May 2010 Archives

Georgia still lags behind much of the country in terms of job creation but the state faces several other economic threats, according to an Atlanta Business Chronicle article highlighting analysis by Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University. It is not looking so great the Georgia economy.

The economist and professor recently released his Forecast for Georgia and Atlanta May 2010.

Among the threats is the massive, underwater Gulf of Mexico oil gusher that has cast a dark shadow over the Gulf coast's $60 billion leisure and hospitality sector. The spill will increase foreclosures and the need for Georgia bankruptcy lawyers in the short term, he said.

As financial analysts revisit the notion of an economic recovery in a time of flat job growth, the results of a new survey released yesterday conclude that many Georgians remain in financial "distress," the Atlanta Journal-Constitution reported.

That means Georgia bankruptcy lawyers are probably keeping busy as households struggle under the weight of crushing debt and scarce job opportunities.

Credit counseling agency CredAbility, using data from public- and private-sector sources to determine financial stability, found that Americans scored an average of 64.2 out of 100, compared to the 60.1 average scored by Georgians. Mark Cole, the company's COO, explained the significance of the scores:

"If you have a 70 or below, you are in trouble, in distress, your situation isn't stable anymore and you need to take immediate action. You can't afford to wait." 

While the Texas Rangers team claim first place in the American League West division, the professional baseball team has dropped the ball financially, according to Yahoo News. Following in the footsteps of the Chicago Cubs of 2009 and the Baltimore Orioles of 1993, the team filed for Chapter 11 bankruptcy protection.

Perhaps this doesn't come as a surprise to baseball fans but the Texas Rangers' largest unsecured creditor is current Yankee slugger Alex Rodriguez. The Rangers paid him a $252 million contract and still owe $24.9 million on the record-breaking 10-year deal, six years after his trade to New York.

Other top creditors include Baltimore Orioles pitcher Kevin Millwood ($12.9 million) and current Rangers third baseman Michael Young ($3.9 million), according to The Wall Street Journal.

FindLaw tells us that bankruptcy can do quite a bit to help struggling households, individuals and businesses get out from underneath insurmountable debt obligations. Filing for bankruptcy can wipe out credit card debt, eliminate some kinds of liens and put an end to creditor harassment.

But it's equally important to also know what Atlanta bankruptcy lawyers cannot do for you.

A bankruptcy filing can't stop a secured creditor from repossessing a car or other property, eliminate spousal or child support obligations, get rid of student loans (except in a few rare instances) or wipe out tax debts. There are other more specific debts for which bankruptcy won't help, but those are the main ones.

There's no such thing as too much advice for getting out from underneath a crushing pile of debt, as long as it's sound advice. Well there are feasible ways to dig out of debt that seems to be taking over your life. Wall Street Journal reporter Karen Blumenthal discusses strategies for negotiating payment options with creditors, working with credit counselors and even filing for bankruptcy.

While Atlanta bankruptcy lawyers are skilled at helping you restructure your debt and get a fresh start, it should only be considered a last option.

The article explains how the relatively new Credit Card Act requires credit card issuers to print a toll-free number for a credit counseling service on each bill. However, she points out that part of these nonprofit firms' funding comes from the credit card companies themselves.

A committee representing the unsecured debtors in Taylor Bean & Whitaker Mortgage Corp.'s Chapter 11 bankruptcy case filed five complaints requesting that roughly $30 million in loans taken by top executives such as Lee Farkas be repaid with interest and fees, according to the Ocala Star-Banner.

Former Taylor Bean Chairman Lee Farkas allegedly skimmed north of $50 million from the company until it entered bankruptcy last summer, as we blogged about last week. New leadership at Taylor Bean, once the largest mortgage lender in the United States, currently is searching for assets to cover its claims.

Although this case is being handled in Florida, where Taylor Bean is located, bankruptcy law is the same in all 50 states; therefore, a bankruptcy attorney in Atlanta could explain how this case might play out.

Owed tax debt can happen to anyone, even tennis champions.

The Atlanta Journal-Constitution reported yesterday that former Atlanta-based tennis pro Murphy Jensen owed more than $1 million in unpaid taxes, including $156,007 in delinquent income taxes owed to the state of Georgia from 1995 to 1998. He and his brother Luke won the French Open men's doubles title in 1993.

Murphy Jensen, now 41 and living in Santa Monica, California, did not speak with reporters for the article.

He filed for bankruptcy in Los Angeles on Dec. 30 of last year, where he listed just $29,159 in assets, including several valuable tennis rackets. His more than $1 million in liabilities was made up mostly of delinquent tax debts, according to the Detroit News.

A FindLaw Answers query from "skeetbecker" posits the question of whether or not it's a good idea to pursue a bankruptcy filing without an attorney. Skeetbecker says the question is for his or her relative, who can't afford legal representation.

That's likely a common question, since anyone facing the prospect of bankruptcy is not in the position to cut large checks. And no doubt this is something Georgia bankruptcy lawyers who want paying clients have thought about.

A reply from "Tax_Counsel" first tells skeetbecker that there is no law saying you must use an attorney for bankruptcy (or any other legal process, for that matter).

Businesses and households aren't the only entities teetering on the brink of bankruptcy. A new survey of bankruptcy experts finds that 90 percent of them expect a major U.S. municipality to default on its debt by 2012, the Wall Street Journal's Bankruptcy Beat blog reported. Why the sure bet of municipal default?

The survey by AlixPartners, the results of which were highlighted in a press release, even takes into account the situations in Greece, Spain and other nations on the verge of debt default. Only 63 percent of those surveyed expect a country to default by 2012.

Roughly 31 percent of those surveyed said they expect U.S. bankruptcy filings to increase by more than 15 percent in the next year, although most of the respondents were referring to business restructurings and not consumer bankruptcy.

A bill passed last week by the U.S. Senate attempts to create more safeguards in the financial industry in order to prevent another catastrophe like the one that rocked Wall Street in the fall of 2008. Among the bill's provisions is a plan to create a consumer financial-protection bureau, as Businessweek reported. This would impact debt held by the average American. 

The bureau would be housed within the Federal Reserve Bank and would be charged with policing banks and other businesses offering financial services. With the stated goal of minimizing credit card and mortgage-lending abuses, success may translate to less of a need for Atlanta bankruptcy lawyers.

An independent, stand-alone agency was proposed in the House bill; which Rep. Barney Frank hopes to revive when lawmakers hash out a Senate-House compromise. Critics have said that only a stand-alone agency can effectively police the financial industry.

What does this mean for average U.S. consumers?

In the still-dicey US economy, officially in recovery but without the necessary uptick in jobs or wages, who has time to kick off their shoes and recline in their Barcalounger? Apparently not enough people to keep the once-celebrated lounge chair maker in the black, as Reuters reported that Barcalounger Corp. has filed for business Chapter 11 bankruptcy protection.

The company, incorporated in Delaware but with its main offices and manufacturing plant in Martinsville, Virginia, started making its famous recliners in 1940. All of its equity is owned by an affiliate of Los Angeles-based investment firm Hancock Park Associates.

Hancock affiliate HPC3 Furniture Holdings agreed to bid $1.5 million for Barcalounger's assets, estimated at somewhere between $1 million and $10 million. The company reported liabilities are estimated at between $10 million and $50 million.

Short of calling an Atlanta bankruptcy lawyer to seek protection from its creditors, city Mayor Kasim Reed has very few revenue-raising options for closing Atlanta's $48 million budget gap. So the mayor and former corporate attorney is taking steps to organize city hall more efficiently in order to tackle the city budget, according to Atlanta Journal-Constitution columnist Henry Unger. 

Mayor Kasim Reed took office earlier this year and wants to change what he sees is a culture of waste and inefficiency. One of his first efforts was to prompt his commissioners to identify "three dumb things" each department does (or doesn't do).

He discussed his vision in a phone interview with the columnist, saying he plans to run Atlanta's government in a "radically different fashion." His least favorite phrase: "It's always been done that way."

Most new college grads are not thinking about financial wisdom. They just want a job. But sometimes a little financial wisdom could be what new college grads need.

Unless it's for a job interview, the last place a recent college graduate wants to be is in the office of an Atlanta bankruptcy lawyer. Times are tough for starting a career, much less finding and keeping a good job, so it pays to gather as much sound financial advice as possible.

Atlanta Journal-Constitution financial columnist Rana Cash offers five pearls of financial wisdom specifically for recent college graduates in a recent article:

An Atlanta Journal-Constitution op-ed expressed grave concern about the Georgia General Assembly's vote to ditch the refundable portion of the Low Income Tax Credit (LITC). Laura Lester, the op-ed writer, is the Atlanta Community Food Bank's director of advocacy and education.

The credit provides wage support and a tax break for about 1 million of Georgia's poorest workers, those earning less than $20,000 annually. In these trying times, advocates for the working poor are concerned that every little bit helps struggling families avoid a visit to an Atlanta bankruptcy lawyer.

The average amount of the refund? About $26.

It's hard to feel too sorry for former Taylor Bean & Whitaker Mortgage Corp. Chairman Lee Farkas, if allegations that he skimmed more than $50 million from the company are true. A Wall Street Journal article details the alleged theft and hiding of assets in the three years prior to its collapse.

The Florida-based mortgage lender laid off 2,000 employees last August and filed for Chapter 11 bankruptcy protection just three weeks later, according to an article in the Ocala Star-Banner.

But while $50 million may be just a drop in the bucket of Taylor Bean's tens of billions of dollars under management, it shows just how corrupt many mortgage lenders and/or their executives became during the real estate bubble.

While this may not be a direct bankruptcy post, it does highlight issues for anyone who may find themselves down the path of bankruptcy. Older investors seem to attract peddlers of financial fraud. It is a sad case of being an easy target for financial fraud.

After the stock market began to collapse in the fall of 2008, taking with it a substantial chunk of funds earmarked for retirement, older Americans became concerned about how they'd afford to live out their lives after work. And super low interest rates, as a Wall Street Journal article pointed out, don't make bank deposits very attractive either.

So where do investors in their 50s and 60s turn for investment advice? The last thing a couple that has worked hard all of their lives wants to do is call an Atlanta bankruptcy lawyer.  

Older Americans in this situation too often fall right into the hands of unscrupulous scam artists, according to the WSJ article. Joseph Borg, the chief securities regulator for the state of Alabama, said that most people on the verge of retirement these days is panicking about not having enough money to last their twilight years:

"Along comes a scam artist with a guaranteed, super-safe deal. It's a perfect storm."

Texas-based poultry producer Pilgrim's Pride announced plans to create 1,000 jobs at its new plant in downstate Coffee County, according to the Atlanta Journal Constitution. The company filed for Chapter 11 bankruptcy protection in December 2008, laying off 900 workers at the now-shuttered Douglas plant and 280 workers at the defunct Dalton plan.

The unemployment rate in the region spiked to roughly 18 percent in the wake of the chicken plant closings, while an estimated 400 chicken farmers, truckers and others dependent on the poultry plants also lost jobs.

Pilgrim's Pride exited bankruptcy in December 2009, announcing a $45.5 million net loss for the last quarter. And according to CEO Don Jackson, people are now eating more chicken than they were during the depths of the recession:

"We fully believe that with the strengthening economy and improving fundamentals, consumer demand for chicken is increasing."

We all know that picking up the pieces in life after a bankruptcy is hard. One such person who knows that first hand is Kenny Anderson.

Former New Jersey Nets guard Kenny Anderson is not unlike other well-paid professional athletes who lived large, ignoring the future, only to lose everything in bankruptcy court. But Kenny Anderson's story, as reported by the New York Daily News, is a rare success-failure-success story.  

He earned nearly $50 million throughout his 15-year career in the NBA and now he's setting his sights on coaching. Once known as a hard-partier and a womanizer, Kenny Anderson now takes his work more seriously than ever and is trying to change his bad boy image:

"People have to get off that stuff. I'm 38 years old. I'm out here doing what I got to do to make my dream come true. I want to coach."

As any Atlanta bankruptcy attorney will tell you, starting from scratch after losing everything is not for wimps.

If you're wondering why we spill so much ink (or pixels) about student loans in a bankruptcy blog, consider this: The US Dept. of Education just released data suggesting that the FY 2008 "cohort" default rate for student loans is 7.2 percent, up from 6.7 percent the previous year, an increase from the 5.2 percent recorded for FY 2006.

In other words, more and more educated people who took out student loans and are unable to find work are contemplating a trip to their local Atlanta bankruptcy lawyer. The term cohort default rate refers to the percentage of federal student loan borrowers who began repaying their loans in a given fiscal period who defaulted within the following year.

But the important thing to understand is that defaults are on the rise.   

It can be hard to make payments of student loans when the economy is still struggling.

While it's difficult to discharge student loans in bankruptcy court, borrowers who feel overburdened can take steps that ease the pain somewhat, as discussed in a New York Times blog entry. The author first summarizes recent changes to the federal student loan program, which are intended to take the pressure off borrowers, but points out that these changes won't be enacted for another four years.

So, that means struggling graduates with heavy student loan debt who would like to avoid a trip to an Atlanta bankruptcy lawyer's office will need to try some other tactics to stay afloat.

The blog entry plumbs the pages of Chuck Stewart's "Bankrupt Your Student Loans and Other Discharge Strategies" for advice. Five general bits of wisdom from the book are summarized:

In a 7-2 opinion written by freshman Justice Sonia Sotomayor, the US Supreme Court ruled that debt collectors can not duck lawsuits stemming from erroneous collection notices, The Wall Street Journal reported. Prior to the ruling (Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA, PDF), debt collectors often would blame a legal error to shield themselves from such lawsuits.

Atlanta bankruptcy lawyers no doubt are taking note of the new precedent, which may affect some of their clients' cases.

Justice Sotomayor wrote the following in her 30-page opinion:

"We have long recognized the common maxim, familiar to all minds, that ignorance of the law will not excuse any person, either civilly or criminally."

Perhaps this comes as no surprise to those struggling to pay the bills or who already have called Georgia bankruptcy lawyers, but the Atlanta Business Chronicle reported that Atlanta is one of the most debt-saddled cities in the nation, based on data from credit reporting company Experian. That means most of you in the Peach State's largest metro is living in debt.

The city ranked No. 4 in Experian's ranking of the top 20 US metropolitan areas with the highest average debt load per consumer, at $26,063. And believe it or not, that figure does not include home mortgages; the study was conducted using data pertaining to credit card, auto loan and personal loan debts.

To provide a frame of reference, the national average debt load per consumer as of March was $24,775.

We all know these are hard times, especially for recent graduates who can't seem to find a job. But what about the federal government's rules for bankruptcy and student loans?

A U.S. News & World Report article discusses the "secret" tactics used to collect payments for federal student loans, which are nearly impossible to discharge in bankruptcy court. Since federally backed loans use taxpayer funds, the author points out, the government enforces repayment through "comparatively draconian" laws.

For example, and unlike most other loans, federally backed student loans are not subject to a statute of limitations and also can be collected from Social Security payments after retirement.

While a bankruptcy attorney in Atlanta can better explain how the law treats such loans, a collections manual that was inadvertently posted on the Dept. of Education's website sheds some light on how the feds go after your debt.

A CNN article profiles the repo men for the rich; like Ken Cage, who repossesses yachts, private jets and other expensive toys of rich folks who fall behind on their bills. He said his most expensive repossession was a fairly new $14 million Gulfstream jet.

Usually he sells the items himself, takes a small cut of the proceeds and gives the rest of the cash to the banks. As the recession affects even the super-rich, Ken Cage says business is booming:

"We sold 12 boats and airplanes in a day."

Not all of those who lose their fancy toys are in bankruptcy court, but a bankruptcy attorney in Atlanta or elsewhere may be able to help if you risk losing your private helicopter or yacht to someone like Ken Cage (What, you don't have a yacht?).

All of the indicators watched by economists looking for the light at the end of recessionary tunnel, including unemployment and consumer confidence, are intricately linked to one another. And while the tide that otherwise lifts all boats is down, bankruptcies usually are up. 

Consumer confidence unfortunately remains weak in Georgia, according to a study discussed in an Atlanta Business Chronicle story, but it is showing signs of improvement. The study, by Georgia Southern's Bureau of Business Research and Economic Development (BBRED), suggests that consumers are watching their spending very closely.

"Gone With The Wind," the classic story of plantation life in Civil War-era Atlanta, is now making an unlikely appearance in the bankruptcy filing of investment bank Lehman Bros., as explained in a Wall Street Journal article.

Lehman Bros. owns an 89 percent stake in Culver Studios, which produced "Gone With The Wind" and several other classic films from Hollywood's golden age. The now-struggling, 14.1-acre studio nearly went into foreclosure last year but secured a loan from Lehman Bros. in a deal that the investment bank is asking to have restructured.

Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection in September of 2008, according to Reuters, as the global financial meltdown was threatening to plunge the world's economies into another depression. At the time of its filing, Lehman Bros. listed more than $600 billion of assets, while $1 trillion in claims is expected.

It was the largest bankruptcy filing in US history.

One of Benjamin Franklin's most truthful quotes (and I paraphrase) is that the only things certain in life are death and taxes. So while you may see the light at the end of the debt tunnel by walking away from an unpayable mortgage, a Wall Street Journal article makes it clear that the tax man will still come knocking (regardless of the door you happen to be behind).

Most taxes cannot be eliminated in bankruptcy and if the Internal Revenue Service recorded a lien on your property before you filed for bankruptcy, FindLaw points out that you're still on the hook for that tax lien.

Atlanta bankruptcy lawyers are best suited to answer any questions about tax obligations in the wake of foreclosure or bankruptcy, including the tax obligations of canceled debt covered by the Journal article.

Consumers who use credit cards, secure a car loan or take out a mortgage understand (or should understand) that creditors will call a debt collector if the bills are left unpaid. But federal law prohibits the use of harassment, threats or profanity by debt collectors, according to a CBS News article.

That doesn't mean they don't do it anyway.

More complaints against debt collectors have been filed with the Federal Trade Commission last year (about 100,000) than in any other year. Lawsuits against debt collection companies also spiked last year by 60 percent, 8,200 suits in total.

There's plenty of blame to go around for the worst economic recession since the Great Depression, so perhaps finding a sole scapegoat for this mess is an exercise in futility. And plenty of households who had to employ the services of Georgia bankruptcy lawyers were living way beyond their means.

However, ordinary citizens should be able to trust people in leadership positions.

That is the gist of commentary on Bloomberg Businessweek suggesting that former Federal Reserve Bank Chairman Alan Greenspan's arrogance set up the U.S. for its current troubles.

The "Money Builder" blog maintained by Forbes discussed a potentially emerging market that speaks volumes about the current (and future?) state of the job market: Student loan insurance. Student loans are about the only type of debt that usually can't be discharged in a Chapter 7 or Chapter 13 bankruptcy proceeding, as FindLaw explains.

It's not impossible, but debtors must be able to prove that repaying the loan would create a "severe hardship," which could best be explained by an Atlanta bankruptcy lawyer.

The Forbes blog takes a look at how pessimism among recent college graduates and those who have gone back to school to train for new careers could open up a new market for student loan insurance. It's not clear whether such a product exists, as the blog entry discusses it as a hypothetical.

While Georgia still ranks among the top three states for personal and business bankruptcy filings per capita, according to Bloomberg Businessweek, Atlanta's WSB Radio reported that Atlanta has been ranked as the number one city for college grads to start their careers.

It may seem like the two statistics are in opposition to one another, since a high volume of bankruptcies often correlates to high unemployment and a lack of hiring. But the ranking by Apartments.com and CareerRookie.com found that Atlanta has the most favorable concentration of jobs requiring one year or less experience and availability of affordable apartments.

Phoenix ranked just below Atlanta, followed by Denver and Dallas.

The thing about so-called Ponzi schemes is that the con men running them usually get caught once the overall economy goes south, often revealing the underlying scam. That was true for convicted fraudster Bernie Madoff, who was sentenced to 150 years in prison after bilking more than 100 victims out of billions of dollars, as covered by The Wall Street Journal.

Now add convicted felon Edward Farley to the list, who according to an Atlanta Journal-Constitution article also victimized more than 100 people in a complex Ponzi scheme based on Atlanta's real estate boom. His cornucopia of charges included bank fraud, bankruptcy fraud, conspiracy involving mortgage fraud and check-kiting.

All told, his ill-gotten proceeds are estimated at about $24 million at the expense of individuals, small businesses and banks. The 47-year-old convict was sentenced to 25 years in federal prison two days ago after pleading guilty to the charges on Nov. 5.

Bankruptcy provides a certain amount of shelter and relief for households that are no longer able to keep up with their financial obligations. But a bankruptcy filing can remain on your credit record for up to 12 years, according to FindLaw, while an article in MSN Money says it only can remain on one's record for 10 years. 

That doesn't mean filing for bankruptcy automatically means you have zero access to credit, as Atlanta bankruptcy lawyers would agree, it just makes credit that much more difficult to obtain.

On the bright side, Chapter 7 bankruptcy may actually improve one's access to credit from some lenders, since the discharge of debts under Chapter 7 can only be used once every eight years. However, you'll still need to rebuild your credit score in order to prove that you're not such a high risk after all.   

So how does an individual or family that filed for bankruptcy establish credit after bankruptcy?

Consumers with bad or borderline credit, or maybe who are just too young to have established credit on their own, may ask a friend or relative to co-sign a loan. Co-signing a loan makes you financially responsible for the debt if the primary signer on the loan defaults, as explained in a USA Today article.

The article, which is about common financial mistakes, cautions against co-signing in most cases. Nessa Feddis of the American Bankers Association, who says individuals should always assume they'll have to repay the loan before co-signing, was quoted in the article about being careful who you help:

"I would be more cautious about co-signing for a romantic relationship than in a parent-child relationship. Relationships can end up badly. There can be a lot of acrimony, and that could change someone's interest in repaying that loan."

While an astounding 62 percent of household bankruptcies are the result of medical costs, as a CNN article explains, sometimes it's just a matter of not properly managing the family budget. Often it's the seemingly little things, that daily double latte or frequent dinners out, which get you.

So if you'd like to avoid calling an Atlanta bankruptcy lawyer, you might want to start working on a strong but flexible household budget, as explained in a Christian Science Monitor article.

Just doing some quick math, that $4 latte before work costs about $80 per month, which is just shy of $1000 per year. Is that more than you have in savings?

Six Flags Over Georgia, Six Flags White Water and American Adventures give Atlanta thrill-seekers a few options for the upcoming summer season. But a bankruptcy filing in June 2009 threatened to close the parks for good.

Fortunately, as reported by the Atlanta Business Chronicle, parent company Six Flags Entertainment Corp. has emerged from a yearlong Chapter 11 bankruptcy restructuring. The company, which operates 21 parks throughout the world (mainly in the US), was able to shed $1.7 billion in debt and also secured $725 million in equity from new shareholders.

The bankruptcy filing listed $2.4 billion of debt, so the entertainment company still has work to do in order to get itself back into the black.

Ask any bankruptcy attorney in Atlanta and they will tell you that filing a Chapter 13 bankruptcy petition will not provide relief from your unpaid student loan balance. But at a time of such job scarcity, this leaves many would-be bankruptcy filers between a rock and a hard place.

That's why Minnesota Sen. Al Franken (D) and Illinois Sen. Dick Durbin are urging fellow lawmakers to institute reforms that would allow at least a partial discharge of private student loans, US News reported.

Thousands of recent graduates, competing against already-experienced job-seekers, are falling behind on their student loans. U.S. News cites government data in stating that more than 20 percent of students who took out private student loans in the past few years have defaulted (few specifics were given, however).

In the interest of getting their finances under control in an environment of high unemployment, tightened credit and general economic uncertainty, many households are turning to debt settlement companies. However, the complaints against these debt settlement companies are on the rise. Stephen A. Cox, president and CEO of the Council of Better Business Bureaus, offers these words of caution in a BBB press release:

"The truth is that the process doesn't work for many consumers, it has potentially serious negative consequences, and should primarily be used as a last ditch effort to stave off bankruptcy."

Many of the complaints allege outright fraud, as several already struggling consumers told various Better Business Bureaus across the country that they paid hundreds of dollars in fees only to see their debt load increase. Attorneys General from 10 states, not including Georgia, have filed suit against a number of companies.

Credit bureaus responsible for tallying that mysterious yet all-important credit score have traditionally been tight-lipped about their methods. But CNN Money revealed some information from Fair Isaac & Company, responsible for the ubiquitous FICO score, about the impact of late mortgage payments and foreclosures. It turns out that foreclosure can possibly hurt your credit score.   

If you're late on your monthly mortgage payment, it will cost you. And if your house slips into foreclosure, it really will cost you. That much we already know; but how does that translate in terms of numbers?

Fair Isaac used hypothetical consumers to come up with the averages reported by CNN. We'll spare you the math, but here is the range of point deductions associated with late payments, foreclosure, short sale or bankruptcy:

Not even places of worship are immune to the most serious economic recession since the Great Depression. The Atlanta Journal-Constitution reported on the auction of about 100 sacred idols that once adorned the now-bankrupt Hindu Temple of Georgia in Norcross.

As reported by the same paper last fall, the temple filed for Chapter 11 bankruptcy protection in October 2009. According to the foreclosure notice, the religious organization defaulted on a $2.3 million bank loan on the nine-acre property that was valued at $5 million. As a result, the Hindu temple had to auction off their idols.

The temple, which claimed to have $9.4 million in assets but $15 million in liabilities, pulled in about $89,000 by auctioning off an estimated $4.5 million worth of elaborate wood carvings and statues of Hindu deities.