Compared to September 2007, September 2008 saw bankruptcies increase 29%. There were 88,663 consumer bankruptcy filings for the month.

ABI’s Director Samuel Gerdano said in a statement that in addition to the debt which many carry, the cost of gas and fuel, and the disintegration of the housing market has led many to choose bankruptcy.

In fact, if one takes a sampling across the U.S., the personal bankruptcy trends can be clearly seen. According to New West, Montana Chapter 7 bankruptcy filings increased from 664 to 1140 with particular increases seen in September.

Lynn Myers, chief deputy clerk at the state’s bankruptcy court told New West, “We had 25 cases open up in one day. We haven’t seen something like that since October in 2005.”

The expectation for small businesses in Montana is bleak, too, as local lawyer, Edward Murphy told New West, “The big threat is yet to come… I’m talking to a lot of small businesses in a weak condition, without a lot of cash flow.”

According to a Scripps News article on a recent Pew study, “Defaulting on the Dream: States Respond to America’s Foreclosure Crisis,” nine states have already begun offering home loan refinancing programs including Connecticut, Delaware, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio and Pennsylvania.

With over $450 million committed thus far, states hope that they can help homeowners who can’t afford their home or need temporary help until their normal funding situation is restored (such as a new job).

Factors involved in determining if assistance is necessary for mortgage holders include:

• Is the homeowner’s mortgage going to cause financial problems for the holder?
• Allow ARM (adjustable rate mortgage) and fixed-rate mortgage holders to have a 30-year loan at a fixed rate.
• Counseling for homeowners who are part of the program.
• Any future gain from the sale of the home would be shared with the government entity who helps the homeowner obtain a beneficial mortgage.
• The program is not for the rich but middle and lower income classes.
• The program is for lower-priced housing.
• Finally, the new refinanced loans will be made available to those who show an ability to pay back the loan.

Garth Rieman, director of housing advocacy and strategic initiatives at the National Council of State Housing Agencies in Washington, D.C., told Scripps that [state] Housing agencies are “very reliable lending partners and will probably give homeowners very good advice,” Rieman says.

Considering the current rocky condition of the economy, watching your finances appears to be even more important than usual.  U.S. News and World Report offers ideas on the best way to get someone to help you: a financial planner.

As the article points out, if you’re not careful in choosing a financial planner, it’s possible that they will invest your money in mutual funds, stocks, corporate bonds, derivatives or any of a plethora of financial investments that could lead your life savings and retirement plans into the abyss.

So how does one find the right financial planner? After all, as Sheryl Garrett, founder of the Garrett Planning Network, told U.S. News, “Anyone can call themselves a financial planner or adviser,” says Sheryl Garrett, founder of the Garrett Planning Network. “No minimum experience or education is required by law.”

U.S. News offers 6 ideas that with some legwork will improve  your chance of finding a financial planner that’s right for you:

Wikipedia offers additional ideas on the purpose of a financial planner that are also useful including the different types of planning:

Risk Management and Insurance Planning Managing cash flow risks through sound risk management and insurance techniques

Investment and Planning Issues Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment and spending

Retirement Planning Planning to ensure financial independence at retirement

Tax Planning Planning for the reduction of tax liabilities and the freeing-up of cash flows for other purposes

Estate Planning Planning for the creation, accumulation, conservation and distribution of assets

Cash Flow and Liability Management Maintaining and enhancing personal cash flows through debt and lifestyle management

Relationship Management Moving beyond pure product selling to understand and service the core needs of the client

Financing companies are going so far as to offer certain debtors a bounty for closing their loan obligations according to Pittsburgh’s Tribune-Review:

“National City Corp., among the financial institutions hit hardest by the mortgage mess, has begun offering credit line holders $200 for closing accounts with no balance.”

According to Michael Mooney, chief lending officer at Fidelity Bank in the Pittsburgh area, banks are starting to revert to old lending rules they used prior to the easy money era of sub prime and look for such qualifying metrics as credit record, debt-to-income ratio and good income and collateral.

LowCards.com, CEO Bill Hardekopf, says that though credit card interests rates have remained relatively flat - around 12+%, but on an individual basis, credit card companies are making it more difficult.

He told the Times-Review, “Rates are based on an individual’s credit score, so if the issuers see a score going down, it’s very likely their APR (annual percentage rate) is going up.”

A recent article in The Financial Times suggests that plenty of beautiful land is available in Nicaragua and there are already quite a few ex-patriates living in relative luxury on personal finances that support one-fifth the cost of a comparable set-up in the United States.

One of the people featured in the FT piece, Chris Renshaw, had originally planned to stay in Costa Rica but found it too crowded for his linking so he moved to nearby Nicaragua which was much cheaper and less developed.

Nicaragua’s populist president and former Marxist revolutionary, Daniel Ortega, may seem as prohibitive for investment in the country in that land has been indiscriminately re-possessed in similar situations, but a local real estate consultant, Raul Calvet, counters to FT that this is only perception, “We are worried about the effect this could have on prospective investors who don’t know better.”

Regardless, a Coldwell-Banker broker in the area suggests that one must have a good lawyer.

If everything works out for current investors in Nicaragua, they will continue to have access to both beautiful, natural landscapes - some formed by volcanoes - and a rich cultural heritage that includes Grenada, a potential UNESCO World Heritage site according to FT.

Re-financing can be a good move for many considering that rates have increased for many and the new lower rates will make a difference in weekly, household budgets.

In fact, Wikipedia offers several reasons for refinancing:

• Reduction of interest costs by presumably refinancing at a lower rate.
• Extending the due date for repayment of existing obligations easing personal finance burdens.
• Lowering the regular, periodic payments.
• Reducing risk such as changing from a variable rate mortgage that can be dangerous in uncertain economic times to a fixed rate mortgage.
• Raising cash.

In fact, earlier this week, The Mortgage Bankers Association confirmed that refinancings are at their highest level in the past four months due to the lower interest rates.

According to a report by Nova Scotia’s Chronicle Herald, some merchants may be paying 2-3% of a total transaction to the credit card company now - but there’s more to come.

Small business owners worry that with new “premium” cards being offered by credit card companies will force them to pay nearly double the current fees. Mike Foran, a jewelry boutique owner, tells the Chronicle Herald, simply, “It’s a cash grab.”

The “premium” cards will offer incentives to consumer credit card holders for using their card, such as cash back, travel rewards and so on.

The irony is that that the cost for these incentives will be paid by the merchants with whom the consumer transacts.

The pain for the merchant is primarily in Canada (the U.S. already has high fees) where fees have been generally controlled by one agency, Internac. But the new cards bring changes.

Catherine Swift, president of the Canadian Federation of Independent Business, says in a press release, “For example, a purchase of $1,000 would now cost a business around 6.5 cents. But if the charge became 0.65 per cent — the U.S. average — the business would pay $6.50. That’s an increase of almost 10,000 per cent.”

Porteous Suspended

The judge’s lawyer contends that this is the most severe punishment ever handed out to someone residing on the federal bench and feels that it’s unwarranted. But, the facts may tell a different story.

In 2001 when the judge filed for personal bankruptcy, he allegedly incurred significant gambling debts under a fictitious name even though he had been specifically told by officials not to incur anymore debt while in bankruptcy proceedings according to a report by a Fifth Circuit investigative committee.

In addition, gifts from lawyers included “cash payments, numerous lunches, payments for travel, meals, and hotel rooms in Las Vegas.” All of these alleged infractions were cited in a Judicial Conference June report.

While he awaits potential impeachment hearings, and for his infractions, the judge has been given a two-year suspension from the bench by the Judicial Council.