Over the last generation, private employer-sponsored retirement plans have replaced traditional pension benefits programs. This was fine while the going was good and the economy prospering.  The biggest advantage of the plans was that they were so easy – the contribution was deducted from the salary, so not only did people not miss the deduction, they had to do nothing themselves. The problem is that with things so automatic, people did not ever think about what was going on with the money they placed in these plans. Everyone presumed that it would magically appear upon retirement to take care of their post-career days.

Unfortunately, this is the real world and there is no room for magic. The banking and stock market collapse of the last few months has caused huge erosion in the values of 401(K) plans and other retirement funds. People, even in up market areas like New York’s Nassau and Suffolk counties are suddenly finding themselves bereft of any form of financial security for their post employment life. While younger workers are actively looking at other savings and investment options, those closer to retirement have little time to find a viable alternative that will allow for adequate resources to accumulate by the time they retire.

As a result bankruptcy and foreclosure have become major concerns. These are frightening terms for most people. Rather than bury our heads in the sand, it is better to face up to the facts and find solutions and remedies to the ills that the loss of savings has caused. And the best way to do this is to contact a local bankruptcy lawyer. It is never too early to start protecting yourself from the consequences of the losses you have suffered through no fault of your own. Bankruptcy is not the end. It is merely a stage in our financial life and a good bankruptcy lawyer will be able to help you get over the hurdle with the minimum of difficulty and assist you in finding ways to repair the financial damage inflicted on you.

If loss of your savings or other impacts of the ongoing recession have caused you problems with your mortgage payments, contacting an experience foreclosure lawyer in your area is something you should not delay. Foreclosure is a complex issue and with the government implementing innovative programs to help people who are having mortgage problems. Seeking help from an expert may be able to help you to stop home foreclosure.

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What caused our present financial crisis? Bad mortgages that turned sour, which were followed by a huge wave of foreclosures.

If you are one of those who have been badly affected by what has happened to our economy, it’s time to take inventory of your financial position. How safe are you and how strong are your long term resources? No one can say with any certainty when things will begin to improve and even when they do, how long it will take for us to get back to the levels of prosperity of years past. Maybe we should not reach those levels – at least not in the same form. Perhaps what we had was built on quicksand. It would be a mistake to repeat the same process all over again. And this does not apply only to banks and Wall Street. It applies to individuals too. It’s time to look at long-term security, no matter what the short term problems may be.

Suffolk County and other prosperous regions in and around New York are seeing a rise in the number of people who are contacting them. These people may not be in any immediate danger of either foreclosure or bankruptcy, but they are engaging in long term planning and are factoring in these possibilities, so that they are prepared for any eventualities.

Being realistic about the problem of foreclosures makes sense. Despite the government’s well-intentioned promises to find ways of protecting the homeowner, the realities are that nothing much is happening or can be expected to in the immediate future. For example –the Bush Administration’s Hope for Homeowners program promised last year to shield 400,000 families from foreclosure. The actual results as of last February were a mere 25.

Understanding bankruptcy and foreclosure process is critical to long term planning. Bankruptcy is not the end of the road – there’s quite a bit of protection for retirement and some other forms of savings. Getting the right advice well in advance and modifying financial plans to take into account various scenarios is the key to long-term financial security.

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Allen Stanford and Bernie Madoff - just two of the villains that the stock market collapse has shed the spotlight on. They are the high profile scammers, but there are a lot of smaller crooks running around desperately trying to hide from the spotlights. And the number of spotlights is growing every day. After Madoff and Stanford, people are taking a far greater interest in the savings and investments they took for granted for so long. The fact that so many have lost their savings and are facing bankruptcy and foreclosure is heart breaking. There needs to be an increase in awareness for everyone to monitor their investments more closely.

For far too long people have made investments and adopted the mentality “Okay, I’ve put in the money, now let someone else worry about growing it.” It doesn’t always work that way. It’s your money and while you can follow the advice of others and allow them to use and expand the wealth you have trusted to them, autopilot does not exist in the investment world. People who misuse your money and lose it are guilty of criminal theft. But those who sat back and never took an interest in what was being done with their money may be guilty of being negligent.

Many areas are reporting the amount of people at risk of losing their homes along with their savings have grown exponentially. Bankruptcy is no longer something that happens to other people; it’s a reality that is staring many in the face.

The good news is that those who are being pro active and seeking professional legal advice, are taking steps to protect themselves and their families from the unpleasant future that may be waiting. Foreclosure and bankruptcy are complex subjects that do not necessarily mean financial ruin. There is a great deal of protection available for those who are suffering financial problems.

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Speaking recently before the Senate Banking Committee, Federal Reserve Chairman Ben S. Bernanke presented a sobering view of the economy. Mr. Bernanke said if, and the key word here is IF, the actions of the new administration are successful in bringing back financial stability and restoring consumer confidence, 2010 may be the year of recovery.

Obviously he could not make any rash promises. The point of contention is that the rescue packages and stimulus plans are a great leap into the unknown. Everything sounds good in theory, but how it will actually work in practice is something that people can only predict, not guarantee. Even as Mr. Bernanke appeared before the Senate, reports of falling housing prices and collapsing consumer confidence kept getting worse.

New York seems to be one of the most affected states, with bankruptcies and foreclosures on the rise. Bankruptcy law firms in Long Island NY are receiving and ever growing number of calls from people looking for protection to help them retain what little they have left in the face of this disaster.

The fact remains that while all the long term plans for economic revival sound great, the average American family is not looking towards the next year. Rather, they are wondering how to survive the next month. Certainly, lower gas prices have helped and elevated levels of consumer spending have kept the economy afloat, for the most part. But foreclosures and bankruptcies continue to rise. Gas prices have maintained low price along with other day-to-day expenses. The logic is, money saved on day-to-day expenses should be used to pay off mortgages and other debt, but this does not seem to be happening. Perhaps this is because we, as a society, are very dependent upon credit.

With people caught between a rock (bankruptcy) and a hard place (foreclosure) it’s not easy to decide which way to go. And with no immediate resolution to our economic woes, unpleasant decisions need to be made and made soon.

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Big Oil has always been a popular whipping post for many of the economic ills that have affected this country over the years. But what has happened over the last one year has not been their fault, sure, they made most of the easy money that was available, but then who didn’t? True, the oil companies made huge profits when they could, but this was the American way and while we grumbled at the prices of gas, that was about all we did.

Today, we have the lowest oil prices we have seen for years. And they look like they are going to stay that way for some time. There’s nothing the oil companies can do about it. Put up the prices even by one cent and the demand will drop in a way that will offset any gains they could have made from the increase.

In a way, low oil prices are not good for us. The reason the prices are low is because of a world wide recession, the demand has fallen to level far below the supply. Producers around the world have had to cut back on production to try and keep oil prices at some reasonable level. I guess you could say the current prices of gas are reasonable.

But is this low price helping us? Sure, it means that less money is flowing into the gas tank and out the exhaust. And in today’s conditions any savings is welcome. But the savings are not enough to ease the pressure on the average American family who are faced with lowered incomes, lack of job security and a fear of what the future will bring. A saving of even $100 a month on gas expenses will not help in a major way towards paying off a mortgage or averting bankruptcy.  In New York, bankruptcy attorneys in Suffolk County and Nassau County are reporting a noticeable rise in clients requesting financial hardship assistance.

We have a new President and he is urging us to keep the faith and hold on until things start to improve. Absolutely! President Obama, despite his recent slip in the ratings, is still looked upon by most Americans as the man who can lead the country out of the morass we are in.

The President has been as good as his word and has set the ball rolling with a $787 billion stimulus package, a bank rescue plan and a housing program which seems like a great start. But the question that is causing much debate is, whether this is the right way to go about it and if the funds are going to be properly utilized. We are still hearing of executives padding their paychecks with money that is coming not from their profits, but from handouts given by the government, or, in other words, the taxpayers. They are still flying to meetings in their luxurious corporate jets. No one is saying that commercial activity should stop or that American industry should appear before the world dressed in rags. But have the people who caused this problem in the first place learned their lessons?

Even as the measures were announced, more banks appeared to be on the verge of collapse. Federal Reserve Chairman Ben Bernanke recently stated that we probably would not begin to see the first signs of recovery until sometime in 2010.

While no one expects a miracle, the question many working class Americans are asking themselves is how long can they hold on? Economic recovery for the country may take a year or two, but they can’t afford to wait that long for their personal finances to improve. The growing number of people you find in the waiting areas of foreclosure attorneys in Nassau County, and bankruptcy lawyers in Suffolk County and so many other places both in and around New York as well as other places in the country are evidence of this.

But the fact that these folks are facing up to their financial problems and getting legal advice on what actions they can tale to protect themselves and their families when faced with the prospect of financial disaster is a positive sign. Things will improve; there is no doubt about that. But until the tide turns, wise people in the Greater Long Island area will be consulting foreclosure & bankruptcy lawyers.

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The major story coming out of Washington right now is the failed bid to bail out the “Big Three” automakers. There are numerous points of view on the issue, but it seems that much of the debate is being driven by emotion at the expense of reason. This is not surprising- the idea of giving more of their hard earned tax dollars away to failing corporations is extremely repugnant to people barely avoiding foreclosure in Nassau County. What we must do in order to make the best decision for the country at large is to step back and really examine the consequences of letting these companies fail.

Allowing the three largest domestic automakers to close their doors would have an enormous and immediate impact on the national economy. The amount of jobs that would be eliminated overnight could range into the millions. Not only the workers at the plants in Detroit would suddenly find themselves without a source of income, but also all of the workers at the plants that supply parts to the larger factories. These smaller factories are spread throughout the country, and in many cases are the major employers in their immediate area.

As the parts these plants make suddenly become unnecessary, so too does the need to deliver them. Any trucking or shipping company that does business with domestic automakers in any capacity would likely find themselves unable to keep their current workforce. Maintenance of delivery vehicles would also become a less sought- after commodity. Once you begin to extrapolate the immediate impact in this way, it is easy to see how widespread the problem would become if these automakers were to shut down.

The possibility of these newly unemployed people finding other employment would also be extremely slim. The local economies around these auto plants basically depend on the majority of the workforce in that area having enough disposable income to sustain them. If one auto plants lays off 50,000 workers, that is 50,000 less people who will be going out to eat, shopping, going to the movies, employing domestic help, etc. Any industry that depends on well-paid workers patronizing their businesses will suddenly be cutting jobs as well. With 50,000 new workers trying to find work in a town that is shedding jobs, the prospect of success is close to zero.

A drastic and immediate increase in unemployment during a period in which the economy is already shedding jobs is a disaster in the making. If these automakers are forced to close, the people that they employ are likely to soon become the newest beneficiaries of unemployment insurance and other government assistance. State governments where newly defunct plants are located will face major budget shortfalls as their income base dries up. The Federal government will then be increasing assistance to states and individual workers while also facing a vastly decreased influx of tax dollars. Since many of the domestic automakers also supply parts for military vehicles, the Federal government would also likely have to create a new infrastructure to address this shortfall. Increased expenditures for unemployment, welfare, state assistance, and replacement of necessary military supply chains, all while facing a shortfall in tax revenue, could end up costing the government far more than the proposed auto bailout. We need to fully examine all of the facts, and not simply act on anger or disgust when addressing this important issue.

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Experiencing a financial crisis can be embarrassing. Often we might try to hide it or otherwise compensate for it in some way: some people will do just about anything to avoid defaulting on their obligations. The fact of the matter, however, is that more and more people are failing to maintain their financial status; the global market downturn is having a monumental impact on us all. Indeed, America is encountering an unprecedented wave of credit defaults, foreclosures, and bankruptcies. For some, it might help to know that you are not alone- even the most financially thrifty and responsible persons can be deeply affected by the turmoil in this unheard-of worldwide economical sandstorm.

The year ending 2008 is expected to see as many as 2.2 million home foreclosures, which was the same amount for 2007 when foreclosures were up by an extraordinary 75%. That is an enormous percentage of the total homeowners in the country. In fact, during a particular 6 month period in 2007, foreclosures numbered 200,000 or more every month. Because there was a record period of growth, there will now be a record period of decline that will impact people from all walks of life. So many homeowners are struggling that the government has passed legislation that will prevent people from losing their properties in the light of this worldwide crisis.

Bankruptcy filings are up as well- by more than an astonishing 30%. By the end of 2008, it has been projected that 1.2 million bankruptcies will have been filed for the year. This is occurring even with the new bankruptcy laws enacted in 2005 that were designed to make it harder to file bankruptcy. In fact, there are so many new bankruptcies being filed that it has created a nearly overwhelming strain for bankruptcy lawyers and clerks- perhaps some of the only people in the world to be benefitting financially from this economic meltdown. Their newfound business will be bitter-sweet, but the fact remains that their services are needed now more than ever. As if to illustrate this point, bankruptcy filings are especially high in the areas hit hardest by the housing slump- California, Florida, and Michigan all report filings up 30% from this time two years ago, and those numbers are expected to increase for some time. Fortunately, many bankruptcy proceedings are allowing consumers to keep their homes, thus alleviating the number of foreclosures the country is currently experiencing.

Last quarter, 1% of all credit card accounts were considered seriously delinquent- 90 days or more past due. When you consider that the total credit card debt in this country is currently 15.4 billion dollars, that represents a huge portion of balances that are technically doomed to default. Last month alone, credit card debt rose by 11.3% - an unexpected increase, but one that has been trending with similar increases for several months now. This means that consumers are using their revolving accounts more to maintain their basic expenses, especially now that funds from refinancing mortgages have virtually evaporated. This is dangerous territory from a credit standpoint, as the situation will almost surely result in more people filing for bankruptcy protection.

The point is that many people are struggling. Even responsible people who have always been very careful about their finances are being included in the ever-increasing surge of foreclosure notices, collection activities, and bankruptcy filings. But you should know that you have options. There are ways to get help, and there are things that you can do to pull yourself up from the drudgeries caused by the global financial catastrophe that we are all experiencing. Bookmark this blog, as we will discuss in clear terms how to manage, utilize, or avoid any of these predicaments.

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It’s not just a problem here in Nassau and Suffolk counties on Long Island, NY. All across the country, Americans are feeling the strain of an economy that is attacking their finances from all angles. Our system is not diseased by defaults, bankruptcies, and foreclosures- those are merely the symptoms of the illness. The real disease is the growing and malignant cancers of excess debt, and increasing expenses. While everyone might build their debt in their own way, we all typically suffer in the same ways when expenses increase. It’s one thing if one or two expenses go on the rise, but when all of the major items that we need to survive in this economy increase dramatically and simultaneously, it means trouble. For these reasons, is it any wonder that we are experiencing this dismal spate of foreclosures, defaults, and bankruptcies? What has happened? Let’s take a look:

The most significant expense-related problem to occur for most Americans was the dramatic increase in gasoline prices. This was caused by an increase in demand, coupled with the decline of the dollar. Very recently, we have witnessed the highest per-barrel cost and the largest percent of cost increases in history. This unprecedented occurrence nearly doubled the cost of vital items and services. As most Americans travel more than twenty minutes to get to work, our cost to actually go to work increased substantially. We went from unrestrained travelers, to citizens who count every mile, and every dollar.

Groceries and pet food have also experienced huge price increases. This has been caused in large part by the excessive cost of transportation. Most of the trucking industry, which is essential for consumables to get where they need to go, runs on diesel fuel, which has seen monstrous price hikes. In addition, the surplus demand and correlating price increases have cause corn and wheat to exponentially increase in price in a very short period of time. The fluctuation of these two items alone has served to severely skew the national average retail food costs.

Heating costs have gone up in direct correlation to the price of oil. Home heating costs were already at record levels when the economy began its more pronounced nose-dive, and now many Americans are wondering how they will afford to keep their homes warm throughout the long winter that lies ahead. To exacerbate this problem, the high cost of delivering energy sources has also risen.

The increased cost of doing business has hit harder than anyone might have imagined it would. The frozen credit market, and the housing crisis has served to make loans nearly impossible to obtain, and when extended have abnormally high interest rates. The types of loans that provide the capital for day-to-day business operations in America are a critical part of our economy. For this reason, we are feeling the effects of the increase of this particular expense rather sharply.

While we obviously feel the pain when the cost of large items rises even further, we pay special attention to the cost of small things- the little everyday things whose costs we don’t normally take into consideration. The cost of coffee and doughnuts in the morning, an espresso in the evening, renting movies or eating out, buying a pack of gum or a newspaper, internet and utilities- nearly everything has increased. In reality, it is through the small things that we truly can define how deep this problem actually lies.

These monumental price hikes are causing many to go down the roads of foreclosure, bankruptcy, and default. While it may seem overwhelming at times, we can adjust and pull ourselves out of this mess, though it may require some time. Bookmark this blog, and in the next installment, we’ll discuss ways Americans are decreasing or even eliminating the above listed expenses.

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It will not surprise many people that the dismal economic forecast is causing many businesses and individuals to make cutbacks. Middle class Americans are struggling to make ends meet, and the resulting decrease in spending passes their hardship on to retailers, corporations, and other former recipients of discretionary spending. What may be surprising, however, is how widely the ramifications of this pattern may spread. Even professional athletes, who have long been at or near the top of the economic hierarchy, are beginning to feel the pinch.

While the plight of a millionaire may not engender sympathy from those folks packing the waiting rooms of foreclosure attorneys in Suffolk County, it is still worthwhile to examine the emerging trouble of these athletes. Late last week General Motors announced that they were no longer going to be sponsoring Tiger Woods, and while this is not a devastating blow to someone pulling in over 100 million dollars a year in endorsements, it does indicate the state of despair at General Motors. It also likely presages a major modification of professional sports.

Sports agents are having an increasingly difficult time finding endorsement opportunities for their athletes, and likewise team owners are becoming unable to fill ad space at their arenas and stadiums. As consumers struggle, they not only stop purchasing licensed team gear and apparel at high rates, but they also stop pumping as much capital into the companies that advertise with their favorite teams. As the revenue stream dries up, cutbacks must be made at every level along the line.

Team owners who for years counted on a steady influx of advertising dollars may now see their profit margin begin to shrink. As this lack of profitability spreads, we will be far less likely to see players make 10 million dollars a year to sit on the bench. Additionally, as the promise of advertising dollars that caused major battles between networks over broadcast rights for certain sports disappears, it is almost inevitable that the expensive NFL or NBA television contracts will become far less attractive. This will in turn lower the level of exposure that teams and athletes have, which will further diminish their economic viability. Companies are not going to pump advertising dollars into a stadium that will never be on a national broadcast or cable channel, nor into a player who is virtually unknown outside of his local area. The result of this will hopefully be an outreach effort by teams to increase local attendance and enthusiasm. The practices of stations blacking out broadcasts of local teams and owners charging five hundred dollars for football tickets may become a thing of the past. Outrageous salaries will also likely become a historical footnote, which in turn will likely make athletes more accessible to their fans. The fundamental changes that appear to be coming to middle class American workers are going to drastically reshape the economic landscape for years to come. Things that we take for granted may disappear, and things we never thought possible may become normal parts of life. As more people become unemployed, and as less money is available for everyone, even the richest athletes will face drastic changes in their respective worlds. As all unsustainable patterns do, the professional sports financial bubble seems to have burst. –