Texas Bankruptcy Blog : Texas Bankruptcy Lawyer & Attorney : Fears Nachawati law Firm : Chapter 7, Chapter 13, Consumer Bankrutpcy : Dallas, Fort Worth, Austin, Houston, San Antonio

The Associated Press reported today that the Dow Jones industrials fell to an all time low – below 9000 – for the first time in five years.  According to the Associated Press . . .

“The Dow itself shed 678.91 points, closing at 8,579.19. . . . Wall Street had begun the day higher on news that the Bush administration is considering taking part ownership in a number of U.S. banks.  The aim of such a move would be to thaw the lending freeze that threatens to push the world's economy into recession. It comes after rampant fear about the global economy sent investors scurrying on Tuesday for safety in U.S. government securities despite an orchestrated round of rate cuts by the world's central banks.  The markets looked set to extend their six day rout another day, though, as they grappled with worries that tight lending would throw the global economy into a recession.  In an effort to show that governments around the world were focusing intently on ways to resolve the crisis, the administration announced that President Bush would meet with finance officials from the Group of Seven major industrial countries at the White House on Saturday . . . “

According to the Austin Business Journal, Lehman Brothers Holdings, Inc., the investment company that recently filed for Chapter 11 bankruptcy was a primary equity partner in a joint venture one year ago to buy most of Austin’s premier office space. Lehman Brothers put up 75 percent of the equity and provided debt financing on the deal. They purchased 10 properties totaling over 3.5 million square feet. Their purchases included the Frost Bank Tower, One Congress Plaza and 300 West Sixth – some of the most “coveted assets” in Austin. It is now predicted that as Lehman proceeds through bankruptcy it is likely that its Austin properties will come up for sale at a significant discount. Austin Business Journal states that, “. . . analysts and industry insiders have blamed Lehman’s demise partly on its position as the one-time biggest U.S. underwriter of commercial mortgage-backed securities.” Dan Fasulo, managing director of New York-based research group Real Capital Analytics Inc., states, “If there is a deal under the Lehman umbrella that may be in trouble, it’s the Austin deal” . . . “Everything has flipped upside down . . . If you had to sell such a portfolio now, you would probably have to sell at a significant discount.” Keep your eye on Austin’s premier office space to see what effect Lehman Brother’s bankruptcy will have on the local real estate economy.

Suddenly finding yourself unemployed can wreak havoc on your self-esteem not to mention wreaking havoc on your finances.  According to the Dallas Business Journal unemployment rates rose across the Dallas-Fort Worth Metroplex in August.   Ronny Congleton Commissioner of the Texas Workforce Commission said that, “although the Texas unemployment rate of 5 percent is below the U.S. rate of 6.1 percent, it is still a matter of concern.”   Not many people have enough savings to finance themselves throughout months of unemployment yet it is believed that it will take the average unemployed person three months to find their next job.  Without a doubt you should start looking for a new job right away to deal with your financial situation, but what if it takes longer than you anticipated.   Declining bank accounts leave you with little options.  If you are feeling the crunch of unemployment and do not seem to have enough money to pay your bills bankruptcy may be an option for you.  For a free bankruptcy consultation contact Fears | Nachawati Law Firm, Phone (866) 705-7584. 

Fears | Nachawati Law Firm has offices located throughout Texas in: Dallas / Fort Worth / Houston / San Antonio / and Austin.