As more Americans face decreased income due to job loss, business closure or decreased access to credit, some of the simple, yet critical, things in life are now in jeopardy–simple things such as utilities. Many Dallas-Fort Worth residents who can’t afford to pay for lights, gas or even hot water face shutoff of their utilities. The most vulnerable citizens in Dallas-Fort Worth to utility shutoffs include senior citizens, the poor and families with young children.

If you are facing a utility shutoff, filing for bankruptcy will prevent the utility company from disconnecting your service. Of course you don’t want to file bankruptcy only because you are behind $300 on your utility bill; but most people facing utility disconnection are also struggling with their mortgage payments, credit card bills, and other debts. Utility disconnection is usually a chronic symptom of greater financial troubles that might be best handled in bankruptcy.

How It Works

Once your utility shutoff is stopped by filing bankruptcy you will be responsible for paying all utility bills you incur after your bankruptcy filing date. But the bills you owed before filing bankruptcy will be discharged in a Chapter 7 bankruptcy or included in your repayment plan in a Chapter 13 bankruptcy . Many utility companies will require bankrupt debtors to place a deposit with them to continue the utility service with their company; but usually will give the debtor 20 days to come up with the deposit. If the deposit is not paid, the utility service will be disconnected.

According to an article in the Dallas Morning News, sales of pre-owned homes in the Dallas-Fort Worth area dropped 33 percent in November as consumers held back due to worries about job losses, debt and the general instability of the economy. Only 4,146 pre-owned homes were sold in November, the lowest monthly sales total in five years. Sales of condominiums were even worse with sales dropping 44 percent in November. Currently it is taking an average of 80 days to sale a home in the Dallas- Fort Worth area.

The sad fact is that many consumers are saddled with so much debt and fear of losing their jobs, many are very cautious about taking the plunge of homeownership. A lot of the previous boom in housing was fueled by homeowners "trading up" for newer homes; but many of those homeowners are now barely paying their debts and staving off foreclosure themselves. The biggest worry is that many of these homes sitting on the market for 80 days or more will end up in foreclosure. Most people who don’t need to sell their home are waiting out the crisis. But many of those trying to sell homes now are doing it because they can’t afford the debt and need to sell their home. Many homeowners are nearly drowning in debt, experiencing a job loss or trying to avoid foreclosure. Unfortunately, these numbers will most likely get worst.

If you’re considering bankruptcy; but are expecting or receiving monetary awards due to a personal injury case make sure your Dallas-Fort Worth bankruptcy attorney is aware of your rights under the new bankruptcy laws.

There are provisions in the bankruptcy law that will prevent creditors from seizing up to $20,200 in proceeds that you receive from a personal injury claim excluding pain and suffering or actual out-of-pocket losses. But that’s not all; the bankruptcy law will also allow the debtor filing for bankruptcy to exempt disability, illness and unemployment benefits with no limit on the amount of money the debtor can receive. In addition, the bankruptcy law will exempt wrongful death payments and "loss of future earnings" up to the extent that it is needed to pay for the living expenses of the debtor and the debtor’s family. Is that enough? Well, if not, don’t forget the $11,200 “wild card” exemption which can be used to cover any award amount not covered by the other exemptions when filing for bankruptcy.

U.S. District Judge Thomas Porteous, a Louisiana jurist, is charged with filing for bankruptcy under a false name along with other misdeeds. Judge Porteous faces impeachment for filing a personal bankruptcy petition for himself and his wife under a false name in 2001, filing false statements under oath during the bankruptcy proceedings and giving money and gifts to attorneys in trials where he acted as the judge.

"I strongly believe that the committee is doing the right thing," said the panel’s ranking Republican, Lamar Smith of Texas. "The alleged corruption of a federal judge, who is appointed for life, is especially egregious."