Latest Happenings in Cedar Rapids that Relate to Bankruptcy
Cedar Rapids Gazette No Longer Publishing Names of Bankruptcy Filers
shared by most bankruptcy filers is that their bankruptcy filing may be published in a local newspaper. The Cedar Rapids Gazette had published this information in the past, but is no longer doing so. One less concern for Cedar Rapids area residents!
The unemployment rate in Iowa was down slightly in October
2014, according to the Cedar Rapids Gazette. That's good news, but credit is still hard to get and many consumers are still carrying debt from the Great Recession. That
old debt is leading to garnishments and other collection activity. Consumers often only consider bankruptcy to clear their
old debt when their incomes are rising and credit is available, but they should consider it a few years ahead of applying
for credit to give their credit rating time to recover. Sometimes, consumers lose as much or more money to wage and bank account
garnishments than they would pay for a bankruptcy filing.
Debt" a Problem
A problem affecting people nationwide -- and therefore in Cedar Rapids -- is
highlighted in a recent New York Times article. Consumers file bankruptcy to seek forgiveness of debt, and creditors are supposed to make appropriate notations on the consumers'
credit reports showing the debt was forgiven. Some big banks apparently are viewing those credit reporting rules as voluntary
guidelines only, and are essentially blackmailing consumers to pay discharged debts by showing those debts as still owing
on credit reports. The Department of Justice's Office of the United States Trustee is investigating, and bankruptcy judges
"Zombie Debt" means debt that will not remain dead. It has been a problem outside of bankruptcy,
such as when creditors and debt buyers try to collect debts that were paid or which are too old to pursue, but it hasn't been
a problem for debts discharged in bankruptcy until recently. It is hard to imagine this situation will be allowed to stand.