Foreclosure crisis hits areas of North Texas harder
June 19, 2008
The news abounds with stories on the foreclosure crisis. Between May 2007 and 2008, foreclosures have risen 48%. Texas remains steady at #17 in the nation for foreclosures. Though this may seem encouraging to some, for the thousands of North Texans, the threat of foreclosure is an immediate concern. Economists have yet to see the end of the foreclosure spiral.
In 2008, 29,000 of the 32,000 Texas foreclosures were in the 10 county area surrounding Dallas/Fort Worth. In July 2008, Dallas County showed a decrease by 4% in foreclosures, while Tarrant County reported a 3% increase from June 2008. However, in looking at the overall year, foreclosures are up 22% in Dallas County and 38% in Tarrant County. This places Tarrant County as one of the 7 out of 10 counties in the North Texas area showing a 25% or more year-to-date rise in foreclosures. Other counties include Rockwall, Denton, and Kaufman.
Foreclosure doesn’t have to happen. Bankruptcy can save homes from foreclosure. By filing bankruptcy, foreclosure proceedings are immediately halted where they are by Automatic Stay Protection.
Under Chapter 7 bankruptcy, Automatic Stay protection is temporary until your case is discharged, but if you’re able to keep current on the mortgage with discharge, you can keep your house. However, it also gives you the time to decide if you should keep the house or sell. Under Chapter 13 bankruptcy, Automatic Stay protection runs the length of the repayment plan. It can help you catch up and keep the equity in your home.
You don’t have to face foreclosure alone. Bankruptcy is an economic decision. You have options. The experienced bankruptcy lawyers at Higgins and Associates have helped thousands of North Texans stop foreclosure and file their bankruptcy cases. You don’t have to lose your home. Let the Higgins and Associates bankruptcy attorneys evaluate your case for free.
Living Wills and Power of Attorney
March 27, 2008
Most people have worried about what would happen if they became seriously ill and were unable to deal with your own matters. Who would handle these important matters? The financial matters? The medical decisions? Preparing a few simple documents can put to rest all of these concerns. Having a Living Will, a Durable Power of Attorney, and Medical Durable Power of Attorney, in addition to a Will, combine to form a powerful set of documents that protect and provide for the future. Below is a brief description of each. If you would like for Robert A. Higgins & Associates, P.C. to draft these documents for you and your family, please contact us at mitchell@higginsandassociates.com.
Living Will
This is a legal document in which you state what medical treatment you want offered and what you want withheld. It is called a Living Will because it takes effect while you are still living. In the event you should suffer an irreversible coma or face “imminent death” from a terminal illness, the Living Will allows you to speak now, in preparation for a time when you will be unable to speak for yourself. This, when done with a Medical Durable Power of Attorney, will ensure that your “best interests” are carried out.
Durable Power of Attorney
A Durable Power of Attorney is a document that when properly executed will allow an agent to act on your behalf. A Durable Power of Attorney for finances is a simple and reliable way to arrange for someone that you trust to make your financial decisions should you become unable to do so yourself. It’s also an essential thing to do for your family and loved ones. If you become incapacitated, the Durable Power of Attorney will likely seem like a brilliant idea to your loved ones.
If you do not have a Durable Power of Attorney, a court proceeding will be required to give your loved ones authority over your financial affairs. This can be an expensive and public process. Many married couples think that they do not need such a document because everything is in both names. The truth is that your spouse has limits on his/her ability to deal with affairs, particularly on the selling of property owned by both of you.
Medical Durable Power of Attorney or Healthcare Proxy
This document allows you to appoint someone to ensure that health care providers give you the medical care you want and withhold the care you do not want. This document is a signed, dated and witnessed document authorizing another person to make your medical decisions if you are incapacitated and unable to do so yourself.
Will
When someone dies, someone has to take care of all pending matters, such paying bills and making final arrangements. A will not only handles these matters, but also allows you to distribute your assets and personal belongings to whomever you choose.
Without a properly executed Will, state law will determine what happens to your assets as well as who will care for your children.
Please contact us to begin the process of creating you a Will that will serve your current and future needs.
Co-Debtor: Understand Their Role in Your Bankruptcy
March 25, 2008
When an individual files for bankruptcy they may have obtained a loan with a friend, spouse or family member. By doing this, they are on the loan together and enjoy the same benefits of the loan if timely paid as well as the same liabilities if the loan is defaulted.In Bankruptcy, if an individual is on a loan with another person that has not filed bankruptcy; the non-filing person obtains the same benefits of the protection of the bankruptcy case as the individual that did file from that particular creditor.
After someone files for bankruptcy the protection from creditors is automatically put into place. This protection prevents any creditors from collecting or taking any action to secure their interest on a loan against the bankruptcy filer.
At the same time, this protection is extended to a non-bankruptcy filer as well. This is a very generous benefit that a co-signor has even when they have not filed for bankruptcy. However, this benefit is not as far reaching as it may seem.
When a person files for bankruptcy they are generally trying to either reorganize their debts by making a monthly payment under Chapter 13 to keep a house or car, or they are seeking a completed discharge of their debts subject to the liquidation of their assets under Chapter 7.
In either case, if the individual that filed for bankruptcy cosigned a loan with another party that has not filed for bankruptcy, both will be protected from any collection efforts. However, if the individual that filed for bankruptcy decides to return the item back to the creditor or defaults on the loan while in bankruptcy that the non-filer cosigned a loan for, then the non-filer is no longer protected and the creditor can start making collection attempts against the non-filer.
Unfortunately, the non-filer will be on the hook unless he or she files a bankruptcy themselves, whereas the filing party receives the benefit of a complete discharge of the debt if they defaulted on the loan.
The co-debtor stay is most common for people who are married and only one spouse files for bankruptcy. In Texas, it is a community property estate; therefore, it is also a community debt state. Meaning, that a couple that incurs debt together during the marriage, regardless if the debt is only in the name of one spouse, the creditor may look to both of them for the debt because the presumption is they both received the use and enjoyment of the item or items purchased.
If one spouse files for bankruptcy and the other does not, the non-filing spouse will be protected from all creditors as long as the bankruptcy case continues. However, any debts that a creditor can prove are community debts remain against the non-filing spouse after the case is concluded. Therefore, it is almost always advisable, if married, to file a joint bankruptcy case.
The underlying principal is that the law in bankruptcy is set up to protect individuals and their property from any collection activities, even those individuals that did not file but are a co-signor or guarantor of a loan that is in bankruptcy.
However, the protection is only available for a period of time until the creditor decides to file a motion in the bankruptcy court or until the bankruptcy case is completed.
I Want Out! What Happens When Your Bankruptcy Case is Dismissed
March 25, 2008
Filing a bankruptcy case is the last thing most people ever consider or even want to do. However, there are times when it is the last chance that people may have to get financial relief from their creditors, save their car, or save their home. Once an individual files a bankruptcy case, they may find that the process is more grueling than anticipated or circumstances arise that may cause them to have a change of heart. Therefore, this may lead people to want out of their bankruptcy cases. However, getting into a bankruptcy is a lot easier than getting out.
When you file a bankruptcy case it automatically is reported to the credit bureaus and may remain on your credit report for a period of ten (10) years. Like a foreclosure or car repossession, this can have a damaging effect financially if you try to secure a loan or get financing. Therefore, it is important when you file a bankruptcy case that you are prepared to see it through and get the relief that is available. But, what happens if you can’t continue any further in the bankruptcy and the case either gets dismissed or you opt to have it voluntarily dismissed?
In many instances, a bankruptcy case is not voluntarily dismissed by the individual that filed the case. Many times, as in a Chapter 13 case, the case is either dismissed for failure to make payments to the Chapter 13 Trustee to reorganize debt or for not filing or providing the necessary paperwork needed to comply with the case. In a Chapter 7 case, cases rarely, if ever, get dismissed, and only do so when an individual has completely disregarded filing their documents or attending the mandatory Meeting of Creditors. If a case is dismissed under these circumstances, an individual has the ability to re-file their bankruptcy case to get the protection that they needed, but with limitations. One such limitation is when an individual fails to provide a reasonable explanation for failing to comply with the requirements, and then the individual is barred from re-filing a case for at least 180 days or six (6) months.
There are times though when an individual wants their case voluntarily dismissed. Many times this is because the individual cannot get the relief through the bankruptcy that they could if they were outside of a bankruptcy filing. An example of this is if someone is trying to work out an arrangement with their mortgage company or car creditor and the lender will not help them while they are in a bankruptcy case. Therefore, the individual opts out of the bankruptcy case by filing a Motion to Voluntarily Dismiss case. If an individual is in a Chapter 13 case and they file the above motion, they can look to re-file a case within the six (6) month time period as long as they show the need to be out of the present bankruptcy case. This may allow someone to both get their affairs resolved with the lender outside of the bankruptcy case and then re-file in the immediate future to receive protection from their other creditors they originally were protected from.
However, it becomes an issue when an individual wants their case dismissed solely to protect assets that may be administered through their bankruptcy, such as equity in a second home, a lawsuit settlement, lottery winnings, or an inheritance. If an individual tries to file a Motion to Voluntarily Dismiss their case in this type of circumstance, more than likely, the Trustee assigned to their case will almost always object to the Motion filed if the creditors have not already, because the individual is putting their creditors at risk of non-payment. An example of this is when a client receives an inheritance and opts to have the case dismissed because he knows a majority of the inheritance cannot be protected while in bankruptcy and would be subject to having to be paid to his creditors scheduled in the case. If an objection is filed, the individual will have an opportunity to explain why being outside of the bankruptcy will be in his or her best interest, at the same time, why his or her creditors will not be harmed by having the case dismissed. If the individual is successful in his or her Motion, then the case will be dismissed, but the individual will be barred from re-filing a bankruptcy case for at least six (6) months.
Although people do not file bankruptcies with the intent to have their case dismissed, things can arise during bankruptcy cases that are unforeseen. However, the law is not only set up to protect the individual that is filing the bankruptcy, but also the creditors subject to the bankruptcy filing. Therefore, it is always important to understand the circumstances of every action while in a case to be better prepared for the unknown.
