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

This is a quick list of the things you can keep when filing for bankruptcy (Depending on the type of exemptions you qualify for and the amount of equity you have).

1.       Your house

2.       Your Car(s)

3.       Your Bank Account(s) – including Savings Accounts

4.       All Retirement Account(s) – Yes, 401ks, 403bs & IRAs.

5.       Your Personal Belongings

6.       Stocks, Bonds and Mutual Funds

7.       You’re Sanity!

Call the office anytime to find out more by dialing toll free 1-866-705-7584 or e-mailing info@fnlawfirm.com. 

As our economy corrects itself after years of mismanagement  by our leaders in government we are confronted with some obvious facts.  The Federal Bailout is helping the  banks, investment firms and the most trusted firms on Wall street, but what about our working class. The American working class is feeling the crunch harder than ever.  The Bankruptcy attorneys at the Law Firm of Fears and Nachawati are standing by to assist you during this troubling time.     

By Barbara Hagenbaugh, USA TODAY

Americans' net worth plunged a record 17.9% in 2008 as the value of their homes, stocks and other assets dropped swiftly, the Federal Reserve said Thursday in a report that did not bode well for consumer spending and the overall economy this year.

With net worth dropping so much, consumers are likely to focus on saving, not spending, as they realize they can't rely on their homes and stock portfolios as ever-rising sources of income, says RDQ Economics senior economist Conrad DeQuadros.

Such saving, while good in the long run, will likely prolong the economic slump. Consumer spending drives more than two-thirds of U.S. economic activity.

"This does point to further weakness in consumer spending going forward," DeQuadros says.

Retired engineer Gerald Sullivan, 58, says he isn't eating out as often or going on vacation now that he's seen the value of his 401(k) and his home sink.

"I was confident before that I was doing fairly well," says Sullivan of Venice, Fla. But, "I have no chance at all of recouping the money by the time I need it."

U.S. net worth, a measure of households' assets minus their liabilities, such as debt, was $51.5 trillion in 2008, the lowest since 2003. The record annual drop in net worth, the first since 2002, accelerated as the year progressed. In the fourth quarter, household net worth dropped 9%, the biggest decline since quarterly records began in 1951, the Fed said.

Other details from the report:

•The value of household real estate fell for a second-consecutive year in 2008, declining 10.5%, the biggest drop on record. At $18.3 trillion, the total value of U.S. homes was the lowest in five years.

•Stock market wealth plunged a record 39.9% in 2008 to $5.5 trillion, the lowest since 1996.

•Corporate profits fell 10.8% in the September-December quarter and were down 8.8% for the year as a whole.

Consumers have been cutting back spending. In February, retail sales fell 0.1% after a 1.8% increase in January, the Commerce Department said Thursday.

"March will see a deeper, and broader-based, decline in consumer spending that will be repeated over subsequent months," Mission Residential chief economist Richard Moody says.

If you are receiving calls from creditors or facing foreclosure contact the Bankruptcy Lawyers of the Law Firm of Fears & Nachawati at (214) 890 - 0711 or info@fnlawfirm.com

These are tough times on the financial front. However, you don't have to watch your retirement hopes slip away from you.  You’ve been planning for your future and saving for retirement. But what do you do when your expenses outgrow your income? Is it wise to make early withdrawals from your retirement to pay for your expenses today? Many retirement plans penalize for early withdrawal. According to IN.gov, taking a lump sum distribution. “gives you the freedom to do whatever you want with the money.  But beware: at the time you cash out, you will owe all applicable taxes. If you're younger than 59-1/2, you'll pay a 10 percent penalty plus state and federal income tax on the full amount of your distribution (including the penalty.) This choice may also affect your ability to receive unemployment compensation . . . Also, if you are vested, you will lose your right to a lifetime pension benefit.” 

If you are overwhelmed by debt and cannot seem to catch up on your bills it is important to know there are alternative solutions to tapping into your retirement. If you are not ready to empty your nest egg solely to survive today and potentially exhaust your funds for tomorrow you may want to consider bankruptcy. For more information on bankruptcy please contact Fears | Nachawati Law Firm, Phone (214) 890-0711, 4925 Greenville Avenue, Suite 715, Dallas, Texas 75206.

The Dallas News featured a September 3, 2008 Washington Post article that reported how many people are feeling the need to tap into their 401(k) plans just to survive.   The article stated that, “Hard economic times are driving some people to take actions that could jeopardize their futures”. The article noted that there is an increase in people tapping into their 401(k) plans to supplement their financial needs, but that people who do are jeopardizing their long term retirement plans. A person must show severe financial need. Moreover, they would be subject to a 10% penalty tax if younger than 59 ½ and their account would be frozen for six months after the withdrawal wherein neither the employee nor employer may contribute.  People who are feeling the effects of this difficult economy, who are being inundated with bills that have now surpassed their income, should be aware that in most circumstances their 401(k) is protected should they need to file for bankruptcy. There may not be a need to diminish your retirement savings to survive in today’s economy. For more information on bankruptcy – who it’s for and what assets may be protected please contact Fears | Nachawati Law Firm, Phone (214) 890-0711, 4925 Greenville Avenue, Suite 715, Dallas, Texas 75206.