(Bankruptcy Alternatives)
Since 2007, the financial world as we know it has undergone dramatic changes.
Wall Street dominates main street, financial institutions appear to have more potential influence than our legislators, and the middle class is dwindling as a result of the rapid spread of foreclosures and unemployment in our country.
There are various causes for these phenomena.
The story begins with the introduction of subprime mortgages, a lending product with colossal flaws founded on the fatal financial assumption that property values would continue to rise annually by at least 15% indefinitely. This product was then resold to investors as a ""mortgage derivative"" and to banks and financial institutions across the globe, with the assumption that home values would continue to rise permanently.
In 2007 and 2008, as it became evident that real estate values had not only peaked but were also declining, financial institutions began to fail one by one. The subprime loan and its derivatives were a lethal contagion that brought down the Wall Street titans. The banks and financial institutions had made a fatal miscalculation by banking on the subprime product. The """"Great Recession"""" had begun in earnest, wiping out once-thriving real estate, construction, and manufacturing industries in the United States.
Seeing the financial system's desperation at the time, the administration was able to construct a """"white knight"""", the $750 billion bailout. Given our tax dollars to the banks, their disasters were postponed, and they arose from their financial """"death bed"""".
As these funds temporarily stabilized the financial institution's accounts that had not yet failed, a peculiar pattern began to emerge. Fear prevented banks from extending credit to borrowers frantic to save their homes and businesses. This marked the beginning of the mortgage modification programs' cruel deception. After being revived by an unprecedented infusion of our tax dollars, the banks and financial institutions that caused the subprime crisis left the middle class struggling and the homeowner teetering. After 15 million foreclosures, the middle class has been forced to plead for assistance.As a bankruptcy attorney for the past 29 years, I have witnessed numerous economic ups and downs. Recessions in the early 1980s and the early and late 1990s had some effect on various economic sectors. Rich and impoverished individuals sought my counsel. In most instances, we were able to guide the client to financial recovery, and the economy continued to advance.
Now there is a new and troublesome clientele with urgent and severely damaged financial and psychological states. This is the abandoned middle class.
When they enter my office six times per week, they are mistrustful. They have been defeated by a system that has supported them their entire existence. They have lost their retirements, their jobs, and have generally depleted all funds in an effort to keep a property they have lost or are on the verge of losing.
They are displeased with a $750 billion bailout plan that only aided financial institutions. Since its inception, the mortgage modification system has been incompetent and clumsy, much to their ire. Their accounts of misplaced documents, erroneous advice, broken promises, and extreme dread and frustration have caused a number of individuals to experience physical and emotional issues. Many require medical care for prescriptions and counseling, all of which are directly related to their unresolved financial stress.
Many attribute their financial difficulties to themselves. Here is where the more seasoned bankruptcy attorneys come into play. The clients must be aware that millions of people who are attempting to save their property or maintain their financial stability are experiencing the same humiliating, demeaning, and stressful circumstances. There is no self-blame, only economic mistakes at the topmost level that have now ricocheted down to the middle class with devastating consequences (record bankruptcy filings and record foreclosures in 2010).Bankruptcy is the last resort for the majority of individuals. As I previously stated, however, the fundamentals of the financial world have changed. Chapter 7 (simple bankruptcy) and Chapter 13 (reorganization) are now middle-class protection and preservation instruments. These Chapters are designed to help you retain your home and business, as well as eliminate your credit card, medical, tax, and foreclosure debt.
In 2008, when financial institutions (your creditors) lined up to receive bailout funds to remain afloat, the stigma or embarrassment associated with filing for bankruptcy disappeared. Many banks, mortgage companies, and other financial institutions have been bailed out with your tax dollars, have declared bankruptcy, or are under investigation or indictment for illegal lending practices. Goldman Sachs, which allegedly profited from these investors, also placed private wagers on the depreciation of subprime loans. Goldman Sachs settled with the government for $500 million for allegedly playing both factions and profiting. Yet, despite this egocentric behavior on the part of creditors, borrowers are still reluctant to consult a bankruptcy expert. They continue to be victimized in epidemic proportions by fraud modifiers and so-called repayment plans.
The stigma of bankruptcy has vanished alongside our retirement accounts and foreclosed homes. If you identify with any of the previously described furious, disillusioned, financially struggling individuals or families, please visit my office for a free consultation. Learn about the creditor protection offered by the federal courts. You owe it to yourself and to your loved ones.""
" - https://www.affordablecebu.com/
