Bankruptcy filings surged Friday as financially troubled consumers tried to beat the advent of a new bankruptcy law that goes into effect Oct. 17.The new law requires consumers to obtain credit counseling, and those with incomes above the state's median have to enter Chapter 13 and agree to a repayment plans with creditors. These changes are expected to make it harder and more expensive to seek bankruptcy protection. Most filers with substantial equity in their homes will continue to file under Chapter 13, and others that don't will file under Chapter 7, according to attorney Jason Gold with the Washington law firm of Wiley, Rein & Fielding. Although there may be people who can't quality for Chapter 7 because of the income test, "the new law really won't change things in the long run," Mr. Gold said. He acknowledged that this is a minority view. The American Bankers Association said the new law closes several abusive loopholes and requires higher-income debtors to repay some of what they owe. "Americans facing financial hardship will find that the new bankruptcy system is open for business and ready to help them get back on their feet," ABA president and chief executive Edward Yingling said.
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Government officials confirmed the California Democrat is under scrutiny over a long-held Maryland property he designated as a second home in 2020.
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Credit availability declined in June as the job market and rising delinquency figures have some lenders concerned, the leading mortgage trade group said.
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The Ocean State is the latest to enact rules prohibiting the agreements that end up tying older homeowners to long-term contracts with real estate brokers.
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CEO Robin Vince refused to comment on "rumors or speculation" about a potential merger between the custody banking giant and its smaller rival, Northern Trust. He also said that the bar for BNY to engage in M&A is "very high."
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House Financial Services Committee Chairman French Hill promised to begin combing through Dodd-Frank to find areas for deregulation, while the panel's ranking member made it clear that Democrats would fight for the Consumer Financial Protection Bureau.
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Gain on sale at JPMorgan Chase fell by 5 basis points in the second quarter, which could be a slightly adverse sign for mortgage banker results, KBW said.
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