2010 Bankruptcies and Foreclosures on the Rise – Why?
September 6, 2010
In the calender year ending in June of 2010, there was a significant increase in bankruptcies in Texas and nationwide. This increase is about 20 percent.
Why did this happen? Isn’t the economy improving? What if you have to file bankruptcy, will it be more difficult? And what can we all do to lessen bankruptcy rates?
About 1.1 million peopled filed bankruptcy in 2009, and over 1.5 million had filed since the calender year ending in June. That is a growing number of individuals who filed so far in 2010 in comparison to 2009, including tens of thousands of Texas residents. There is much debate on what is happening to our economy. The mortgage bust is clearly still a factor, because foreclosures are still a major problem.
In July 2010, over 11,000 foreclosures occurred in Texas. This may seem high, but it’s actually quite low. Bankruptcies and foreclosures are less common in Texas than other states. This is not to say the problem is occurring elsewhere, only that Texans are less likely to lose their home and be forced to file bankruptcy.
Compare Texas to Florida and you’ll see our point. Texas has foreclosures of about 1 in 800 home owners. Florida has about 1 foreclosure for every 170 homes. That is a big difference. Florida had over 50,000 foreclosures in July of 2010, much higher than Texas.
Is the economy that much different in Texas than in states like Florida?
The answers are not easy to find, but some commonsense comes into play. First and foremost, Florida has far more mortgage problems than Texas. This is because of the many new properties being built and sold. There were more people who filed bankruptcy and lost their homes to foreclosure in Florida because of the constant development and the housing values.
Is the economy getting better? Many might explain how growth is occurring. Jobs are being created, but the unemployment rate is still quite high, at about 10 percent. We’ll have definitive proof the economy is improving when bankruptcies, foreclosures, and unemployment rates lower. So far there is improvement in comparison to some of the worst years of the housing crisis, but other than that, not enough.
For Texas residents, bankruptcy is about making some choices. It depends on eligibility, first, but then you have to consider if bankruptcy is right for you. You only get to file so often, but you should not wait too long. Bankruptcy has many inherent advantages, namely discharging debts or protecting your home from foreclosure.
If you’re unemployed, worried you might lose your home, and are considering bankruptcy, it’s time to talk with some experts. An experienced Texas bankruptcy lawyer is invaluable. In hiring one, be sure you get one local, who has experience in court, charges a fair fee in comparison to others with experience, and who you can get along with.
The good news is that many lawyers offer a free consultation to help make your decision. Maybe more importantly, you don’t have to pay huge fees to get an experienced Texas bankruptcy lawyer. Prices for good bankruptcy lawyers are not high in comparison to other lawyers.
Are Bankruptcies On the Rise?
May 26, 2010
While job creation is growing exponentially as our economy rebuilds, bankruptcies are rising.
How is the job situation improving? Just in March of 2010, U.S. employers added well over 150,000 jobs. A recent Huffington Post report showed how not only were jobs on the rise, but also wages and salaries are improving. Also, people are now more confident that the economy is coming back. Still, the reasons for job creation are clear: for 2 years jobs were lost, and now businesses are rebuilding and needing workers to do grow.
With this new rush of growth in one of the most important parts of any economy,job creation, you might expect bankruptcies to finally be lowering. Unfortunately, this simply is not the case so far in 2010. In fact, just in March of 2010 over 150,000 bankruptcies were filed, more than in March of 2009. This is bad news, but it’s not surprising in that we have yet to effectively stop the problems consumers have had with things such as subprime mortgages and housing values lowering.
With new job creation, there may be more interest in Chapter 13 bankruptcy. With better salaries, many may not have the option of Chapter 7 bankruptcy. And with the problem we still have in housing, you may be able to cut your losses. That may be why so many are still filing bankruptcy, but medical bills should also be considered.
Medical fees have been, perhaps surprisingly, the biggest problem in terms of debt. A recent study pointed out how the majority of bankruptcies were not because of mortgages, but because of medical bills. The news is that this may change very soon with medical reform passed by the president and government.
What are your options for filing bankruptcy? For individuals, it’s no different today than last year. You can file under Chapter 7 or Chapter 13. If you are married, you have the options of individual or joint bankruptcy.
Chapter 7 bankruptcy is still the most common, even with new bankruptcy code stating how your income cannot be too high. Chapter 13 bankruptcy is more common than ever because of eligibility,and also for home owners who are not willing to lose their residence in exchange for discharging debts.
Joint bankruptcy is when you and your spouse file together, a very common occurrence. There are decisions to be made in joint bankruptcy: if all the debts are from one person, why not file individually?
Beyond filing bankruptcy, there are alternatives. You can try to handle the problems yourself. It can be daunting, but is possible.
If you’re unsure of your options, consider contacting a bankruptcy attorney for a consultation. You can ask many questions to an attorney before you even hire him or her. Also, if you’re worried about fees, filing bankruptcy itself is very cheap, and experienced attorneys are often willing to work with you on rates. Just don’t wait too long before taking action; it could cost you valuable time, money, and assets.
Justice Stevens To Retire
April 9, 2010
Justice John Paul Stevens, the oldest member of the U.S. Supreme Court, has made it official that he will step down at the end of the court’s term this summer. The announcement comes just 11 days before the justice will celebrate his 90th birthday and ends weeks of speculation that he was considering retirement.
Justice Stevens’ retirement will give President Barack Obama his second appointment to the high court.
Federal Judge Says Email Not Be Protected By 4th Amendment
October 29, 2009
A Federal judge in Oregon has ruled that the government doesn’t have to notify someone when they access and search a Web-based email account.
U.S. District Judge Michael W. Mosman writes in his opinion – “When a person uses the Internet, however, the user’s actions are no longer in his or her physical home; in fact he or she is not truly acting in private space at all. The user is generally accessing the Internet with a network account and computer storage owned by an ISP like Comcast or NetZero. All materials stored online, whether they are e-mails or remotely stored documents, are physically stored on servers owned by an ISP. When we send an e-mail or instant message from the comfort of our own homes to a friend across town the message travels from our computer to computers owned by a third party, the ISP, before being delivered to the intended recipient. Thus, ‘private’ information is actually being held by third-party private companies.”
Gives me a chill to think about all the client communications that many attorneys use email for these days. It also scares me to think that emails from your credit card companies, banks, even your grandmother could be read by the government without you knowing about it.
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Happy 222nd Birthday!
September 17, 2009
Some 222 years ago, leaders met and decided that the 13 colonies could create a more perfect union than the confederation they were operating under. Today we mark the 222nd anniversary of the signing of the Constitution of the United States.
- Image via Wikipedia
On September 17, 1787, the 55 men who had gathered in Philadelphia went back to their homes and began the campaign that ultimately culminated in its ratification and the addition of the first 10 amendments known as the “Bill of Rights”.
It took a great deal of arguing and compromise to get the delegates to agree to the document in its original form. Many things have changed in the United States since 1787, and with those changes have come more trials and arguments over the document and the meaning of the words in it. Changes have been made to continue on the path to create a more perfect union, and to correct injustices that were written into the document to secure its passage.
I hope that the citizens of this country can take this opportunity to read the document in its original form and consider the effort that went into creating the freedom and liberty we enjoy today. Interpretation of the meaning of the Constitution is subjective, and it has evolved, along with the values of the American people.
One thing is certain, the rule of law and the justice system that we enjoy today in the United States is due to the fact that we have followed and fought for the ideals enshrined into the Constitution. I am proud to live in a country where the rights of its people are held in high regard.
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Health Care Debate Far From Over
September 11, 2009
President Barack Obama’s speach delivered to a joint session of Congress Wednesday galvanized Democrats and Republicans in their positions on the health care debate. Members of both parties are still claiming the high ground in the discussions, either for idealogical reasons or moral reasons.
Whatever your position on health care reforms proposed by President Obama, recent data shows that here in Texas more children are getting health care benefits under the stat’s Childrens Health Insurance Program (CHIP). That data also shows that more than one quarter of Texans have no health insurance coverage.
Knowing that 62 percent of those who file for bankruptcy in the United States in 2007 had some medical debts included in the filing and that 80 percent of those had health insurance, makes me think that for reforms to have any impact on those who face bankruptcy after an illness they will have to include restrictions on out of pocket expenses for the insured. With the country’s ballooning deficiets, I don’t know that we can afford health care reform now. In the same breath, I am not sure we can afford to do nothing either.
Anyone out there with an opinion? Is health care a right or a privilege?
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Fromme Released From Federal Prison
August 14, 2009
Would-be assasin and former Manson Family member Lynette “Squeaky” Fromme was released from federal prison in today in Fort Worth.
A spokesperson for Federal Medical Center Carswell said that Fromme left the facility at about 8 a.m. this morning.
Fromme was serving a life sentence for attempting to assasinate President Gerald Ford in Sacramento, California in September 1975.
She was the first person sentenced under a federal law enacted to cover assaults on U.S. Presidents after the assasination of President John F. Kennedy in 1963.
Sotomayor Confirmed
August 6, 2009
The U.S. Senate confirmed Sonia Sotomayor to the U.S. Supreme Court in a 68 to 31 vote, meaning that a few Republicans supported President Barack Obama’s first nominee to the court.
As the 111th justice she is the third woman appointed and the first hispanic to ever sit on the panel.
The Senate’s lone Hispanic Democrat and head of the Democratic Senate Campaign Committee, Sen. Robert Menendez of New Jersey, hailed the nominee minutes befor the vote with this speech. ”History awaits, and so does an anxious Hispanic community in this country,” he said. ”When she places her hand on the Bible and takes the oath of office, the new portrait of the justices of the Supreme Court will clearly reflect who we are as a nation, what we stand for as a fair, just and hopeful people.”
Evander Holyfield Saves Atlanta Home From Foreclosure
July 23, 2009
I know that hearing about Evander Holyfield saving his home from foreclosure doesn’t do much to ease your financial worries. The truth is he saved his home by negotiating with the mortgage holder. The truth is he only delayed the foreclosure until August, and that is only if he can pay.
If you are facing foreclosure on your home, filing Chapter 13 bankruptcy in Fort Worth can stop the foreclosure proceedings. It will allow you to restructure your back payments and allow you to pay them off over a 3 to 5 year period.
There is no reason to lose your home. Contact a Fort Worth bankruptcy attorney to find out how to stop foreclosure on your home.
Insider Trading Charge Against Maverick’s Owner Tossed
July 17, 2009
CNBC is reporting that insider trading charges filed last year against Dallas Maverick’s owner Mark Cuban have been tossed out by U.S. District Judge Sidney A. Fitzwater.
The charges stemmed from Cuban’s sale of stock he owned in Mamma.com after having a conversation with the president of the company, who was requesting an additional investment.
Cuban’s attorneys successfully argued yesterday that an “insider” is someone with a pre-existing fiduciary responsiblity or existing relationship with the company, not just an investor.