More than half of the nation's consumers recognize that their weak credit scores are to blame for many of their financial concerns. However, many do not understand the measures they can take to improve this important number, according to recent studies. Also, the vast majority of borrowers have not checked their credit scores during the past 12 months.

Despite the general public's failure to check credit scores, it seems that most Americans understand what their credit report means. Many consumers are not aware that their credit report is the primary determinant of their future credit scores.

In addition to rampant concern about credit scores, many Americans believe that they need to get their spending under control, with about 23 percent admitting to buying too much. Another 11 percent indicated that they would like to learn more about putting money into savings. These two behaviors are intimately connected, according to financial experts. People who stretch their budgets too thin and fail to save for the future are generally more vulnerable to financial problems if an emergency arises. That can lead to massive borrowed balances that can be difficult to control.

The good news is that Americans appear to be committing to getting better control of their debt, largely because of the recent recession. By consulting a qualified financial adviser and legal team, you can also avoid bankruptcy and other extreme proceedings that require invasive debt relief interventions.

Source: Coloradoan, "Poll shows we're eager to boost our credit scores," April 20, 2012

Did you know that it's still possible to file bankruptcy multiple times? This is particularly important to remember if you filed for bankruptcy once but the debts were never discharged. In that situation, it's as though you never filed at all.

You can also use Chapter 13 bankruptcy to discharge some of the leftover debt from the Chapter 7 proceedings. This process also has restrictions. If a payer files before four years have elapsed from the time of the Chapter 7 bankruptcy, the request will be denied. The time limit only applies if you received a discharge during the Chapter 7 proceedings.

Furthermore, those who choose to use Chapter 7 bankruptcy after they have already filed for Chapter 13 should be aware that additional time restrictions exist. A Chapter 7 bankruptcy may not be used until six years have passed since the Chapter 13 proceedings. Also, a discharge may only be granted if the debtor has paid back at least 70 percent of the Chapter 13 requirements to the creditors.

Chapter 13 bankruptcies are the easiest to repeat, with only two years' wait between filing dates. If you file within those two years, though, you will not be granted a discharge in the new bankruptcy case.

Source: Jornal.US, "Can you file bankruptcy twice?" Moises Apsan, April 25, 2012

That is why city of Cleveland has initiated a new program designed to solve problems related to both the recent housing crisis and the increasing numbers of UN refugees in America. The solution? House the refugees in homes that have gone through foreclosure.

The efforts in other parts of the country sparked enthusiasm for the Cleveland measure, according to advocates. In New Orleans, for example, high school students regularly assist in renovating abandoned homes that are then sold to school teachers at 80 percent of market value. The teachers must make a three-year commitment to continue teaching in New Orleans schools to receive the benefit. A similar initiative in North Carolina is providing housing for disabled veterans, and in Minnesota, residents are creating environmentally sustainable homes from their flood of foreclosures.

The International Services Center in Cleveland has joined forces with the Cuyahoga Land Bank to administer the local program. Refugees often have a difficult time finding housing because they have no employment history, no credit and only scant assets with which to pay rent. Advocates reported that landlords were continuing to refuse refugee applicants because of these uncertainties.

The homes that are approved for participation in the program must meet a strict code of guidelines. For example, homes must be near the bus route, because refugees often lack privately owned vehicles. The homes must also have a yard and a first-floor bedroom to accommodate children and less-mobile individuals.

Homes provided by the initiative are provided for refugees who have come from troubled parts of the globe, including the politically volatile nation of Bhutan.

Source: Huffington Post, "Cleveland foreclosure crisis gives refugees a fresh start," Loren Berlin, April 19, 2012

As many people struggle with the financial obligations that have put pressure on them since the economic recession, the need for debt relief is ever present. Although bankruptcy is a road toward a financial refresher, it does cost money to start the process. Due to changes in U.S. bankruptcy laws in 2005, the cost has increased. According to the U.S. Government Accountability Office, the cost used to be $921 on average for legal and administrative fees. By 2007, that cost rose to an average of $1,477.

Although the higher price of filing bankruptcy has led to less people doing so, professionals say the people who really need to file are the ones who are unable to pay for the fees. The tax season is often a financial boost that helps them start the process. Households in Ohio and elsewhere may be able to restructure or even eliminate their debt obligations through the opportunity that bankruptcy affords.

Source: CNBC, "Tax Refunds Being Used to Pay for Bankruptcy Filings," Christine Dugas, April 13, 2012

This optimism was met with a stark dose of reality recently as experts have forecasted another wave of foreclosures. One expert in Ohio, the executive director of Empowering and Strengthening Ohio's People, went so far as to say that the upcoming year will bring with it more foreclosures than U.S. residents saw in 2010, which was riddled with them nationwide.

The proverbial writing is on the wall according to Lender Processing Services, a mortgage servicing provider. The company witnessed a 28-percent increase of foreclosure starts in the month of January. A housing watchdog group called 4closurefraud.org also spotted problem signs when they discovered a significant rise in new foreclosures being filed in Florida throughout nearly the entire month of March.

While the foreclosure rate took a tumble between January and February of this year and is down in relation to this time last year, 21 states have seen an increase. Some cities have especially seen a major spike.

Distressed owners in this wave of foreclosures are markedly different than those of a few years ago. In the early portion of the housing crisis, many homeowners who took advantage of no-money-down mortgages, but were subjected to high interest rates, eventually defaulted. This upcoming wave of foreclosures has mainly hit those with traditional mortgages that have been struck by hard economic times.

Source: Reuters, "American brace for next foreclosure wave," Nick Carey, April 4, 2012

The charter airline company originally filed for Chapter 11 bankruptcy protection, which is common for companies in a similar situation. This would also allow the company to rearrange their debt and potentially emerge more financially viable.

The trustee that suggested the conversion said that the popular airline company simply had acquired too much debt and even continues to do so today. There is not a lot of hope that Direct Air could successfully reorganize its debt under Chapter 11 and pay them off, the trustee said. Paperwork filed by the airline shows millions of dollars in debt while it continues to employ some workers.

Records show that the company owed anywhere between $10 million and $50 million to parties like carries, oil companies and televisions stations. Direct Air owes one company, Chemoil, $3.3 million alone.

Like in a household, Chapter 7 bankruptcy brings with it a liquidating process where the debtor must sell off assets in order to make payments on debt. By selling off assets, Direct Air would have no choice but to shut down. The trustee that suggested the conversion asked the court to make a swift ruling on it, as Direct Air initially said it would like to re-emerge as soon as possible following debt reorganization of Chapter 11.

The United States Department of Transportation continues to investigate Direct Air's financial records to see if everything was handled appropriately.

Source: MyrtleBeachOnline.com, "Trustee requests Direct Air bankruptcy be converted to Chapter 7," Dawn Bryant, March 23, 2012

An individual must first gather the facts about bankruptcy, including the marked differences between Chapter 7 and Chapter 13 bankruptcies, in order to make an informed decision. While qualified bankruptcy attorneys are perfect avenues for this sort of advice, here are a couple common misconceptions tied in with bankruptcy.

This might be the biggest fear that potential filers have about the bankruptcy process. Somehow, inaccurate information has leaked into our society that claims you will never be able to rebuild credit after a bankruptcy. A filer might withhold from declaring bankruptcy fearing they will never be able to get a loan for important things like a home or car.

While Chapter 7 bankruptcy remains on your record for 10 years and Chapter 13 for seven years, this does not mean that a filer cannot rebuild their credit during this time. Even while you are in the middle of a Chapter 13 bankruptcy proceeding, you can apply for new credit cards and even purchase a home. However, due to the circumstances, you will likely want to practice caution in doing so.

Declaring bankruptcy is ultimately a better choice than keeping debt on your record for many years. At least with bankruptcy, you're addressing that debt.

Bankruptcy will make your credit score plummet

Similar to the previous misconception, potential filers often figure their credit scores will drop due to bankruptcy, effecting future eligibility for important lines of credit. Credit scores only drop due to late payments, collection, repossessions, etc. If you are diligent in paying bills during bankruptcy, your credit score won't drop much, if at all. Some see their credit score remain unchanged.

Source: Global Grind, "Wisdom Wednesdays with Lynn Richardson: Myths about bankruptcy," Lynn Richardson, March 14, 2012

Some of these misconceptions might have to do with changes made to federal bankruptcy laws back in 2005. These changes put into place an income cap for those hoping to file for Chapter 7 bankruptcy. This was so individuals that made enough money to pay off their debts were not trying to get out of them by using Chapter 7 bankruptcy.

While this income cap might seem like it is set in stone, there are many exceptions to the rule. In fact, there are so many exceptions that the new rules set in place in 2005 barely decreased the number of consumers filing for Chapter 7 bankruptcy.

The income cap is also different for individuals and couples, and can fluctuate with things like number of kids or any major medical expenses. Required expenses like alimony and child support are also considered when calculating the income cap.

Even if an individual or family does not qualify for Chapter 7 bankruptcy after considering all the exceptions, those consumers can opt for Chapter 13 bankruptcy, where they will form a payment plan in attempts to pay debt off. This structure does not come with any income cap.

Income is hardly a suitable gauge for a person's financial status. Even families that bring in hundreds of thousands of dollars a year can be hit by huge, unforeseen expenses, tying them to debt of which they cannot rid themselves.

Source: United States Courts, "Liquidation Under the Bankruptcy Code," Bankruptcy Basics

Information collected by the National Retail Federation paints a picture of responsible Americans using this money for the betterment of their financial lives instead of frittering it away on new toys. Results from the group's survey revealed that 43.8 percent of people who expected to receive money back from the government said they would put some of that money in savings. Last year, this number was 42.1 percent. Additionally, 39.4 percent of those surveyed who were expecting money during tax time said they would use it to help put a dent in their debt.

Some experts say that American consumers are more conscious with how they spend extra money after the rough economic times that struck the country for the past few years. While businesses would certainly like to see consumers blow all their tax return money by spending it on stuff they do not need, long-term financial stability achieved through saving money will benefit everyone in the future.

Money from a tax refund is always helpful, but is by no means a long-term fix for individuals with a lot of debt. Those people might want to look into more permanent measures, like bankruptcy, which can lead to long-term financial stability.

Source: The Gourmet Retailer, "More Americans to Save - Not Spend - Their Tax Refunds," Feb. 27, 2012

The money stems from a $26 billion foreclosure fraud settlement made between some of the nation's largest banks and certain states throughout the U.S. The banks were accused of outfitting homeowners with inappropriate mortgages that they did not qualify for. This left many homeowners with mortgages they could not pay for, thus greatly contributing to the recent housing crisis.

In a roundabout way this does help some distressed homeowners, as plummeting property values have pushed them further and further underwater in their mortgages. However, the money was supposed to be used to directly aid these troubled homeowners in a more sufficient way.

Still, upkeep of foreclosed homes should not be the state's responsibility. The banks that own these properties are responsible to keep them in respectable condition so they don't drive down the property value of entire neighborhoods. Instead, the state is stepping in and paying for an expense that should be paid by banks.

Ohio is not the only state to show little regard for its troubled homeowners. Other states have taken their share of the settlement money and simply used it to help balance the state's general budget.

There are other ways homeowners can avoid foreclosure, such as by declaring bankruptcy. States are clearly not looking out for them, so they need to take matters into their own hands.

Source: ThinkProgress.org, "Ohio to use foreclosure settlement funds meant to aid homeowners to demolish homes," Pat Garofalo, Feb. 21, 2012

There are laws and procedures that govern bankruptcy and recently a former Ohio state trooper admitted to breaking these laws. Instead of approaching the proceedings honestly and reaping the benefits, he pleaded guilty to bankruptcy fraud in addition to a number of other offenses. The 46-year-old man from Powell, Ohio is awaiting his sentencing after recently entering his guilty plea into a federal court in Columbus, Ohio.

He also pleaded guilty to mortgage fraud. Through transactions with three properties he was in the process of buying, and refinancing his home, he was able to bilk lenders out of $678,000. The man would purchase homes under false pretenses and receive kickbacks for it.

The man pleaded guilty to witness tampering after trying to prevent a witness from speaking with the authorities during the investigation. He was also tied in with drug dealing operations.

The man was formerly a member of the police force in Ohio until he resigned in September 2011 following his indictment in the case. His guilty plea was a part of a deal with law enforcement. He also consented to help the federal government in their further investigations. He remains in jail.

Source: 10TV.com, "Ex-Ohio state trooper pleads guilty to wire, bankruptcy fraud," Feb. 13, 2012

Source: Associated Press, "Former Ohio trooper accused of mortgage and bankruptcy fraud pleads guilty," Feb. 13, 2012

In his new role as director of the federal Consumer Financial Protection Bureau, Cordray wants to crack down on the industry that has left so many Americans struggling and in need of debt relief. His appointment to the post by President Obama in the face of congressional opposition will clear the way for the CFPB to work for everyday Americas.

The new proposal would give the CFPB oversight of the 175 largest debt collection companies, accounting for two thirds of the industry's business, and the 30 largest credit reporting companies, which covers 90 percent of that field's business.

Cordray said the effort should "help restore confidence" to consumers that the federal government is looking out for their interests. With so many Americans losing everything during the recession, it's important there is a watchdog out there to crack down on shady practices by collection agencies that have driven people further into debt.

With Cordray at the helm, the bureau could also start trying to crack down on payday lenders, check cashing businesses and student lenders.

Source: New York Times, "Collection and Credit Firms Facing Broad New Oversight," Ben Protess, Feb. 16, 2012

The FTC says the company violated the Fair Credit Reporting Act and the Fair Debt Collection Practices Act in various ways. The company allegedly did not tell consumers that their debt was too old to be legally collectable. This type of debt is considered time-barred. There is a statute of limitations set for each state when it comes to this kind of debt. The FTC said the company also sent inaccurate information to credit reporting agencies and neglected to tell consumers that even a partial payment on any debt would extend the time that debt can be collected.

Source: Washington Post, "Have old debts? Read up on your rights," Michelle Singletary, Jan. 31, 2012