New issue took a breather at the beginning of the month as nearly 6,000 ABS market participants made their way to Las Vegas for the industry’s largest conference of the year, Structured Finance Industry Group’s (SFIG) ABS Vegas. One major new-issue theme discussed during the conference was the merits of new REG AB II regulation which goes into effect in November 2015. REG AB II excludes private 144A deals; increases loan level disclosure for certain sectors, and requires the prospectus to be filed before the sale of the securities. Despite the conference, nearly $19.2bn in new issue was brought to the market in February bringing the year to date volume to $38.3bn. Auto loan ABS makes up the largest slice comprising 51%, followed by 7% in credit cards, 7% in student loans, and 20% in specialized ABS.
Bank of America, branded the Bank of Opportunity”, offers an array of credit cards with diverse features, such as cashback, rewards, balance transfer, student, small business, and more. Bank of America even offers charity-related credit cards that allow consumers to earn points towards specific causes, such as breast cancer research. Another noteworthy feature is Bank of America’s Credit Card Clarity Commitment, an easy-to-read one-page summary of a credit card’s important terms and conditions intended to make credit less confusing to consumers. Bank of America operates online, in nationwide branches, and is accessible via mobile banking.
Bank of America, like many of its competitors, derive a large percentage of their income from net interest margin and are hurt by increasing interest rates. As interest rates rise, banks are forced to pay higher rates on deposits and other interest bearing accounts. Meanwhile consumer demand for mortgages and other loan products diminishes as borrowing becomes more expensive. The combination of these two effects reduces both the volume of loans and the profitability of each loan. Rising interest rates also have the potential to increase a bank’s defaults as holders of adjustable rate mortgages find themselves unable to meet their obligations. This is especially true of subprime borrowers.
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people’s opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
bankruptcy – A legal proceeding involving a person or business that’s unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of creditors (less common). All of the debtor’s assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred before filing for bankruptcy.
Bankruptcy filings in the United States can fall under one of several chapters of the Bankruptcy Code, such as Chapter 7 (which involves liquidation of assets), Chapter 11 (company or individual reorganizations) and Chapter 13 (debt repayment with lowered debt covenants or payment plans). Bankruptcy filing specifications vary widely among different countries, leading to higher and lower filing rates depending on how easily a person or company can complete the process.
Bankruptcy is a process that should only be entered into as a last resort. Luckily for those thinking about it in Alberta, the province is more generous than many others about assets a bankrupt individual can keep. Once the process is done, rebuilding credit is no picnic. Getting a loan at anything but the highest interest rates is next to impossible for at least the next 3 years. If someone is serious about rebuilding their financial life after bankruptcy, then debt should probably be avoided at all costs.
Bankruptcy is a very useful tool for credit card and medical debts. It can wipe out your unsecured debts so you have enough cash to keep up with your secured debts. However, not every unsecured debt can be discharged in bankruptcy. First, priority” debts must be paid in full. The most common priority debts are child and spousal support. Second, you can’t discharge a debt for personal injury or damage to property that you incurred while driving drunk. Third, you generally can’t discharge student loan debt Fourth, you can’t discharge attorney fees, court fees, or fines owed to the government. Fifth, you can’t discharge any taxes except income taxes, and you can only discharge income taxes under very strict conditions Finally, you can’t discharge any debt that you failed to list on your bankruptcy schedules when you filed.
Bankruptcy is intended to give the debtor a fresh start and is not meant to provide a means for debtors to deceive creditors by discharging debts they had no intention of repaying. As such, bankruptcy laws provide that any debt that was acquired within 60-90 days prior to filing for bankruptcy is not dischargeable. There is an underlying assumption that any loan acquired in the period immediately before the debtor filed for bankruptcy was taken out in anticipation of bankruptcy and that the debtor had no intention of repaying the loan.
Bankruptcy is the quickest way out of debt. Bankruptcy is a very complex route and it should not be seen as a quick and easy way out of debt. To file for bankruptcy you must complete paperwork, attend a court hearing and meet with an Official Receiver who will go through your finances and assess your assets. In bankruptcy you may be ordered to pay any surplus income as an Income Payments Order (IPO) to your creditors. You may have to pay this for up to three years.
Bankruptcy personal loans can help a borrower avoid bankruptcy and the funds can be used to directly pay down any type of credit balance owed. This loan acts as a line of credit and can use collateral such as home equity to secure the loan. This type of lending may be an alternative way to avoid the stigma associated with filing for Chapter 13 and the 10 years of low credit report scores afterwards. Since going bankrupt is becoming more and more popular, bankruptcy personal loans have been granted in higher amounts with lower interest rates to people who otherwise would have to file for bankruptcy in order to live a regular life.
Banks and building societies are often willing to help and may offer to freeze the loan temporarily or lengthen the repayment period. It is in their best interest to acquire their money and they will often look to reschedule rather than take action. It is important for lenders to Treat Customers Fairly” when providing a loan to them. This means that they will do everything they can to help a customer in need, and especially those who have fallen in to financial hardship due to an unexpected life event like losing a job or a relationship break up.
Banks and credit unions will usually only allow you to borrow up to 40% of your gross annual income for a debt consolidation loan in Canada This means that if you ask a bank for a loan, on paper they will add your proposed loan to your existing debt payments (these are your payments on your existing loans, credit cards, line of credit or mortgage) to see if together they exceed 40% of your income (they call this measurement your Total Debt Service Ratio or TDSR). If the new loan puts you over 40%, then you will have to consider applying for smaller loan or no loan at all.
Banks and lenders will conduct a credit check on anyone applying to borrow money, whether it be a credit card, personal loan or mortgage. The credit check will give them information on your payment history, including whether you have missed payments in the past, have County Court Judgements against you, or whether you have a history of being a reliable borrower. The check will also inform them of the total amount of outstanding debt you have with them or any other lender.