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December 2011 Archives

California WWII veteran caught off guard by foreclosure

Readers are probably aware that many California residents are experiencing the financial stress of foreclosure. But every American who is faced with financial difficulties deserves a chance to stop the foreclosure process in order to restructure and potentially discharge all debt. Unfortunately, however, one hard-working American -- a World War II veteran who defended against the attacks on Pearl Harbor -- has been unable to stop foreclosure even as he thought he had the helpful cooperation of a bank.The 91-year-old veteran is one of the 18 remaining survivors who were aboard the USS Arizona during the attack on Pearl Harbor in 1941. In fact, on the recent 70th anniversary of the attack, the man made his annual pilgrimage to the infamous site of the bombings.

Understanding California's Chapter 7 bankruptcy law

For many California residents, Chapter 7 bankruptcy may be an option for a fresh financial start. At issue, however, are questions regarding the various kinds of bankruptcy. Which is best for each individual? Well, it depends.In terms of consumer bankruptcy, Chapter 7 is often the best option. Under Chapter 7, the individual (or family, if married) is able to erase his or her debts and start rebuilding credit with a clean slate. But this does not come free of charge. In exchange for this chance to start afresh, the debtor may have to sell or liquidate some of his or her personal belongings. The bankruptcy trustee, in this case, will collect any nonexempt property and liquidate it in order to repay some of the debt owed by the debtor.

Chapter 11 offers breathing room for well-known developer

The term "overextended" is becoming increasingly common in the United States, as people in California and many other states are finding it more and more difficult to make ends meet. Recently a well-known land developer from up in Washington filed for Chapter 11 bankruptcy because, despite his many successes, he simply couldn't bridge the financial gap between income and debt.The developer, known for creating Bellis Fair Mall in Blaine, Washington, is now facing an $11 million lawsuit from Polygon Financial 05 LLC. Polygon foreclosed on one of the developer's properties when he defaulted on a $16 million loan. Filing for Chapter 11 reorganization puts a stop on all legal maneuvers taking place against the developer, and will allow him some breathing room to restructure and reorganize his current debt.

Many Americans seeking financial fresh start in stumbling economy

It's no secret that the American economy has been struggling in recent years. What may be surprising to California residents is that over the past year Americans have cut their credit card debts quite significantly. In an age when one would think bankruptcy would be inevitable for many people, it is surprising to discover that Americans have actually been able to reduce their credit card debt. There's a dark cloud to that silver lining, however.The average credit card debt across the country has fallen 11 percent this year. That is following a drop of 10 percent in 2010, according to a company that monitors credit card usage. In California, credit card debt has fallen by 13 percent from October 2010 through October 2011.