According to an article in the Dallas Morning News, the Texas unemployment compensation fund is out of money and relying on loans from the federal government to survive. New taxation for businesses is probably the only way to get out of the red; but officials are hesitant to hit businesses with higher taxes during this recession.

The article said:

“No decision has been made, but …

Tags: Insolvency Recession Texas Unemployment benefits

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… life without a modern bankruptcy system has proven disastrous.

“The lack of a modern insolvency legislation caused untold damage to our economy. Mere liquidity problems nearly spelled the death knell for businesses. Our vintage 1909 Insolvency Law was simply not responsive to the 21st century needs of our financially distressed companies. It did not have Chapter 11-like provisions that could have resuscitated them back to life. In the process, many of our companies have suffered …

… because they had sufficient knowledge to place them on inquiry notice of the debtor’s possible insolvency. Because they were not good-faith transferees, Section 550 said they were not entitled to a lien in the amount of the refinanced debt.

It is very possible that these parents were not fully aware of their son’s financial problems; but these types of transfers can create huge problems for everyone involved. Sometimes when a debtor is facing financial troubles he/she will engage in …

… less than 60 days to move and/or will not receive his/her security deposit because of the landlord insolvency. Renters facing foreclosure are extremely vulnerable because they often have little savings and no assets they can liquidate in case of the need to move. Because of this, a renter facing foreclosure can be financially devastated by a forced move and that’s why this legislation may help.

Below is more information about the proposed legislation:

House Bill 421 by Rep. Dawnna …