According to a recent press release by the American Bankruptcy Institute, personal bankruptcy filings for 2009, have surged to levels not seen since 2005 — when the bankrutpcy law was changed.
This should come as no surprise to Fresno bankruptcy attorneys, many who tell me that they have potential bankruptcy clients scheduled two to three weeks in advance.
You can read the ABI article here.
Our law office provides native speakers of Spanish and Punjabi langagues for our bankruptcy clients
Here is an excellent video explaining how credit markets work (a fancy way of say mortgage market — where mortgage money comes from). The credit crunch, as is explained in the videos, is easier to understand when you trace the money from its source (investors) to its destination (home buyers/mortgate holders).
As credit (mortgages) became easier and easier to get (fewer documentation requirements, low or no down payments, etc) the more money flooded the market driving up housing prices, and in many case over inflating the value of many homes (easy money = lots and lots of buyers = price inflation).
When the credit bubble burst, the money that was driving up housing prices dried up and housing prices began to fall, and in places like Fresno and the Central Valley they often fell dramatically.
Right now we are experiencing the aftershocks of these easy credit lending practices. The most notable effect is the a large percentage of homes that are now “upside down” (more money is owed than the home is worth) with homeowners struggling to make payments or deciding whether to “walk away.”
