 | 
|
THE CONSUMER BANKRUPTCY LETTER |
|
|
In This Issue:
|
January 17 2005
|
|
|
|
•
|
TAX DISCHARGE PROGRAM IN JANUARY!
|
|
|
|
•
|
From BankruptcyBooks.com
|
|
|
|
|
•
|
FEATURED SITE #4: HOME VALUE SEARCH
|
|
|
|
•
|
HEADS-UP ON RECENT CASES
|
|
|
|
|
•
|
CREDIT CARD FEES JUMP IN 2004
|
|
|
|
|
|
FIND THE FMV OF YOUR CLIENT'S HOME IN SECONDS
In this era of increasing risk to homestead exemptions due to rapid rises in home values, the debtor's attorney must be especially careful in determining the actual fair market value of the debtor's residence. Nothing can substitute for a written professional appraisal. However, the attorney can obtain a valuable rough estimate of the FMV of the debtor's home in about 60 seconds on his computer, with Bank of America's online Home Value Search. This service will provide an almost instant market value for stand-alone homes and condominiums, as well.
You simply enter the address and press a button. In about 5 seconds you receive a report which gives the low and high range for the current fair market value, plus additional information such as square footage, total number of rooms, the year the house was built, the number of bedrooms, whether or not it has a pool, and etc.
It also provides actual comparable recent sales within a 1/2 mile range of the house.
The value estimates provided are not infallible, and may tend to err on the high side. They may also not take into consideration recent additions that may raise the value, or needed major repair work such as new roof or dry rot that may bring the value down.
But despite its lack of 100% dependability, it helps provide the attorney an instant approximation of the house value, which may help guide the consultation with the client about the possible risk of losing the house in a chapter 7 bankruptcy.
There is no charge for the service.
|
|
 |
|
|
CREDIT CARD FEES SKYROCKET
Americans shelled out more than $24 billion in credit card fees last year, an 18% jump over the previous year. The figure does not include balance transfer fees, foreign exchange fees, fees for ancillary services, or miscellaneous fees for account research which could easily push the number above $30 billion. During 2004, consumers were charged $14.8 billion in penalty fees, specifically late payment fees and over-limit fees. Annual fees edged up from $3.4 billion to $3.5 billion. Cash advance fees increased 9% from $5.6 billion to $6.1 billion. According to R.K. Hammer Investment Bankers, U.S. credit card issuers produced an estimated $50.8 billion in fee income last year, with half the fees coming from merchants.
SOURCE: CardWeb.com
______________________
BANKRUPTCY FILINGS DIP IN 2004
The bankruptcy filing rate, which declined last year for the first time since 2000, will likely remain flat or continue to decline during the last quarter of 2004, but may turn up again in the first quarter of 2005, based on trends in consumer debt levels, credit card default rates, according to data analyzed by the American Bankruptcy Institute (ABI). Three variables published by the Federal Reserve: the financial obligations ratio, the credit card default rate, and the credit card charge-off rate, appear to correlate with, and lead, the consumer bankruptcy filing rate. While all three variables suggest that the downward trend is likely to continue when data is reported for the fourth quarter of 2004, an increase in the financial obligations ratio in the third quarter suggests that filings may begin to increase again in early 2005.
SOURCE: ABIworld.com News Room
|
|
 |
|
 |
|
PUBLISHED BY KING BANKRUPTCY MEDIA FOR BANKRUPTCY PROFESSIONALS 7080 Donlon Way Suite 222 Dublin California 94568 (925) 829-6460. Morgan D. King, Editor.
© King Bankruptcy Media 2004 CONTACT US AT editor@bankruptcymedia.com
|
|
|
|
|
|
