As one might expect given the economic climate, bankruptcies are plentiful these days. The 149,268 consumer bankruptcies filed in March represented the highest monthly consumer filing total since Congress amended  the Bankruptcy Code in 2005, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC).

The March filing total represented a 23 percent increase from the March 2009 filing total of 121,413 and a 34 percent increase from the February total of 111,693. Chapter 13 filings constituted 25 percent of all consumer cases in March, representing a nearly 3 percent decrease from February. With almost 150,000 filings per month, that is an annual rate of almost 1,800,000 bankruptcies per year. That is a stunningly high number of bankruptcies. ■

Having Trouble With House Payments? PRESIDENT Obama Announces Changes to “Making Home Affordable”Program

Have you received an invitation from your mortgage company to modify your loan through the Making Home Affordable (HAMP) program? If you haven’t, and you need help, these new changes may help.

 

These changes will provide temporary mortgage assistance to some unemployed homeowners, encourage mortgage companies, i.e. "servicers" to write-down mortgage debt as part of a HAMP modification, allow more borrowers to qualify for modification through HAMP, and help borrowers move to more affordable housing when modification is not possible. The changes will be implemented in the coming months.

 

Unemployed borrowers meeting eligibility criteria will have an opportunity to have their mortgage payments temporarily reduced to an affordable level for a minimum of 3 months, and up to six months for some borrowers, while they look for a new job. If homeowners don't find a job before the temporary assistance period is over or if they find a job with a reduced income, they will be evaluated for a permanent HAMP modification or may be eligible for HAMP's alternatives to foreclosure program.

 

Other program enhancements are designed to help more borrowers complete a HAMP modification. Borrower outreach and communications rules will be clarified and strengthened to protect responsible borrowers from unnecessary and costly foreclosure actions and to expand modification opportunities for borrowers in bankruptcy.

For borrowers who continue to struggle and are unable to complete a modification, these program enhancements will help homeowners move to more affordable housing. Relocation assistance payments to borrowers who use the foreclosure alternatives program will be doubled (you may be paid up to $3000 to move) and incentives will be increased for servicers and lenders to raise participation. For more information contact your servicer or go to www.makinghomeaffordable.gov. ■

IMPORTANT NOTICE FOR  CHAPTER 13 CLIENTS!

 

If your case was filed on or after Oct. 17, 2005, and you are nearing the end of your plan, and you are paying your house payment through the Trustee, watch out! Call the Trustee office and make sure which month you must start making the regular payments yourself again! So-call “conduit” or Trustee-pay house payments started in October 2005, and we are just now seeing clients have problems, if for some reason they fell a payment or two behind during their case.

 

The Chapter 13 Trustee is under a court order (the Confirmation Order in your case) to only pay 60 months of house payments. If it takes you 61 or 62 months (or 63, or 64…) to finish your plan payments to your other creditors, then you must pay the regular house payments, starting on the 61^st month! If not, you will be delinquent on your house payments when you emerge from Chapter 13. If you have questions, call the office and talk to Mr. Black or Rob Heinly.

 

Also, if your case was filed on or after Oct. 17, 2005, be sure you have taken the “second” required online course, the debtor education course. Otherwise you will not be eligible for a discharge, and the court will close your case without a discharge (without a forgiveness of your remaining debts). Don’t let that happen; if you call the office, we will instruct you how to complete the second course. Ask for Daisy, Stephanie Roman or Rob Heinly.

QUOTES-

Failure is only a temporary change in direction to set you straight for your next success.
--Denis Waitley

SAVE $$$$$

ClaimItTexas.org - The Official State of Texas Unclaimed Property WebSite

One in four Texans has unclaimed property from forgotten bank accounts, uncashed checks, security deposits and utility refunds. It’s your money, and the State of Texas wants you to get it back!

Texas is currently holding more than $2 billion in cash and other valuables waiting for the rightful owners to claim. It’s never too late to make a claim. Find out what you may have been missing by searching the unclaimed property database at www.ClaimItTexas.org. ■

A little humor -

Lawyers-

The judge was finishing his oral charge to a jury. Being a judge who keeps up with the times, he pointed out in the verdict form where the "foreperson" should sign the verdict.

When the verdict was delivered later to the courtroom deputy, four persons had signed their names to the form.

He now uses the old-fashioned word "foreman."

Are bill collectors threatening to take your home or garnish your wages? Are they threatening to do anything else that they are not allowed to by law?

 

Is your mortgage company charging you fees and costs that are not due? Are you just overwhelmed with debt? Are you facing a foreclosure or repossession? I.R.S. threatening to levy your wages or other property? If any of these situations describes you, contact Mr. Black at 713-772-8037 or send him an email at tom@jthomasblack.com . ■

ARE YOU IN CHAPTER 13 NOW? Always keep the law office updated with your current address, telephone numbers, and email address. We may need to reach you quickly. 24 hours/7 days a week, you can check on the status of your Trustee payments, how much you still owe on your case, etc., by going to www.13datacenter.com to set up your user ID and password. Lose job or overtime? Expenses increase? Want to give up property to lower payments?

 

Go to www.jthomasblack.com , click on " Current Clients Click Here" on home page, and fill out the Motion to Modify worksheet. Fax to office at 713-772-5058. We’ll review it and contact you if a change to your plan is possible.

J. Thomas Black was licensed as an attorney in Texas by the Texas Supreme Court in May, 1982. Mr. Black is Board Certified in Consumer Bankruptcy law by the Texas Board of Legal Specialization.