As the economy continues to spiral downward, another retail store is closing it’s doors due to filing bankruptcy. Tweeter, a high end retail electronics store, filed bankruptcy on November 5th.

Initially the bankruptcy court granted Tweeter permission to accept gift cards that have already been purchased by consumers through November 15th, but that deadline has been extended until the stores close, which is expected to happen by December 31st. If you have received a gift card, you need to take your last chance to use the card now.

Keep your eye on other retail outlets that are considering filing for bankruptcy protection as gift cards are considered unsecured debt and may not be honored once bankruptcy papers are filed.

Webster Financial Corporation has announced a suspension of foreclosures for at least the next 90 days, following other companies that have instituted a moratorium on foreclosures like CitiMortgage. Qualified mortgage holders included owners who are more than 30 days behind on their mortgage as of Nov 4, 2008. Webster will try to come up with affordable payment options for the delinquent home owners to help them get back on track.

Webster is also making contact with at risk borrowers to see if they need help to maintain the ability to continue making payments.

Like other mortgage companies, Webster is using lower interest rates, longer terms, refinancing and lower payments in order to stave off foreclosures. Customers with questions about these programs can contact Webster’s loan customer service center at 1-800-270-5400.

As foreclosure rates increase across the country, stress levels are rising amongst families that are at risk of losing their homes. Unfortunately stigma is still attached to financial problems including foreclosure and bankruptcy and some people are succumbing to fears of facing their situation.

KXNT in Las Vegas is reporting 2 deaths that appear to be murder-suicide due to their home being in foreclosure, and other suicide cases are being reported across the country.

If you are facing foreclosure, please contact your lender and a bankruptcy attorney, and if you are depressed please speak to your doctor.

CitiMortgage announced a program to help homeowners avoid foreclosure. Over the next six months, the program is expected to reach 500,000 homeowners who are not currently behind on their payments, but may require help in order to stay current due to economic changes, lower housing values and rising unemployment rates in their area.

The program is in addition to the foreclosure moratorium that is already in practice and is now being extended. The foreclosure moratorium is helping homeowners in trouble by not initiating foreclosures and not completing foreclosure sales that are in the works if the borrower wants to stay in the home and is working with CitiMortgage to create an affordable mortgage payment.

Citi is also working with their loan modification program to help homeowners who are delinquent by formulated an affordable payment by looking at the homeowner’s gross income and either lowering the interest rate, extending the terms of the mortgage or forgiving some of the principal in order to make the payments work for the owner.

If you are facing foreclosure, contact your mortgage company and a competent bankruptcy attorney to review all of your options.

GM is asking the Government for a $50 billion bailout to avoid bankruptcy after already receiving $25 billion in loans in September to keep operations moving.

GM, a 100 year old company is experiencing sales at its lowest level in 25 years, despite cutting jobs, closing plants and restructuring debt. GM believes it can only be saved by a Government bailout because they have already completed the typical steps that occur in a bankruptcy including negotiating with lenders. GM also fears that buyers will be even less willing to buy a car from a manufacturer that is currently in bankruptcy, according to polls that have been conducted amongst potential buyers.