There are several reports floating around which shed light on the financial woes of Bank of America and its subsidiary Countrywide Mortgage. For instance Reuters reports that B of A plans to cut approximately 30,000 jobs in order to cuts costs. B of A investors were not impressed with this plan and are wanting more substantial cuts in order to stem its financial losses. Bank of America was built through decades of acquisitions, many of which were never properly integrated, and some of which have triggered disastrous losses.
One of the worse loss creators is the $2.5 billion purchase of Countrywide Financial in 2008 which has left Bank of America with billions of dollars of bad assets and legal liabilities. Another Reuters article bankruptcy may be in the near future for the struggling Countrywide Mortgage which has resulted in $22 billion in losses from its consumer mortgage division in the last four quarters. Because Bank of America kept Countrywide as a seperate legal entity it could file Chapter 7 or Chapter 11 bankruptcy solely on Countrywide without involving the parent company. All of this is amid reorganization which has has resulted in two (2) brokerage chiefs stepping down.
There is no doubt that B of A is struggling, and making desperate efforts to stay afloat. Likewise many individuals are struggling to keep their financial house in order. Increased unemployment, rising costs, and economic instability are affecting millions of Americans. Meanwhile the real estate market is still very sluggish which has impacted home values nationwide. If you are struggling and overwhelmed by debt, you may need to explore the bankruptcy options available to you. Individuals may file for protection under either Chapter 7 or Chapter 13 of the bankruptcy code. There are limitations and qualifications which must be met under both Chapter 7 bankruptcy and Chapter 13 bankruptcy. Both chapters of bankruptcy offer benefits which are different but ultimately both bankruptcy options help get your debt under control.
Purple Law Firm attorneys are experienced in filing bankruptcy and helping individuals get financial relief. The United States Congress has designated law firms like Purple Law Firm as debt relief agencies. If you are considering your options, consult with a Chattanooga bankruptcy attorney to learn more about how bankruptcy can help you.