United Law Center Bankruptcy Dept. Concerned about Typical Eight-Year Bankruptcy Surge Cycle
(Sacramento, Calif.) — Going into a Presidential election, the American economy needs to be a major priority in the discussion. Bankruptcy industry experts including United Law Center’s own attorneys are concerned about a typical eight-year economic cycle showing signs of returning. Looking back over various economic crises the past 25 years (1992 and 2000) and typically there has been a surge of bankruptcies about eight years later (2000 and 2008). Thus, experts are watching closely for signs of this surge to potentially hit in 2016. A June 2016 Forbes article provides data pointing in that direction via a report by the Federal Reserve. United Law Center feels this is a very real possibility as they continue to see many homeowners struggling to keep their homes and fight with their mortgage servicer for loan modifications or defend themselves against foreclosure.
America is in for another economic hit in terms of the next wave of bankruptcies, based on historical trends. In a recent Forbes article that was in response to a Federal Reserve report on “how well Americans and the American economy are doing”, the outlook isn’t rosy. According to the report, “31%, or approximately 76 million Americans, are ‘struggling financially’ or ‘just getting by’ right now”. Also revealed is that, “46% of American adults say they can’t cover an emergency $400 expense or would have to borrow or sell something to do so.”
“The negative economic signs highlighted in the Federal Reserve’s report are concerning,” explained Stephen J. Foondos, founder and managing partner of United Law Center. “These signs are not surprising to us as we continue to see families victimized by mortgage servicing companies. Trial after trial is proving that mortgage servicers are doing more harm than good in their current level of industry regulation.”
Moreover, the easy access to high-interest money loans, or unsecured “payday loans” are reminiscent of the sub-prime loans of the 2000s. Not only are the loans risky, but are recourse loans where a defaulting borrower will face collection effort including a potential lawsuit. This, in turn, is likely to result in a higher rate of bankruptcies.
With 10 published decisions, ULC has created a legal platform in California to help protect homeowners in this state from the unlawful practices of many mortgage servicers and banks. However, the servicing industry is in need of serious regulation to really see change and improvement in customer service.
“Bankruptcy should never be considered lightly. It is not always the best option, even in the situation of a foreclosure,” added Foondos. “We know both sides of the equation when it comes to bankruptcy and foreclosure. We can guide clients on the best path for their unique case. If bankruptcy makes the most sense, our Bankruptcy Plus program experts will make sure it is done properly and comprehensively.”
Bankruptcy, although not always the first option to consider, is designed to give people the “fresh start” they need by relieving them of overwhelming and burdensome debt. Bankruptcy can also be an alternative to losing the family home when no other option is available.
On a personal level, the economic trend is reflected in the inability of people to meet their everyday obligations. With high-interest personal loans and credit card balances skyrocketing, student loan obligations coming due and higher taxes, people find they can’t meet all their debts when they come due. Sometimes the ordeal of an unsuccessful mortgage modification leaves a homeowner far behind in their mortgage payment. When these obligations are each demanding urgent attention, many people find that not only is bankruptcy their only option, but a very effective and comfortable option for them too.
About United Law Center
United Law Center is the consumer law firm leading the litigation charge in homeowner defense for foreclosure and other mortgage violations. ULC is also a leading provider of Bankruptcy counsel and representation. With ten published cases in California, United Law Center is securing case law in favor of homeowners fighting banks to keep their homes. United Law Center protects homeowners against consumer law violations. To determine if a homeowner has a valid case, they are encouraged to visit www.unitedlawcenter.com or call 916-367-0622 to schedule a free, no-time-limit consultation.