Bankruptcy clients flying into my office - Never been this busy in 20 yrs.

[MikeG]

The economy will only be getting worse folks.

Just a report from the front lines.

[Stephanie]

1. Do you need a secretary?

Just checking.

[MikeG]

7. I've had the same one for 16 years.

My office is pretty automated.

We file online. Not much paper.

But thank you for asking.

[NewYorkerfromMass]

2. $46 oil will only hasten the problems.

I wonder what Bush is going to do in the battleground states of Iowa, Michigan, Wisconsin, and Minnesota that will need early deliveries of home heating oil?

[ComerPerro]

8. Well, the good news is

That prices should level off by October. That way Bush can have low gas prices as proof of what a genius he is.

[alfredo]

15. Iraq has cut off the oil

in its main pipeline. Let's see if that will cause the price to go up. I have a lot of friends living in rural areas. I know they will be hurting this year.

[NMDemDist2]

3. I need a BK lawyer

just to be proactive and see what my options are

things are getting a bit hinkey around here too...

[mike_c]

4. I started a thread about this yesterday....

middle-aged, middle class swell bankruptcy court dockets....

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=10641&mesg_id=10641

[ComerPerro]

5. Reminds me of The Simpsons

"The bubble burst."

"Tough times, huh?"

"Yeah, but this is a golden era for the repo man. An era of wealth that will never end"

[stellanoir]

6. the "Bushworld" recovery

WooHoo!!!

[Robbien]

9. And our ratfink representatives in Congress have been trying

to make it harder for people to declare bankruptcy. They knew this middleclass squeeze was coming and have been trying to make it harder for people to have any relief at all.

Who says there is not a class war going on.

[2Design]

27. credit card companies are financing them

they have to get reelected to have a job and benefits themselves. So they will do anything for corporations and not for people.....

[shrike]

10. Sad news

Thanks for the report.

[napi21]

11. I'm not surprised! I predicted this would happen and get worse.

Banks are pushing credit cards to everyone, and as many as you want.

Mortgages aregranted to almost everyone, and with interest rates so low, people are buying a lot more house than they can afford.

Zero interest on car loans let people buy a much more expensive car than they can afford.

The President keeps telling, don't worry, just go shopping!

Far too many people are living on the edge, and if anything causes a mojor change, like gasoline prices, or food costs, or price of utilities, they'll fall off that edge. Couple all this with companies cutting jobs, shutting down facilities, or just closing the doors, and the bankruptcy attorneys are going to have booming business for a long time.

[Cleita]

12. Why don't you write about this to some high profile columnists

like Molly Ivins? She might write an article about it. This would be a good indicator that the economy is not recovering in spite of how much the Boosh administration cooks the books.

[Stephanie]

13. There should be a way to check the stats on filings

I don't know if there's any comprehensive databank on this.

Are we talking personal bankruptcies, small business, or large?

[Cleita]

14. Wouldn't the County Clerk have records on this?

I really don't know but some government agency where the filings take place should have something. A large city like LA or NYC would give a large sampling to make comparisons.

[MikeG]

19. Here's the link

http://www.uscourts.gov/bnkrpctystats/bankruptcystats.htm

[Cleita]

22. Thanks.

I hope Stephanie sees this.

[MikeG]

17. Administrative Office of US Courts.

I can tell just by the case numbers given out. We used to crack the 10,000 barrier in our district in November. We hit it in July this year.

[mike_c]

24. this has just been written about in the NYT, WSJ, etc.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=10641&mesg_id=10641

[Media_Lies_Daily]

16. I just talked to a lawyer last week about Chapter 13 and Chapter 7....

...just checking into what now appears to be limited personal options.

[Somawas]

18. My practice has been small business oriented for years

and I'm thinking about doing more bankruptcy. Small businesses are showing up as ventures due to continuing unemployment. People taking equity out of a house to finance them. Won't last long, I'm afraid.

[notadmblnd]

28. I know an attorney and thats all he does,,

It's like an assembly line in his office,very efficient. Clients come in and retain him and his staff for $100.00, at this point all the client has to do is tell their creditors to contact their attorney. They are given their consultation and a homework package (paperwork and a listing of assets, liabilities and income) to fill out. When the client completes their homework and is ready to file, they bring in their homework along with the filing fee and go over it with them. It is then filed with the court and when the date is scheduled an associate accompanies the client to court. He allows the client to pay the remaining fee of 900.00 on a monthly basis.

The guy is making money hand over fist and I've never been to his office without seeing a room full of people.

[misty3k]

20. I have to file bankruptcy...

but the ironic thing: I don't have the MONEY to pay the fees to file!

I made more money when Clinton was President. People do better economically under Democratic Presidents. I believe this 100%.

[TNDemo]

21. If things are getting worse,

why are there no houses to buy in my area? I have never seen this low of an inventory of homes. I have been looking daily for a year and if there is anything worthwhile it is snatched before it hits the market and for unbelievable prices. I am not disputing that things are bad, I am just trying to figure out why it has not resulted in people selling their house.

[misty3k]

25. well....

maybe people can't afford to buy a new house? Or if (like me) they need to file for bankruptcy, their credit is all gone to hell, and they couldn't buy a house even if they wanted to?

[AP]

48. Three reasons, I think: since a home can be protected from bankruptcy

so long as you don't have a mortgage on it, a lot of people are dumping all their assets into buying a home so that it can't be taken from them.

Also, the government is still underwriting the riskiest mortgages, so people who would otherwised be pushed out of the marketplace are still in it.

Finally, and most importantly, there are a lot of forces trying to convince people the end of low interest rates is near, thus encouraging people to buy houses now despite finances that don't warrant buying.

[yella_dawg]

29. Homes in many areas

are being snapped up for rental property or for speculation by investor groups, some foreign. Just because house prices are still rising and availability is limited, it doesn't mean the economy is rosy. It's the next wave of slum lords loading up. Welcome to the new middle class.

[Lydia Leftcoast]

38. Real estate speculation is another possibility

Groups of speculators selling property back and forth to one another.

I live in a relatively affluent area* full of houses that start at $300,000, and some of them have been on the market all summer.

*I'm one of the non-affluent residents, a renter.

[yella_dawg]

43. Some years back

here in Texas, raising race horses got to be a huge thing. Horse ranches going up everywhere. Since horses can't be raised around the barbed-wire fences used for cattle, the fence builders were getting rich. The problem was, nobody noticed that the only people buying race horses were new horse ranchers. One day the bubble popped. I still know where there are miles of expensive pipe fencing left unfinished, unpainted, and rusting away. Cross your fingers this will happen in the housing market, and the only ones burned will be the speculators.

[mountainvue]

32. You in Vegas? n/t

[TNDemo]

44. Me?

No - I'm in Nashville. And we are middle-aged and this will be our third house so it's a move up. I might add it is hard to find a house in our zip code instead of just the city. It's not a particularly affluent zip code (rich folks live closer to town) but we are trying to stay here so there won't be a school transfer involved. It's not a big problem - we can stay here (been here 17 years) but we're kinda cramped. We have had the big problems in the past - sick kids, debts up to our eyeballs, struggling not to lose the house - but thankfully it's not management by crisis now.

[Wcross]

46. Look up in Forrest hills-Ha!

I drove around Forrest hills and the brentwood area last week, all I can say is there are some very wealthy people in the Nashville area! I felt a little more than let down when I got back home to my little hovel out in Wartrace(54,000 two years ago-on 15 acres).
A co-worker was telling us his brother is buying a place in that new planned town near Franklin, paid 600,000 for the house!
I don't understand the need for these huge houses but to each his own. I can sleep well at night knowing if I lose my job I will not lose my home.

[TNDemo]

47. I am always just amazed at how that many people

can have that much money. There are tens of thousands of homes in Forest Hills, Brentwood, Green Hills that start around a million dollars. Needless to say, when we look in area 2 in the real estate ads we have to go way, way down to the little area at the bottom that is our price range. I just want about 500 more feet and a good size garage (only have a carport, which is not much help when hubby wants to play with his cars).

[Wcross]

50. Have you considered an addition?

I am planning on doing that. I only have a 700sqft place right now and will be adding about 1000sqft within a year or two. I am going to do the work myself and with any kind of luck the property tax people won't notice! (I live out in the sticks- can't see the house from the road)

[TNDemo]

52. If I had the lot size I would.

Right now a double garage would pretty much eat up the back yard, not to mention price me out of the neighborhood. We are already in the top 5% of the subdivision in size and price and I need more indoor space and a bigger kitchen. We have debated this endlessly for several years and finally decided we would be best served to move.

The real irritation for us is that about 3-4 years ago we bought a five acre tract of land not far from here. We were pulling together house plans and decided to wait until we saw what we were going to have to pay for our son's college before we got started. Once that was settled and we were ready to go metro changed all the rules and now if a road services more than 10 houses then it has to be of subdivision quality - certain width, curbs, etc. This was mainly designed for developers but we are all individual homeowners. It would cost about $100,000 to get the road up to their standards to where we could get a building permit. My husband and other owners have been before the planning commission, at codes, talked to lawyers, developers, contractors, etc. and basically for now we are screwed. We own an expensive camp site basically because we can't build and who would want to buy it.

[Wcross]

54. You could store junked cars on the lot....

Maybe metro would see the light and allow you to build?

[sandnsea]

40. Defense contractor?

Do you live in an area with a military base or defense contractor? There are pockets in this country that are doing well because of that. Could be you live in one. Or, you live in an area that's attracting retirees. Boomers selling their city homes and moving to rural areas. Can't find a house in my town either and I swear the prices are going up $10,000 a month.

[Zynx]

41. Home sales are economically inverse to a large extent.

Unless things are REALLY bad, a soft economy results in lower interest rates that prompts additional home purchases. The reason why some previous recessions saw falls in home sales is that they were accompanied by high inflation and high interest rates.

[stavka]

23. Other than a medical loss.....who cares?

Glad your business is getting work, but personal BR's don't really provide that much economic insite

[shrike]

45. Huh?

Be nice if you explained that statement.

[Mari333]

26. Its going to get worse I am afraid

Winter here in Michigan will be monstrous..I warned a friend of mine, who is a counselor, to prepare herself for a shitload of clients..right now she has so many clients who are suffering from depression its unbelieveable..she points her finger straight at the WH..
My son is chopping wood so we can afford to get by this winter...thats where its at...plastic on the windows, wood in the fireplace, no turning on the gas unless it is absolutely necessary...there are people here in the rural areas who, I doubt, will make it..they wont be able to pay their heating costs..and it will be a choice between food and heat and medicine..Im lucky I have a fireplace. Its going to be a nightmare and its going to take Kerry YEARS to make it better..if we hold his feet to the fire...because wealthy people who OWN this country could care LESS about the middle class, and the poor...you are all Wal Mart workers to them..and they dont care if you lose your house, or anything else...
a lot of people will die from freezing to death thanks to Bush...alot of people have died already..the Bush junta does NOT CARE

[benburch]

30. What part of the country are you from, Mike?

Things are bad here in Chicagoland by all accounts.

[MikeG]

33. Pittsburgh, PA

[mountainvue]

31. Well, I'm glad you're busy

but I'm heartbroken for those you serve.

[MikeG]

42. Business was lousy during Clinton, but I enjoyed life more.

[WLKjr]

34. I heard that people are defaulting on homes that they just built

is that true or half true? Becuase that would shoot holes all over what bush calls home ownership supposidly being high.

[goforit]

35. Prayers to all who suffer.

[ramapo]

36. Living on the edge

People have no safety net. It takes two (at least) full-time workers for the average family to just get by. There's no room for emergencies, layoffs, extra bills, etc.

Most people have credit card debt up the wazoo, car payments as big as mortgages of not long ago, and hugh mortgages.

So if anything goes wrong, or if you're a single parent, the debt just becomes all consuming.

[CitizenWill]

37. Best thing I ever did was file bankruptcy

I finished up about a year ago IT WAS THE BEST THING I EVER DID!. And life does go on. I had a great cushy job and was making tons of money and built up my debt accordingly. Then I lost the job and the whole house of cards came tumbling down.

I couldn't believe the amount of credit card, car loans, and home loan offers I got after my chapter 7 (I of course tore them all up). I have a better credit score 1 year after my bankruptcy than I did in the last few years before it (strange how that works).

They are really anxious to get you back on the hook once your debt is cleared.

Don't fall for the lie that you need all that credit. They make it sound like you have a terminal illness if you have a bad mark on your credit report. You think Fox News is propaganda listen real hard to all the rubbish that is thrown at us at how you have to get a AAA credit score. And dig yourself a huge hole trying to get it.

My parents and grandparents never had credit cards and huge debts looming over them and they made out just fine.

My personal opinions only.

Thanks for listening.

[PassingFair]

39. Thank you for your candor here, Dante

We have developed the bankruptcy system here so that debtor's prisons would become a thing of the past - and they have. Let's hope it stays that way...

[AP]

49. I wonder how many Americans refinanced mortgages that were close to...

...beign paid off and now might lose their homes because they default on the mortgages.

[treepig]

51. is your office on a cloud?

(just wondered why they had to fly)

a few days ago i was at a mattress store, and told the obnoxious salesperson i'd be back later.

he said, better not wait, these things are literally flying out of here.

i suggested putting something heavy on them, but never went back to see if this sensible suggestion was followed or not.

[MikeG]

53. Only when I take the drugs.

[Bat Boy]

55. Are you in Chicago?

Do you have a DU discount?

Starting to look that direction myself.

Thanks for posting this. Considering bankruptcy comes with a lot of shame and self loathing. It helps to know that, if you'll forgive the analogy, it's a bit like herpes. More people have it than you know.

[MikeG]

56. I'm near Pittsburgh, PA.

[Bat Boy]

57. Ah...well that would be a bit of a commute...