November 17, 2011

Number of Bankruptcies fall in Tampa Bay Area

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The number of people and businesses filing for bankruptcy in the Tampa Bay area has fallen over the months. But this may not mean people have overcome their financial woes. The reduction in bankruptcy filings may indicate that banks are slowing down on foreclosures, resulting in less people filing for bankruptcy to bail themselves out.

In the year ended September 30, slightly less than 57,000 individuals and businesses filed for bankruptcy in the Middle District of Florida, a region that stretches from Fort Myers to Jacksonville and includes Tampa. This represents a drop of 14.8% over the year. Business bankruptcies fell by 16.7% in the district while personal bankruptcies saw a drop of 14.7%. If you consider only Tampa alone, the percentages are also about the same, but the numbers are understandably lower compared to the whole Middle District of Florida.

Although no one is able to precisely pinpoint the reason for the significant drop in bankruptcies, the fewer foreclosures by banks is one generally accepted reason. Many banks who faked foreclosure documents got into so much trouble that they ceased foreclosure actions until they could make sure their documents were legitimate. The number of foreclosures for October 2011 fell by a hefty 59% year on year according to RealtyTrac, a foreclosure research firm.

In the meantime, other banks simply do not want to have the headache of foreclosing on too many houses. Some of the many problems that come with foreclosure include actions by delinquent homeowner associations, deliberate non-payment of dues by homeowners etc. Some homeowners are of the thinking that they can drag their feet in paying the banks because their neighbors have not paid for many months without any action taken against them.

Other possibility why bankruptcy filings have decreased is that there is less credit card debt these days as banks become more lenient with businesses. Generally of late, banks have been more willing to deal with delinquent businesses. People do not have as much access to credit as they did before the recession and many people are using their cards more sparingly. A recent report by the Federal Reserve shows that in the past three years, credit card use has fallen nearly 19%.

On the national level, last week, the Administrative Office of the US Courts reported that bankruptcy filings had fallen 8 percent nationwide in the fiscal year ended Sept. 30.

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Filed under Chapter 7 (Tampa) by dmishesq on Nov 17th, 2011. Comment.

December 28, 2010

10 Things to do After Bankruptcy part 2

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In part 2 of this article, I will tell you more about what you should do to re-establish your credit standing after being discharged from bankruptcy:

6. Apply for a Secured Credit Card

A secured credit card is one that is backed up by cash. You give some money to the credit card company and in exchange, they grant you a credit card up to the limit of the money you gave. But when you are granted a secured credit card, be sure that the three credit bureaus are informed of it. Ask if the credit card company has reported it.

It is important that you insist that all three credit bureaus are informed of the issuance of a secured credit card to you. This is because if you need to apply for another form of credit, your lender may only look at the credit report from one credit bureau. This might cause your application for credit to be denied even though you hold a secured credit card.

Most creditors look at a combination of the credit reports from all three credit bureaus. Hence one bad credit report from a credit bureau may lower the score of the other two bureaus and deny you a loan.

It is also wise to find out from the credit card company when you are allowed to increase your credit line and when you may apply for an unsecured credit card. Try to find a lender who will help you improve your credit.

7. Apply for an Unsecured Credit Card

As soon as you can, apply for an unsecured credit card. Some credit card unions offer low-limit credit cards for those who have been discharged from bankruptcy. These low-limit credit cards can help you reestablish your credit score but you need to ensure that the credit union reports your credit line to all three credit bureaus. Then be prompt in your repayments so that you can have an increased credit limit.

8. Deal with Larger Institutions

Wherever possible, do business with banks and credit unions, rather than finance companies or rent-to-own lenders. This is because generally, your credit score will be higher when you have business dealings with larger institutions.

9. Aim to Re-establish your Pre-bankruptcy Credit Score

Have a plan to reestablish your pre-bankruptcy credit score. Be determined to have a good credit score again.

10. Do Not Give Up

It is almost certain that you will be rejected the first few times you try to re-establish credit. But be optimistic because many people have been in your situation before and through persistence, they have been able to re-establish their credit scores.

If you wish to discuss filing for bankruptcy, give us a call at (813) 200-4133 for a free consultation.

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Filed under Chapter 7 (Tampa) by dmishesq on Dec 28th, 2010. Comment.

September 12, 2010

Former Bank Boss Close to Bankruptcy

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Former chairman of Anglo Irish Bank, Sean FitzPatrick is set to be declared a bankrupt by the court when it blocked his attempt to agree on settlement terms with his creditors. In a meeting with his creditors in his Dublin office, FitzPatrick apologized to them saying that the financial crisis had left him in severe difficulty as almost his entire net worth consisting mainly of shares in Anglo, AIB and the Bank of Ireland had been wiped out. At the meeting also, FitzPatrick gave details of a proposed arrangement which would give him time to repay creditors some of their debts as his assets are sold in order over a period of time. He also apparently offered his family home and half of his pension as part of the settlement proposal but his creditors were not interested.

FitzPatrick’s largest creditor is state-owned Anglo Irish Bank, to whom he owes €110 million which represents about 70% of his total debts. The bank is blocking his settlement proposal, leaving FitzPatrick facing almost certain bankruptcy. His proposal for settlement required the support of 60% of his creditors based on the number and value of the debts.

Since Anglo held more than 40% of FitzPatrick’s debts, it asked the court last month to declare its former chairman a bankrupt. Furthermore, contends the bank, without its support any proposal for settlement would never gain sufficient approval. The court will hear the case again on Monday when bank creditors are scheduled to vote on the proposed settlement.

According to a reliable source, FitzPatrick may preempt the move by the court to declare him a bankrupt by applying for bankruptcy himself. He is expected to declare his total overall debts at about €150 million and assets at about €70 million, leaving him a shortfall of about €80 million.

FitzPatrick explained to his creditors that his assets were massively reduced when his shares in the banks devalued. FitzPatrick owned 4.5 million shares in Anglo that were worth €80 million at its peak in 2007 but became effectively worthless after the bank was nationalized in early 2009 just after it was discovered that he had hidden millions of euros of loans over eight years. FitzPatrick still faces a criminal inquiry into his dealings when he was chairman of the bank and could still be sent to jail.

In support of his proposed settlement, FitzPatrick’s financial advisors told creditors that accepting his proposal would be more beneficial to them than bankruptcy which would be a more long-drawn and expensive affair. A few of the creditors supported his proposal.

Besides Anglo, other creditors of FitzPatrick’s include investment firm Friends First, the Bank of Scotland (Ireland), Ulster bank and its sister bank, First Active, Haven (subsidiary of EBS Building Society), AIB and Revenue.

No matter what job you hold, what social status you may have, you may still be struggling financially through these tough economic times. If you have debts that are too much for you to repay, consider filing for bankruptcy protection. Call us for a free consultation at (813) 200 4133 or visit http://tampabankruptcy.pro.

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Filed under Chapter 7 (Tampa) by dmishesq on Sep 12th, 2010. Comment.

July 15, 2010

How to Rebuild your Credit after Bankruptcy

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Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.

Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.

So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.

Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.

Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.

If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.

Related Blogs

Filed under Chapter 7 (Tampa) by dmishesq on Jul 15th, 2010. Comment.

July 1, 2010

How to Rebuild your Credit after Bankruptcy

1

Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.

Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.

So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.

Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.

Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.

If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.

Filed under Chapter 7 (Tampa) by dmishesq on Jul 1st, 2010. 1 Comment.

Banks

Number of Bankruptcies fall in Tampa Bay Area

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10 Things to do After Bankruptcy part 2

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Former Bank Boss Close to Bankruptcy

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How to Rebuild your Credit after Bankruptcy

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How to Rebuild your Credit after Bankruptcy

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