According to a report by the Washington DC-based advocacy group First Focus, across the country, an estimated 8 million American children are currently victims of foreclosure.  These include not just children who lived in houses that have already been foreclosed on, but also children whose homes are currently either in the process of foreclosure, or at risk of foreclosure.

According to the report, approximately 2.3 million children live in homes lost to foreclosure over the past 5 years, while 3 million children live in homes that are at risk of foreclosure because of delinquency.  Another 3 million children live in rental homes that have been foreclosed on, or at risk of foreclosure.

Seattle bankruptcy lawyers find that children are often overlooked whenever the government conducts an analysis of the effects of the foreclosure crisis.  You hear a lot about how the foreclosure crisis has affected people of different ethnicities and minority groups.  However, few studies have focused on the effects of foreclosures on children.

First Focus believes that children who suffer through a foreclosure may suffer developmental delays and other issues.  When a house is foreclosed on, it can mean a massive change in the child’s lifestyle, which can have a severe effect on his emotional health.  Additionally, a move during the school year because of a foreclosure can cause a child to fall behind in school.  There are specific drops in reading and math scores during this period of time that can actually be compared to the loss of a full month of school.

The company, Gingrich Group LLC calls itself a healthcare think tank, and operates the Center for Health Transformation.  The think tank has not given any reasons for the bankruptcy filing.  In papers filed in a bankruptcy court in Atlanta, the company has listed debt of up to $10 million and assets of less than $100,000.

The center was founded in 2003, soon after the former speaker left office in 1999.  In May last year, Gingrich started becoming less involved with the center, when he announced his plans to run for President.  Gingrich was the focus of the Center, and his ideas on healthcare reform are what attracted conservative members to the center.  After his involvement began to decline, membership numbers began dropping rapidly.

In May 2011, Gingrich announced that he had sold his share in the Center for Health Transformation and Gingrich Group to the Center for Health Transformation.  He also announced that he had eliminated all legal connections the two groups.

The center currently has up to 99 creditors.  Bankruptcy experts do not believe that the center will be able to pay back its creditors.  Some of those creditors include the St. Regis and Ritz-Carlton Hotels in Atlanta, two landscaping companies and a number of other individuals who have been listed in the bankruptcy documents.

Seattle bankruptcy lawyers don’t believe that the bankruptcy will have any impact on Newt Gingrich’s campaign for president.

The announcement has been made to coincide with the April college admission season. This April, close to than 1.5 million students are expected to begin the admissions process.  The tool has been launched by the Consumer Financial Protection Bureau, and is called the Financial Aid Comparison Shopper.  At this point, the tool is still in the beta stage.  This is an online tool that has been designed to help students as well as their families compare different loan schemes, and decide on one that is best suited to their needs.

Currently, this is just a prototype, and the Consumer Financial Protection Bureau does not believe that using the tool will actually help students prevent debt.  However, students who use this beta version may be more likely to make the right choices to help them avoid debt.

In its final version, the agency wants the software to be a tool that helps students and parents make informed and educated decisions about the loans that can impact the rest of their lives.  It’s not just students who need to use these tools, but also parents, who are increasingly becoming saddled with loans that they co-sign with their children.  In its final form, the tool will help students determine monthly payments, eligibility criteria, and provide students a calculation of the kind of debt that they will graduate with.

The ground beef industry says that pink slime is nothing but lean, finely textured beef trimmings that are perfectly safe to use.  However, a news report in March this year alleged that 70% of the ground beef sold in the U.S. contain the product.  Since then, grocery stores and supermarkets around the country have announced that they will no longer offer the additive.  School districts around the country have also been considering whether to offer lunches that contain the filler.

The main objection to pink slime is that it is treated with ammonia in order to remove any traces of bacterial contamination.  Concerns over the products are also linked to the fact that it is often sourced from certain portions of the cow, like near the hide, an area often contaminated with fecal matter. The additive is banned in Canada, which does not permit ground beef treated with ammonia to be sold in, or imported into, the country.

Seattle bankruptcy lawyers have not found it surprising that the controversy has meant disaster for the ground beef processing industry.  Many meat processing plants including Cargill Foods, one of the biggest players in the market, have cut down on production. One such company has now announced its plans to file for bankruptcy.

Pennsylvania-based ASA Foods Inc., which has been a staunch defender of the industry’s use of the filler, has announced that the controversy over pink slime has affected its operations, and hence it is filing for bankruptcy.  Proceedings have already begun in the U.S. Bankruptcy Court in Delaware, although lawyers for the company were careful to avoid any mention of pink slime whatsoever.

According to the National Law Journal, as many as 27 bankruptcy judgeships could expire soon, unless lawmakers agree to finance a program that extends these judgeships.  However, extending the program would come with a $16 million price tag, and not many lawmakers are convinced that it is a necessary expense.

If the program is allowed to lapse due to lack of funding, and the 27 bankruptcy judgeships disappear, then the remaining judges will be left to handle a massive caseload.  The remaining judges will be expected to take on the workload of the judges who will be eliminated when the program ends.   Many bankruptcy courts are already trying to deal with the huge caseload by bringing in visiting judges.  Other bankruptcy judges are being asked to put in extra hours, and many judges who are in line for retirement are reconsidering their decisions.

The temporary judgeships program was created by Congress, and created a total of 28 temporary judgeships.  Under the terms of the program, if a judgeship is vacated during the five-year period, then the vacancy can be filled by the court.  However, once the period is up, seats will remain unfilled.  Extending the program will have a heavy financial cost, that lawmakers are not convinced is necessary.

Bankruptcy filers would definitely be impacted by any shortage of judges.  During a bankruptcy filing, it’s important for filers to have quick access to courts and judges to gain access to finances in order to continue operations. A delayed process could increase hardship for these companies.

According to the analysis, borrowers with a loan of about $1 million were in default for an average of about 792 days in 2011 before their homes were repossessed.  In comparison, borrowers with mortgages less than $200,000 in value had their homes repossessed at least 6 months before.  Some of the biggest disparities were seen in Missouri, Indiana, Kentucky, Michigan and Utah.

http://bottomline.msnbc.msn.com/_news/2012/02/28/10529251-foreclosures-take-longer-for-the-rich-report-says

These are findings that should be disconcerting to any Seattle personal bankruptcy lawyer, but aren’t really surprising.  For one thing, it’s not so shocking that banks choose to get rid of low-value mortgages, and hold on to high-value property loans.  That’s because banks tend to think of wealthier property owners as essential to the community and vital to the regeneration of the local economy.  In short, rich people are good business for banks, and this is what bankers keep in mind when they make decisions on foreclosure filings.  Additionally, banks find it more financially profitable to bundle up a bunch of low-value mortgages, and resell them.

There are also practical reasons why owners of larger mortgages retain their homes for longer than owners of low-priced properties.  Expensive homes are difficult to maintain, and even more difficult to sell.  Moreover, a wealthy Seattle mortgage owner can afford to hire an experienced Seattle foreclosure lawyer in order to delay the foreclosure process, and explore other legal options.

http://articles.cnn.com/2009-06-05/health/bankruptcy.medical.bills_1_medical-bills-bankruptcies-health-insurance?_s=PM:HEALTH

Brown and her husband filed for bankruptcy recently, citing $50,000 in consumer debt, which also includes more than $4,000 in medical bills.  That includes about $2,750 that the couple owes to a hospital and a physician’s group, and $1,735 that they owe to out-of-state specialists, including an eye doctor in Alabama, and a specialist in Mississippi.

By no means is Brown’s case unique.  Medical debt is one of the biggest factors in bankruptcy filings in the Seattle area, and around the United States every year.  Americans without health insurance rack up approximately $60 billion in medical bills annually.

http://opinion.latimes.com/opinionla/2012/03/healthcare-reform-law-plaintiff-files-for-bankrupcty-is-it-karma.html

According to a study conducted in 2009, approximately 60% of all bankruptcies in the United States are linked to medical debt.  The report by researchers at Harvard Medical School found that over a six-year period, there was a 50% increase in bankruptcies linked to unpaid medical bills.  The rate was about 46% in 2001, and by 2007, the rate had spiked to 62%.  Most of the people who filed for bankruptcy because of medical debt belonged to the middle class, and were well-educated. In fact, approximately 75% of the people who filed for bankruptcy in 2007 due to medical debt did have health insurance.

Seattle bankruptcy lawyers find that health insurance does not guarantee protection against a medical debt-related bankruptcy.  Your health plan may not cover your illness.  Even insured people can begin to feel the strain of a lengthy illness.  Long-term illnesses can force families to sell off homes, take out high-interest loans, and wipe out savings accounts, all factors that can increase their risk of bankruptcy.

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It’s a new trend that Seattle bankruptcy lawyers and bankruptcy experts around the country are coming to terms with.  Many of these luxury properties were snapped up during the housing boom of the mid-2000s, when finance was so easy to come by.  Since then, many of these homeowners have felt the pinch of dropping property prices just like homeowners in more modest neighborhoods across the country.

http://money.cnn.com/2012/02/23/real_estate/million_dollar_foreclosures/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+(Top+Stories)

The dropping property prices have not left wealthy homeowners and luxury neighborhoods untouched.  In fact, according to data by RealtyTrac, in 2011, there were over 36,000 homes that were valued at $1 million or more, that were put through the foreclosure process.  That may be less than 2% of all foreclosures across the country, but it represents a much larger share of foreclosure activity than in the years since the housing bubble burst.

One of the big differences between foreclosures involving wealthy homeowners, and owners of more modest properties, is that rich homeowners can afford to continue making their loan payments, but elect not to do so, because of strategic economic reasons.  Owners of these high-end properties have paid an exorbitant amount for these properties, and have watched the prices of these properties drop sharply.  In some cases, the homes are now worth just half of their original value.

To many of these people, it makes little sense to continue making mortgage payments on a property that may take years to return to its original value, if it ever does.  For these owners, it simply makes sound financial sense to walk away from their properties.

In fact, it’s easy enough to make the case for a bankruptcy filing, when you’re struggling with unpaid and mounting bills.    For one thing, filing for bankruptcy clears your bills almost immediately.  A bankruptcy filing can get creditors off your back, and eliminate most of your credit card debt, medical bills and other kinds of debt.  In fact, a bankruptcy filing enables an immediate stop to all kinds of actions by creditors, including foreclosures and repossessions.

Additionally, with the help of a Seattle bankruptcy lawyer, you may be able to outline a solid financial restructuring plan that allows you to retain essentials, like your home and car.  That means that you will not be homeless while your finances are being reorganized.

There’s also something to be said for wiping the slate clean with a chance to start afresh.  Filing for bankruptcy means that you’re finally ready to start putting your financial messes behind you, and begin all over again.  You can also get started on the process of building up your credit score again.  This process may take some time, but you will be on the track to a financial recovery.

Finally, filing for bankruptcy does not have to mean a disaster for your social and personal relationships.  In fact, the anxiety of unpaid bills and creditor hassles can disrupt your relationship with your spouse, and affect your emotion al health.  Filing for bankruptcy sends out a clear signal that you’re doing something positive to rearrange your life again.

How does a Hollywood star earning millions of dollars every year find himself in a bankruptcy court?  Seattle bankruptcy attorneys blame most celebrity bankruptcies on bad advice.  True, celebrities can afford to pay for high-quality financial advice, and they do have managers, experts and consultants working to manage their finances.  However many celebrities may not bother to have any control over what’s happening with their money, with devastating results.

Also, actors and musicians are creative people who typically don’t want to have much to do with taxes, business issues and other financial matters.  The people in charge of these matters may not always do a good job, because the celeb isn’t really interested in knowing where each dollar goes. That’s why you so frequently find wealthy celebrities owing millions of dollars to the Internal Revenue Service.

Just because you’re earning millions and have your picture on the cover of People doesn’t automatically make you business-savvy.  Celebrities are just as likely as the average Joe to make bad decisions financially, as evidenced by the number of Hollywood stars who lost millions in Bernard Madoff’s Ponzi fraud scheme.

Another mistake that celebs often make is to hire friends, and relatives as their business managers and financial advisors.  These people may not have the kind of experience and objectivity that is needed to manage millions, and this makes for a perfect recipe for  financial ruin.  Additionally, there are other reasons that are typically responsible for putting a celebrity on the road to bankruptcy including drug and alcohol use, and good, old fashioned overspending.