In the 1990s Robert Kiyosaki wrote the book "Rich Dad, Poor Dad." The book, which gave personal financing tips, put the author on the New York Times Best Seller list. He also went on to write other books regarding finances, including "Midas Touch" and "Retire Young, Retire Rich."
In our current economy, we all know it can be rather hard trying to find a new job. Unemployment rates are high and many companies are in the position of cutting back instead of adding new jobs. This in turn has led to many falling behind on bills and many others losing their homes to foreclosure.
Personal bankruptcy is a debt resolution thousands of people in Florida and around the country have used in order to get their finances in order. But, even though the process is rather common, many consumers still approach bankruptcy hesitantly amid fears that their credit will be destroyed if they file. However, this is not always the case, especially when filers make a conscientious effort to improve their credit afterwards. For example, consumers who have successfully exited Chapter 13 bankruptcy typically become eligible again for Federal Housing Administration mortgages just one year later. With a Chapter 7 bankruptcy, it's two years. And while with more conventional providers the wait could be extended, the point is that ineligibility is not necessarily forever.
With the current economy we tend to focus on the companies that have had to file for bankruptcy due to financial struggles. Of course this is hard for the owners, many times having to shut down a business they had run for years and years. But, along those same lines it's also important to keep in mind that there are the people who have worked at these businesses. Often, after the business bankruptcy they find themselves trying to find a new job, which -- again due to the economy -- isn't always easy.
A three Judge panel of the Eleventh Judicial Circuit, which includes the states of Alabama, Georgia and Florida, recently held that a second mortgage could be stripped or removed as a lien on a home where the value of the home is less than the amount owed on the first mortgage in Chapter 7. This decision may be short lived because the losing party has moved for the full panel of the Eleventh Circuit (all nine justices) review the case. We expect a final ruling in October, 2012.
These days many Florida residents are facing the consequences of having accumulated overwhelming debts, such as credit card debt, mortgages and car loans. There can be many reasons for these financial hardships including job losses, medical expenses and the housing market crash that has hit Florida particularly hard.
Financial challenges can hit any business or organization, even those nonprofits working to provide education and support to others. However, just like any other business, decisions made years earlier in how to run an organization can end up coming back and really financially hurting the livelihood of a group.
Following a national trend, personal bankruptcy filings were down for the first four months of the year. Of course, while some are pointing to this as a sign of the downward economic trend finally starting to turn around, others are staying cautious as extended unemployment benefits are expected to be phased out and banks are once again initiating foreclosures.
A Florida business owner recently filed for bankruptcy. The news of this Chapter 7 bankruptcy filing comes less than two months after the two Subway stores he owned in Pompano Beach and Lauderdale-by-the-Sea closed.
Right now "Octomom" Nadya Suleman is in dire financial straits. She is relying on food stamps and Social Security disability, while also owing up to $1 million to creditors. And, to make matters even worse for the single mother of 14, she is $30,000 behind on rent payments on a home where the owner is also struggling. A foreclosure action on that home is scheduled for next week.