial markets and are not always the views of the people who provided the post or article.

IMF Executive Board Approves Three-Year US$84.5 Million Stand-By Arrangement with St. Kitts and Nevis

The Executive Board of the International Monetary Fund (IMF) has approved a three-year Stand-By Arrangement (SBA) for an amount equivalent to SDR 52.51 million (about US$84.5 million) with St. Kitts and Nevis. The arrangement will support the authorities’ economic program, coupled with a comprehensive debt restructuring, to restore debt and external sustainability and set the stage for sustained growth.

As a result of the Board’s decision, an amount equivalent to SDR 22.15 million (about US$35.6 million) is available for immediate disbursement. The three-year SBA arrangement represents 590 percent of St. Kitts and Nevis’ (SDR 8.9 million) IMF quota. St. Kitts and Nevis joined the Fund in August 1984.

Following the Executive Board’s discussion of St. Kitts and Nevis on July 27, 2011,
Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, made the following statement:

“The St. Kitts and Nevis economy is gradually recovering from a prolonged recession. However, fiscal imbalances and structural fragility's pose significant risks to the economic outlook.

“The authorities have started to implement an economic program to address these challenges over the medium term. The main objectives of this program are achieving higher growth and a sustainable fiscal position. The authorities’ plans include front-loaded fiscal consolidation, a comprehensive debt restructuring, and further steps to strengthen the financial sector.