{"id":608,"date":"2012-06-27T20:14:53","date_gmt":"2012-06-27T20:14:53","guid":{"rendered":"http:\/\/www.westcoastbk.com\/blog\/?p=608"},"modified":"2014-07-16T04:43:30","modified_gmt":"2014-07-16T04:43:30","slug":"it-appears-californias-new-neutral-evaluation-process-is-a-failure-just-like-debt-consolidation-is-a-failure","status":"publish","type":"post","link":"https:\/\/www.westcoastbk.com\/blog\/2012\/06\/it-appears-californias-new-neutral-evaluation-process-is-a-failure-just-like-debt-consolidation-is-a-failure\/","title":{"rendered":"It Appears California\u2019s New Neutral Evaluation Process is a Failure Just Like Debt Consolidation is a Failure"},"content":{"rendered":"

By Ryan C. Wood<\/a><\/p>\n

Stockton California is the first municipality in California, that I am aware of, that has had to comply with AB 506 or Government Code Section 53760 before filing a Chapter 9 municipal bankruptcy.\u00a0 As of this moment Stockton has not filed for bankruptcy protection yet.\u00a0 What we do know is that the Neutral Evaluation process failed.\u00a0 The city was not able to work out agreements with enough of their creditors to prevent having to file for bankruptcy protection.<\/p>\n

Why the Neutral Evaluation process envisioned by the California legislature will most likely fail to prevent municipal bankruptcy cases are the same reasons why debt consolidation fails for our clients time and time again.\u00a0 Creditors rarely choose to actually take less and work out a reasonable settlement that is possible for the city or person that owes the money.\u00a0 It is also almost impossible to work something out with each and every creditor.\u00a0 Unfortunately there always seems to be a creditor that files a lawsuit.\u00a0 Credit card companies force our clients into bankruptcy just like the City of Stockton\u2019s creditors are forcing them to file bankruptcy.\u00a0 It is no different.<\/p>\n

What happens when you miss a few credit card payments?\u00a0 The first thing that will happen is late charges will be added to the amount owed.\u00a0 Then your percentage rate will skyrocket to well over 20%.\u00a0 Both of these things make it very difficult if not impossible for someone who is already having difficulty making the minimum payment to ever get out from under the debt.\u00a0 Is this in the credit card company\u2019s best interest?\u00a0 Common sense would tell you no.\u00a0 They are not making it easier to pay back the debt, but much more difficult.\u00a0 So if you try and reach a settlement with them to make the terms easier for you to pay back the debt and avoid bankruptcy <\/a>you will most likely be unsuccessful.<\/p>\n

The City of Stockton was forced by California State Law to try and do some sort of debt settlement with their creditors.\u00a0 The creditors new the other option would be bankruptcy and they still said no to better terms to keep the City of Stockton out of bankruptcy.\u00a0 They would rather take their chances after the City of Stockton files for bankruptcy protection.\u00a0 For some reason large credit card corporations and it appears creditors\u2019 owed money by the City of Stockton have crunched the numbers and bankruptcy<\/a> is better for them too.<\/p>\n","protected":false},"excerpt":{"rendered":"

Debt consolidation no matter what you call generally just does not work. Look at the City of Stockton. They were forced to try and work things out with their creditors under California Law and it failed. It failed for the same reasons debt consolidation fails with individuals with overwhelming debts. Creditors would rather take their chances in a bankruptcy case then actually make the terms or repayment good enough to keep someone out of bankruptcy. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[20],"tags":[],"_links":{"self":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts\/608"}],"collection":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/comments?post=608"}],"version-history":[{"count":5,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts\/608\/revisions"}],"predecessor-version":[{"id":1358,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts\/608\/revisions\/1358"}],"wp:attachment":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/media?parent=608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/categories?post=608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/tags?post=608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}