The Woodlands Bankruptcy Law Blog

The economic recession has created a lot of talk about some families filing for bankruptcy, and others losing their homes. Filing for bankruptcy, losing your home or both, is a nerve-wracking thought for those with financial difficulties. Of course, this is a problem that is not limited to Texas. Those who are considering bankruptcy, particularly Chapter 7, may be interested to know how a bankruptcy can affect their home ownership.

Undoubtedly, a definite way to lose ownership of your home is through foreclosure, should you stop making mortgage payments. On the other hand, those filing for Chapter 7 bankruptcy could lose their home as a part of the process. If your home "has more equity than you can protect," then you risk losing your home in the event of filing bankruptcy. In order to pay off some of your debt, the trustee assigned to your bankruptcy case might decide to sell your property.

The White House announced yesterday that it will expand the Home Affordable Modification Program through 2013. The government will increase the incentives for banks to write down the principal mortgage amounts for homeowners who are at risk for losing their homes in foreclosure due to heavy debts. These incentives will also be offered to the government-run Fannie Mae and Freddie Mac.

"While government can't fix the problem on its own, responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief," President Obama said during a recent speech.

Sometimes, debt can get out of hand. Many people don't know where to turn. They try working out a budget, but the creditors just keep calling. Chapter 7 bankruptcy can help a person stop creditor harassment and has been helping many people start over in midst of the recent financial crisis.

New numbers are suggesting that 2011 saw a drop in the number of personal bankruptcy filings, but experts warn that an increase in the last two months of the year could mean a new wave of bankruptcy filings is coming in the new year.

Minor league baseball is a big deal for many Texas residents. Some of these fans might be surprised to hear that Fort Worth Cats owner Carl Bell is facing the possibility of foreclosure on the team's stadium as loan workout plans seem to have stalled. Unless something changes, the bank holding the loan has posted the stadium, and several acres around it, for a January auction.

Bell said the team would likely be playing at LaGrave Field for at least a decade in 2010. He made these remarks because he had negotiated a loan modification with Amegy Bank. The loan modification involved the stadium, the land it sits on and some adjacent property. It is estimated that the overall size of the property in question is just shy of 13 acres. That loan is now in default.