bankruptcy

Readers of this blog may recall a story about a large, multi-billion-dollar settlement that the attorneys general of 49 states reached with major banks across the country in regards to improper foreclosure practices. Recently learned, though, is that Bank of America has reached a separate deal as part of the overall foreclosure settlement that could reduce its penalties while providing substantial relief to thousands of homeowners. The deal could very well provide much needed help to homeowners in Connecticut.

A baby stroller company with its headquarters in Norwalk, Connecticut, recently filed for bankruptcy following a product recall of about a million of its strollers. The company, Maclaren, is internationally renowned for its strollers, which are often seen in well-to-do neighborhoods. The company has units in Europe, Hong Kong and North America, but the U.S. unit filed for Chapter 7 bankruptcy late last year.

There are perhaps few things more terrifying than the constant calls of debt collectors and letters filled with dire warnings. Fortunately, more and more Connecticut residents are gaining some control over their financial obligations. In fact, according to Equifax, which is a credit reporting service, consumers in the state have paid down their credit card debt and outstanding financial obligations by a significant amount.

When the housing crisis hit Connecticut in 2008, many homeowners found themselves suddenly unable to meet their financial obligations -- often, through no fault of their own. Indeed, many homeowners who were fighting off foreclosure were the victims of improper practices by mortgage servicers like Citibank or Bank of America. These mortgage servicers were subsequently involved in a robo-signing scandal; that is, they were failing to properly review foreclosure documents, including even failing to verify their authenticity.

Bankruptcy is something most people don't take lightly. It is often used as a last resort to regain financial stability and get a start fresh. In the last fiscal year, approximately 1.4 million people filed for either Chapter 7 or Chapter 13 personal bankruptcy in an effort to stop creditor harassment and move forward from their past debts.

Owning a home used to be an essential element in attaining the ideal American Dream. Now, it seems for many homeowners, their mortgage has made this once wonderful dream the American nightmare. Many people are struggling to make their mortgage payments, but now new relief could be on the way. A proposal currently being considered could help those in Chapter 13 bankruptcy reduce the total amount owed on their debt.

The United States Attorney for the District of Connecticut sentenced a Connecticut man to 18 months in prison late last month. The man was found guilty of orchestrating a $4 million mortgage fraud scheme that eventually resulted in foreclosure on several of his properties. Following his imprisonment, he will be required to undergo three years of supervised release.

Everywhere you look in today's economy, Connecticut families are losing their homes to foreclosure. Unfortunately, some families have no way of avoiding foreclosure, and their only chance for financial redemption is to file for bankruptcy protection. But other families may have options available that can help them keep their homes.

Residents of Southport, Connecticut, were likely shocked when the sign was taken down from the restaurant Friendly's, a fixture on the local restaurant scene. The Southport-area restaurant has closed after nearly 25 years of serving food to the community, according to the Connecticut Post.