The U.S. Supreme Court has agreed to hear a challenge to the law that argues it violates the First Amendment.

Robert J. Milavetz, a 73-year-old Minnesota lawyer, says that the provisions of the law that forbid an attorney from advising a client to incur new debt before filing bankruptcy effectively prevents attorneys from recommending that a client buy a car so that they can get to and from work or refinance a home to pay down credit card debt.

Many constitutional experts agree that the part of the law restricting the type of advice an attorney can give a client is probably in violation of the constitution. Since it is unehtical for an attorney to advise a client to break the law, they shouldn’t be telling clients to abuse the bankruptcy system in the first place.

It will be interesting to see what action the court takes on the matter.

Addison-based Foreclosure Listing Service (FLS) says that lenders reposting homes that had been previously posted but not sold at auction.

Postings are up over 60 percent in Tarrant, Collin and Denton counties over last July’s number. Dallas County’s number grew at just 56 percent, according to FLS.

Homeowners facing foreclosure have some options that can stop the sale at auction. Filing Chapter 13 bankruptcy stops proceedings on a foreclosure and can allow homeowners to repay back payments over a 3 to 5 year period.

Bankruptcy protections can clear your unsecured debt and help you to stop foreclosure on your home. If you are having financial difficultuies, contact us for a free consultation. We will review your situation and explain the benefits of Chapter 7 or Chapter 13 bankruptcy.

The study also says that over 75 percent of those who filed for bankruptcy because of medical bills had health insurance when they became ill.

One of the author’s of the report, Associate Professor of Medicine at Harvard University Dr. Steffie Woolhandler, said that large co-pays, prescription drug costs and high deductibles were among the factors that contributed to driving those with health insurance into bankruptcy court.

The study reiterates what most bankruptcy experts have been saying for years. Most American families are one medical crisis away from bankruptcy.

Now auto-parts supplier Visteon has filed for Chapter 11 bankruptcy in a Delaware court, just one month after its British unit filed a separate case in Great Britain and closed three plants. 

That isn’t all that suprising considering the dramatic fall in car sales. One suprise is the fashion house Christian Lecroix is seeking bankruptcy protection in French court. 

It makes me wonder if the financial problems that the people who work for these companies is getting the same attention that the businesses get. How many of their employees will have to file bankruptcy after they lose their jobs or health insurance? How many retirees will have to file bankruptcy to protect their homes from creditors after their pension benefits take a hit?

The nomination has been called a reward for Latino activists who have long sought a Latino justice on the high court. It is also likely to draw opposition from Republican groups who have called her a “liberal judicial activist” who “thinks judges should dictate policy”.

If confirmed, Judge Sotomayor would be the first Latina to serve on the U.S. Supreme Court and only the third woman.

Dallas area based BC Credit Solutions allegedly told clients that they would have to pay off full balances and interest in a Chapter 13 bankruptcy. Provisions of the U.S. Bankruptcy Code allows the amount of money owed to unsecured creditors to be reduced. 

LH Financial Service, also based in the Dallas area, allegedly told clients that they would lose their home, investment accounts and other large assets in bankruptcy. Exempt property in the state of Texas includes the homestead and up to $1 million in retirement savings.

Louisville, Kentucky based DebtORSolution allegedly claimed that filing a Chapter 7 bankruptcy would result in an auction of all your property, when in practice federal and state bankruptcy exemptions allow the debtor to keep most of thier property.

Scottsdale, Arizona based Four Peaks Financial Services allegedly told customers that their debt settlement program “allows your credit score to dramatically improve,” when in fact it can have a negative impact on a debtors’ credit rating.

I encourage you to do some research and find a bankruptcy attorney that is attentive to your needs. Look online for information about bankruptcy. One good resource is BankruptcyHome.com. 

A professional, qualified Fort Worth bankrutpcy attorney will not judge you for your past behavior. A Fort Worth bankruptcy lawyer will help you use the protections afforded to you under bankruptcy law to protect your assets for you and your family.

Getting out of debt isn’t easy, but with the help of a good Fort Worth bankruptcy attorney you can find a way to get out of debt and even protect your home from foreclosure.