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TaxMasters, the tax-resolution firm, sought bankruptcy protection after coming under fire from multiple states’ attorneys general. The company listed debt of more than $1 million and assets of less than $50,000 in Chapter 11 documents filed in the U.S. Bankruptcy Court in Houston. TaxMasters said it has between 1,000 and 5,000 creditors. The company estimates

While saving up to declare bankruptcy sounds odd, that’s exactly what many people have had to do. Ever since the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act was passed. Many families wait for their tax refund to file for bankruptcy. This trend has been increasing as costs related to the filing have gone up.

A top Senate Democrat took aim at the private student-loan industry, calling for new rules that would allow wiping away of educational debts during bankruptcy. Majority Whip Richard J. Durbin (D-Ill.) convened a Senate judiciary subcommittee hearing Tuesday to address what one consumer group has called the nation’s next potential “debt bomb.” Research by the

For years economists and financial advisers have scratched their heads and wondered how so many Americans wound up in bankruptcy. The numbers show that total U.S. bankruptcies are in decline. U.S. bankruptcies dropped by 12% from November 2010 to November 2011. The total number of U.S. consumer bankruptcies should come in lower than 1.4 million.

Consumer debt, which drove almost 1.37 million consumers into bankruptcy during 2011, is on the rise. Yet, consumer bankruptcies slowed down last year from the 1.55 million bankruptcy filings in 2010, a decline of 12 percent. Some experts attribute it to more cautious consumer spending and a decline in credit card debt. Others say that

Bank of America, one of the five banks in the $25 billion settlement with the government over foreclosure practices, has struck a side deal. It will allow it to reduce penalties in return for bigger cuts to borrowers’ mortgage balances. Bank of America will make deeper and broader cuts than other banks; it will allow

Bank of America could be far from clear of securities claims over the robo-signing scandal under a ruling allowing a mortgage-backed securities investor to press allegations over suspect mortgage documents. A U.S. District Judge in Los Angeles refused to dismiss federal and state securities claims; alleging BofA and its Countrywide unit failed to properly assign

The 2nd District Court of Appeal has entered an opinion in favor of a foreclosing bank. The opinion of the Court of Appeal states that the trial court should have allowed the plaintiff to amend the complaint in their foreclosure action; where the Plaintiff sought to amend its foreclosure complaint to add a count to

A controversial bill to speed up foreclosure did not pass as the lawmaker session ended. The proposal would have accelerated foreclosure proceedings on abandoned properties. And, it should make it easier for lenders to complete proceedings when both parties agreed to end the process. For consumers, the foreclosure bill would have reduced the length of

Although the Home Affordable Mortgage Program doesn’t allow for private federal actions against banks over their implementation of the program, a homeowner can bring state law claims, the 7th U.S. Circuit Court of Appeals ruled. The Home Affordable Mortgage Program and its enabling statute do not contain a federal right of action. But, neither do