Fannie Mae and Freddie Mac announced that they are suspending foreclosures for nearly 16,000 households during the holiday season. Homeowners who have mortgages with Fannie Mae or Freddie Mac and are facing foreclosure can expect a short reprieve between make November 26 and January 9, while the two mortgage companies evaluate whether borrowers facing foreclosure [...]

Before the Bankruptcy Abuse Prevention Consumer Protection Act on October 17, 2005, renters facing eviction could file bankruptcy to buy a little more time and try to work things out with their landlord. But now bankruptcy protection from eviction is extremely limited and expensive. If a tenant has lost an eviction hearing and has a [...]

In Dallas-Fort Worth Texas a debtor filing for Chapter 7 bankruptcy may have to take a means test which looks at the debtor’s average income over the 6 month period preceding the month of bankruptcy filing. In Texas, a single debtor filing for Chapter 7 bankruptcy must not make more than $3,093 per month [...]

If you’re a debtor filing for Chapter 13 bankruptcy you will be required to take a means test to determine if there is enough disposable income to fund a Chapter 13 bankruptcy. During Chapter 13 bankruptcy, a debtor will be required to fill out a B22 form which will generate a budget, with expense [...]

Unfortunately because of the stigma still attached to filing for Chapter 7 or Chapter 13 bankruptcy many people put off taking an honest look at the financial circumstances until it is too late. Many debtors who are good candidates for a Chapter 13 bankruptcy wait as much as 5 years before sitting with a [...]

Dallas-Fort Worth is among several North Texas cities and counties that will get a slice of the $30.3 million from Congress’ Housing and Economic Recovery Act. The money will allow Dallas-Fort Worth to purchase and refurbish foreclosed homes and protect home values in declining neighborhoods that have faced massive numbers of foreclosures. The money [...]

During a married couple’s joint bankruptcy, there’s always the possibility that a spouse may become incapacitated or die. The bankruptcy law states that if a debtor is incapacitated or dies, the bankruptcy case does not automatically end. If it is a Chapter 7 bankruptcy and the deceased or incapacitated spouse has not yet attended [...]

Many debtors filing for Chapter 7 or Chapter 13 bankruptcy may have bank accounts open for their children and want to know if a creditor can seize the money in those accounts during a bankruptcy. Well, the answer is no, a child’s bank account cannot become the property of the bankruptcy estate. But that [...]

When filing for chapter 7 bankruptcy, many debtors find that money is so limited that they cannot afford the bankruptcy filing fee. If a debtor filing for Chapter 7 bankruptcy is in this situation, he/she may be able to have the bankruptcy filing fee waived. A provision of the Bankruptcy Abuse Prevention and Consumer [...]

When a debtor applies for a bankruptcy filing fee waiver, the law states that the bankruptcy court must decide immediately if the waiver application will be approved. Once the decision is made, the information will be given to the United States trustee or bankruptcy administrator, the case trustee, the debtor, and the attorney for [...]

Chapter 7 and Chapter 13 bankruptcy were designed to help families and individuals protect property, assets and money from seizure by creditors. Whether it’s a home, bank account, a car needed to get to work or wages, bankruptcy is available to give an overwhelmed debtor a fresh start. But what if a debtor has [...]

It is important to note that all the assets of a sole proprietor and the assets of their businesses will be considered ONE when a debtor files for Chapter 13 or Chapter 7 bankruptcy. In other words, all of your business assets will become a part of the bankruptcy estate when filing for personal [...]

We’ve spoken earlier about individual owners of incorporated businesses and how the company is handled in a bankruptcy. Now let’s take a look at what happens when a debtor filing for bankruptcy is a partial owner of an incorporated business. In bankruptcy, any stock owned by the debtor filing for bankruptcy comes under the jurisdiction [...]

A common question amongst debtors filing for bankruptcy is, "can a bankruptcy trustee take my business if I file a Chapter 7 bankruptcy?" Well the answer is, yes the bankruptcy trustee can take your business…"well maybe." Many business owners go through the trouble of incorporating their business because they want to protect themselves from liability [...]

After sixty years in business, Harold’s Stores, Inc. filed for bankruptcy last Friday. Harold’s which has been a household name for generations of Dallas-Fort Worth residents, opened its first Dallas area store in 1977; but has been experiencing financial difficulties since the 1990’s. Last year, the company posted a $9.5 million loss on [...]

Auto companies facing possible job losses and sinking profits, such as General Motors Corp., Ford Motor Co. and Chrysler LLC asked congress for as much as $25 billion in emergency loans from the financial industry bailout. Opponents of an auto industry bailout describe the automakers as dinosaurs who have failed to adapt to global [...]

A recent bankruptcy case in the Seventh Circuit Court is a perfect example of what happens when self-employed debtors fail to properly track their expenses, report their income accurately and understand basic accounting. This basic knowledge is even more important when self-employed debtors are trying to file a Chapter 7 or Chapter 13 bankruptcy. [...]

Banks and consumer advocates failed to convince Federal bank regulators that a program designed to forgive huge portions of credit card debt was in the best interest of the economy.
The Office of the Comptroller of the Currency rejected the proposal for a special program that would forgive as much as 40 percent [...]

Dallas-Fort Worth city officials plan to use $6.2 million in federal funds to help people buy foreclosed homes in areas that have been hit the hardest by the foreclosure crisis. The money will come from the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program, and will target areas with high rates of [...]

Fannie Mae and Freddie Mace are launching its most radical program ever December 15 th, in an effort to save hundreds of thousands of delinquent homeowners from foreclosure. The program will allow delinquent homeowners to renegotiate their loans facing foreclosure through an accelerated process. Fannie Mae and Freddie Mac own or guarantee nearly 31 [...]

Texas Attorney General Greg Abbott is proposing that mortgage loan servicers be required to give homeowners 45 days to fix a loan default before the home is put up for foreclosure auction. Currently the law only gives homeowners facing foreclosure 20 days to fix a loan default. But if Attorney Abbott’s proposal is approved, [...]

Students filing for bankruptcy often receive thousands of dollars in student loan money for their tuition, books, fees and living expenses. Since this is often their only source of income, many students are afraid to file for bankruptcy because they believe that their student loan money can be used to repay creditors in Chapter [...]

For those debtors who cannot discharge their student loans in bankruptcy, it is important to pay as much as possible on the student loans while in Chapter 13 bankruptcy. One way a debtor can commit more of his/her income to repaying student loan debt while in Chapter 13 bankruptcy, is to repay the loans on [...]

Anyone who has ever taken out a student loan is quite aware of the fact that student loan debt is next to impossible to discharge in bankruptcy unless the debtor can prove “undue hardship.” But the 9 th Circuit Court ruled in October that student loan debt could be discharged through the confirmation of a [...]

On October 1, 2008 the government launched Hope for Homeowners; but the program designed to help as many as 400,000 struggling borrowers facing foreclosure seems to have fizzled out. In the plan’s first month fewer than 100 homeowners facing foreclosure applied to the program and now the Federal Housing Administration has pulled back its [...]

North Texas home sales fell 17 percent from October 2007, nudged down by job losses, the credit crisis and rising foreclosures. October’s decline in home sales is one of the largest for 2008 and coincides with the foreclosure crisis. Only 5,500 previously owned homes were sold in North Texas last month according to the [...]

It’s quite common for debtors filing for bankruptcy to forget or not realize that they are required to take a Personal Financial Management course within 45 days after filing for bankruptcy. So what do you do if your bankruptcy case is past the 45 day mark and you never took the second required course? First, [...]

The 2005 bankruptcy law requires that debtors filing for bankruptcy take two mandatory classes designed to educate them about personal finance. The first class is a credit counseling course which must be completed before filing for either Chapter 7 or Chapter 13 bankruptcy and the second class is the Personal Financial Management course which [...]

An adversary proceeding during bankruptcy is when someone brings an issue or problem before a judge in an effort to collect damages or have the judge take an action against someone else. There are only 3 parties who can bring an adversary proceeding before a bankruptcy judge; the creditor, the bankruptcy trustee and the [...]

When a landlord files for bankruptcy, many tenants are left in the dark about their rights and protections. Well, the good news is that when a landlord files for bankruptcy, the tenants do not lose any of their rights due to the bankruptcy. What this means is that the rights, as defined in your [...]

As the nation face’s one of the toughest economic crises in recent history, the country is experiencing another round of layoffs. Over 240,000 jobs were cut in October, raising the country’s unemployment rate to a 14-year high of 6.5 percent according to a report released by the Labor Department. The current unemployment rate is higher [...]

When a debtor in Chapter 7 bankruptcy dies, what happens to the case? Well surprisingly, the dead don’t get off the hook that easily. According to precedent set by previous bankruptcy cases a debtor can also include the dead. The Chapter 7 bankruptcy case would continue and a judgment will be made based on [...]

JPMorgan Chase, who received $25 billion through the U.S. Treasury Department, announced that it will not initiate foreclosure on any more homes for the next 90 days while it executes a plan to help borrowers save their homes. Chase plans to offer refinanced mortgages to homeowners in toxic loans and facing foreclosure. They will [...]

According to bankruptcy law, if a debtor receives an inheritance within 180 days of filing for bankruptcy, that inheritance becomes the property of the bankruptcy estate. In this case a debtor will be required to disclose to the bankruptcy trustee and debtors that they received an inheritance. The bankruptcy law calculates the 180 days from [...]

Many married couples who file for bankruptcy together unfortunately find themselves filing for divorce before their Chapter 7 bankruptcy has been discharged. So what happens when a couple wants to part ways but their Chapter 7 bankruptcy is still under review? Well, actually a joint bankruptcy, which can only be filed by spouses is [...]

Circuit City announced on Monday that it is shutting down 20% of its U.S. stores and laying off 17% of its workforce by December 31, 2008. The move comes as the company experiences its 2nd quarter of losses this year with a 13% decline in sales in September. By closing 155 of its [...]

A constant debate occurs between the exemptions allowed to keep an individual safe at the time of bankruptcy. Most states have the option of opting for federal exemptions (once mandated on the federal level) or state exemptions. State exemptions are created within each state’s constitution and statues and allow each state’s resident to keep certain [...]

As the economy slows an increasing number of consumers are upside down on their car loans. What that means is that they owe more than the car was worth. We haven’t heard about this issue as much as upside down mortgages; but upside down car loans are becoming a real issue as consumers [...]

According to an article in the Star-Telegram Dallas-Fort Worth residents are facing massive job losses again. Bell Helicopter is cutting 500 jobs after losing a big defense contract with the U.S. Army. The Pentagon decided to cancel the Army’s $5 billion-plus contract with Bell to develop the ARH-70A Armed Reconnaissance Helicopter earlier this month. The [...]

According to an article in the Star-Telegram officials from the Treasury and FDIC are currently negotiating a plan that would get the U.S. government to guarantee the mortgages of nearly 3 million distressed homeowners facing imminent foreclosure. The plan, if approved would be the first of its kind to offer relief directly to homeowners and [...]

When filing for Bankruptcy with an outstanding car loan you may want to consider reaffirming the debt with the lender. When you reaffirm the car loan you agree that you will be responsible for the car loan debt despite filing for Chapter 7 bankruptcy. In other words, even after filing for bankruptcy you will [...]

The U.S. Treasury Department ended negotiations today with automakers who want government financing for a merger between General Motors and Chrysler. The U.S. Treasury Department is hesitant about investing billions of dollars of taxpayer’s money into a merger that will cause over 90,000 layoffs in the auto industry. Cerberus Capital Management (owner of Chrysler) and [...]