Utah, the Nation’s Bankruptcy CapitalWritten by Charles Essmeier
Congress recently passed Bankruptcy Abuse Prevention and Consumer Protection Act, designed to minimize frivolous bankruptcy filings and to require debtors to repay some of their debt. Once it takes effect in October, 2005, law will make it harder for those with problem debt to have their debt wiped away by courts. Most will have to agree to a five-year repayment plan. In passing this new law, members of Congress suggested that our bankruptcy courts are filled with cases involving not ordinary citizens, but with reckless gamblers, shoppers, and drug abusers. Is that really case?
One would think, given accusations, that highest bankruptcy rate in Untied States would be in place where such vices were common, such as California, New York or even Nevada. If problem gambling is thought to be cause of so much bankruptcy, then one might assume that Las Vegas would be bankruptcy capital of world. How odd it is, then, to discover that Utah, one of only two states that prohibits gambling completely, has highest per capita incidence of bankruptcy filings in United States. Utah? How can that be?
Utah has a number of aspects that, taken on their own, don’t suggest that bankruptcy would be a problem. Added together, however, these things create a recipe for disaster:Utah has nation’s highest birthrate. Seventy
| | Online Home Equity Loans: A Basic GlossaryWritten by John Ross
Home equity loans can be a great idea for individuals looking to get out of debt or make necessary repairs on their homes. During process, you will come across a variety of terms and acronyms. We have gathered together some of basic terms that you come across during your home equity loan. If you have any questions about any of these terms, make sure to consult with your mortgage lender.Adjustable Rate Mortgage (ARM): This type of mortgage has an interest rate that will change over time. Typically interest rate will be lower than fixed mortgage products. Amortization: Loan payments that will cover both principle and interest in one payment. Your lender will likely give you an amortization schedule outlining your payment schedule. Annual Percentage Rate (APR): This is cost of credit on a yearly basis. Appraised Value: An appraiser will determine value of your home based on experience, market data, and other information. Cap: This is limit on how much an interest rate can increase over life of your loan. Closing/Closing Costs: This is final step in real estate transaction. This would include delivery of deed, signing of notes, and final disbursement of funds. There will be various fees associated with a closing, such as attorney fees and taxes, that are called closing costs. Depreciation: An overall loss on a property due to age, physical deterioration, and economic factors. Discount Point: A buyer can pay lender a set fee for a lower interest rate. This is usually a percentage of loan itself.
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