While Texas’ economy is in better shape than other states and the nation as a whole, it still sits at a high 8.4 percent, according to the U.S. Bureau of Labor Statistics.

Therefore, many people are job hunting, looking for ways to get by as bills pile up. Many people have been slapped with a foreclosure proceeding as banks try to take away their homes if they miss or get behind on a monthly mortgage payment. For those who seek to keep their homes or other large assets, Chapter 13 bankruptcy in the Dallas area has proven to be a more popular choice as of late, statistics show.

Hiring an experienced and dedicated Dallas bankruptcy lawyer is critical in this stage of your life as the stress of finances is making day-to-day difficult. With creditors hounding, lenders calling and credit tight, considering a form of bankruptcy that works best for you is the best option.

According to statistics from the United States Bankruptcy Court for the Northern District of Texas, more people in Fort Worth filed for bankruptcy than in Dallas for the first time since November. But the more noteworthy information gleaned from the statistics is that more people are filing for Chapter 13 bankruptcy protection than Chapter 7.

Chapter 7 bankruptcy is the more popular form of bankruptcy and the one that most people are familiar with. This is where, if the person qualifies, they are allowed to discharge their debts, sometimes by having to sell off some assets and sometimes not. After the process is finished, the consumer has those debts forgiven and they can move on with life without those debts dragging them down.

Chapter 13 bankruptcy in Dallas is slightly different, however. Under this chapter, a consumer sets up a payment plan with the court that usually lasts between three and five years. After the payments have been successfully completed, the debt is forgiven. So, while this chapter requires a bit more money to be paid, it’s designed for people who have larger assets, such as houses and cars, yet have debt that has overwhelmed them.

The big benefit of Chapter 13 is that once the payments have ended, the debt is discharged and the consumer can keep their large assets, rather than risk losing them. According to the court, 873 people filed for Chapter 13 in August, compared to 741 who filed Chapter 7. While the months at the end of 2010 and beginning of 2011 showed a greater disparity between Chapter 13 and Chapter 7 filers, more people in the Metroplex had chosen Chapter 7 for the last three straight months.

The numbers may indicate that the middle class has come more to rely on Chapter 13 bankruptcy now than in the past as they try to figure out how to pay their mounting bills, while battling unemployment, unexpected medical bills or predatory lending practices.

Whatever the chapter, bankruptcy can help. But this is a complex area of law that must be trusted to the professionals. If you are stuck in a situation where you’re getting behind on bills or mortgage payments and don’t see a way out, consult with an experienced Dallas bankruptcy lawyer today.

If you need to speak with a bankruptcy lawyer in Dallas contact the Bankruptcy Law Firm of Warren & Migliaccio L.L.P at 972-205-9750.

Divorce can be a difficult time in a person’s life because their relationship has crumbled, the children’s future is in question and it’s likely that finances are going to become an issue. A new study finds that parents are falling behind on paying for the kids’ college fund, and that’s even without going through a divorce in Dallas or elsewhere.

An experienced Dallas Divorce Lawyer will not only consider the many child-related issues that come up during a split, but also the long-term financial issues that must be addressed. That includes division of property, including large-scale assets, such as a house, investments, retirement accounts and other assets of value. But post-divorce taxes, debts and other financial-based decisions must also be taken into consideration.

And among those issues are making sure the children’s higher education funds are considered. According to a new study by Fidelity Investments, 67 percent of parents surveyed have begun putting away money for college. That’s great news, but the study also found that pressure from the stalling economy and the high cost of college means that those savings will only cover, on average, about 16 percent of college costs in the future.

While the number of parents saving for college has increased 9 percent from a 2007 survey, the company found that during that survey four years ago, the average American family would be able to pay for about 24 percent of college tuition costs. That’s a big drop.

More than half of the parents who were surveyed who have kids 5 and younger are still paying for their own student loans and don’t want their kids to be saddled with that debt after they graduate. Yet about half are paying about $576 per month in day care or preschool costs. Forty percent are paying that monthly cost on top of storing money away for college.

Parents now also believe that they are responsible for funding their children’s college bills and many are going back to work or trying to get extra work to make the payments. But they are encouraging their kids to look at public universities and live at home to save on housing costs.

This whole issue gets complicated when a divorce in Dallas is in the works. As our Dallas Divorce Lawyers Blog previously reported, children of divorce typically receive less financial aid from their parents.

Finances of the parents become restricted as they are trying to live in separate homes, obtain loans for a car that may have previously been shared and learning to live a new life. Making child support payments in a Dallas divorce or perhaps having to pay alimony can add to the stress involved in a divorce. Parents want the best for their children, but sometimes a divorce can make certain financial obligations — even saving for college — a luxury.

An experienced Dallas Divorce Lawyer will work to lessen the financial impact a divorce has on the client. That means working to avoid post-divorce taxes and common financial traps that can hinder the future.

If you need to speak with a divorce lawyer in Dallas contact the Family Law Firm of Warren & Migliaccio L.L.P at 972-205-9750.

More Blog Entries:

Study Finds That Children of Dallas Divorces Receive Less Financial Aid: June 5, 2011

Additional Resources:

Parents falling behind on saving for kids’ college, by Jessica Mintz, MSNBC.com

Good news may be on the horizon for recent graduates in Dallas if a new measure in Washington D.C. gains strength and becomes law.

If passed, it would allow those carrying the burden of expensive student loans without the ability to pay them back because of the depressed economy to have the debt wiped clean as part of a Dallas bankruptcy proceeding, according to U.S. News & World Report.

Dallas Bankruptcy Lawyers applaud lawmakers for their efforts in helping those who have overwhelming student loan bills. In 2005, lawmakers exempted most student loan debt from bankruptcy protection.

Seven Democratic lawmakers — three senators and four representatives — introduced parallel measures that are being considered in each chamber of Congress. Both bills would restore the ability to discharge commercial student loans in bankruptcy proceedings.

“Before changes were made to the bankruptcy code in 2005, only government issued or guaranteed student loans were protected during bankruptcy,” said Sen. Dick Durbin, D-Ill. in a press release. “This protection has been in place since 1978 and was intended to safeguard federal investments in higher education. Today’s bill would restore the bankruptcy law, as it pertains to private student loans, to the language that was in place before 2005, so that privately issued student loans will once again be dischargeable in bankruptcy.”

Both bills have received backing from 35 organizations, including the American Federation of Teachers.

And the measures come at a good time. According to the John J. Heldrich Center for Workforce Development at Rutgers University, a staggering 56 percent of 2010 graduates were able to find work, a study by the center found. That’s down significantly from graduates in 2008 and 2009. The Great Recession has left many students without work, yet carrying expensive loans.

The Project on Student Debt found that the average 2009 graduate is carrying $24,000 of debt. According to 2008 data from the U.S. Department of Education, Texas had a high rate of defaulted loans compared to the rest of the nation at 9.1 percent. Only Puerto Rico (12.4%), Arizona (10.9%), Guam (10.3%), Arkansas (10.1%), Iowa (9.9%), Kentucky (9.6%) and Colorado (9.2%) had higher rates. Nevada students also defaulted on 9.1 percent of loans.

Bankruptcy in Dallas can be an option for those who aren’t able to pay back debt because of the poor economy. Bankruptcy laws are designed to help the consumer who cannot pay back debt. The process takes effort, but can be rewarding for those who get a fresh start after completing the bankruptcy process.

Consulting with an experienced Dallas Bankruptcy Lawyer should be the first step for those who are using credit cards to get by or who are struggling to pay bills on time. Call today to get an assessment of your situation.

If you need to speak to a bankruptcy lawyer in Dallas contact the Law Firm of Warren & Migliaccio L.L.P at 972-205-9750

More Blog Entries:

Bankruptcy Filings in Texas up 35 Percent; Dallas Bankruptcy Attorneys Here to Help: June 13, 2011

Survive Dallas Bankruptcy With These Five Tips: June 10, 2011

Many in Texas believe that filing bankruptcy makes you a failure at your finances or, worse, will cast you in a state of credit disrepair for a decade or more. This is simply not the case. Filing bankruptcy can actually allow you to seize control of your finances and secure your long-term financial well-being. Thanks to the predatory lending practices of banks and credit card companies, as well as the unprecedented economic downturn, consumers in Dallas and elsewhere continue to file bankruptcy in record numbers.

Some tips from walletpop.com will help those who first consult with Dallas Bankruptcy Lawyers about how to best proceed.

With the downturn in the economy forcing so many families to struggle financially, bankruptcy is often the best decision they can make. The laws were designed to help people file for bankruptcy in Dallas and elsewhere so they can help their finances get back on track. Taking hold of your financial future is smarter than attempting to get by with paying the minimum on your credit card each month, hoping to find a job or catch up, all while fending off annoying creditors.

While the decision shouldn’t be taken lightly, it has become a popular choice for the many Americans struggling to get by. In the first quarter of 2011, 353,082 people filed for bankruptcy in the United States, according to the American Bankruptcy Institute. In 2010, 54,130 Texans filed for bankruptcy, which was up from 50,868 in 2009.

Filing for Chapter 13 bankruptcy in Dallas, for instance, will immediately stop the foreclosure process on your home and allow you to keep your home and other large assets after setting up a reasonable payment plan over a 3-5 year period. This often works out well for those who don’t qualify for Chapter 7 bankruptcy because they make too much money in relation to their debt.

The point is, consult with an experienced Dallas Bankruptcy Lawyer and make the right decision based on your situation. Bankruptcy can be daunting, but it can also be very liberating. On to the tips:

Let go of guilt and shame: Don’t beat yourself up over making this decision. It’s rational and can help save you a lot of frustration. Don’t feel like a failure or a disappointment. The No. 1 cause for bankruptcy is unexpected medical bills.

Reflect and Regroup: Use a network of friends and family to help you get through the bankruptcy process.

Create a budget: Many people have to file bankruptcy because of overspending, so create a budget, with an emergency fund and work toward future financial freedom.

Pick a credit card that will help rebuilt credit: After bankruptcy, you may get flooded with credit card offers. Pick wisely. Some secured credit cards allow you to deposit money and make that your credit limit.

Know the facts about bankruptcy: Many people believe you won’t get credit after bankruptcy, but it’s not true. Many people can get car, home and credit-card loans shortly after the process is over. Don’t think you’ll be stuck without credit forever. The purpose of bankruptcy is to help you get back on your feet financially.

If you need to speak to a bankruptcy lawyer in Dallas contact the Family Law Firm of Warren & Migliaccio L.L.P at 972-205-9750

According to a recent Wall Street Journal MarketWatch article, statistics show that Americans have become more diligent about eliminating debt and increasing savings. It’s the opposite direction the federal government is going, as the fed has increased its debt from $1 trillion to $14.3 trillion from the 1980s to the 2000s.

Dallas Bankruptcy Attorneys offer consumers legal services and counseling regarding bankruptcy, foreclosure and other serious financial issues. If you have been trying valiantly to consolidate your mounting debt, whether because of overspending on credit cards, unexpected medical bills or a job loss, contact our firm. Debt can cause you problems at home, at work and in the community and we can help you use bankruptcy laws to your benefit.

The MarketWatch article suggests that everyday people can learn from what the government has done in recent years. Officials are now looking into whether they will increase the nation’s debt ceiling.

Consider the average person’s debt ceiling now. With a person bringing in $50,000 or less with $8,000 in credit card debt, the ratio of what he owes compared to what he earns is about 30 percent. As that rises, only last-resort lenders will be willing to give him loans. As the ratio increases, the likelihood of bankruptcy and foreclosure increases.

And sometimes that’s when debt consolidation companies come into play.  Garland bankruptcy lawyers advise clients to be wary of these types of services. For one, the cost can end up being as expensive over time as hiring an experienced and qualified DFW bankruptcy attorney.

Another thing to consider is that these aren’t necessarily qualified advisers. They are paid by companies that seek people who are struggling with money problems and offer lofty promises of how all the financial issues will disappear. Offering to try to modify your home loan and consolidating all your debt seem like great things, but they’re not necessarily always possible.

Meanwhile, bankruptcy can offer many benefits:

• Stopping home foreclosure
• Halting car repossession
• Debt settlement
• Help for your credit rating in the future

Don’t assume bankruptcy will be bad for your future. And don’t feel like you’re alone. In 2010, more than 54,000 Texans filed for bankruptcy, up from about 40,000 in 2007, according to the American Bankruptcy Institute.

If you need to speak to a bankruptcy lawyer in Dallas contact the Family Law Firm of Warren & Migliaccio L.L.P at 972-205-9750