If you are facing foreclosure, you should know that you have rights and that it is possible to fight to protect your home and family. You will need experienced foreclosure defense attorneys who can provide trusted advice and courtroom-tested advocacy. Fighting a foreclosure is often an uphill battle; but fighting is the best way to protect your rights. You may be able to defeat the foreclosure entirely, gain time to negotiate a compromise, or in some cases, bring a lawsuit for money damages based on breach of contract, wrongful foreclosure, or violation of fair debt collection practices.

Here are some of the most successful strategies for fighting a foreclosure. Which strategy might work best for you depends on the unique circumstances of your case.

Individuals buying a home generally sign two documents as part of the loan transaction — a promissory note and a deed of trust (often called a mortgage). The promissory note is the specific loan document that states the loan amount, the interest rate, the term, payments, and more. The deed of trust is an agreement that gives the lender security for repayment allowing, in general, the lender to seize and sell the property if the borrower fails to make the required payments on the note.

These documents are contracts binding on the lender. The lender's failure to honor all of its obligations under both the note and deed of trust can be a valid legal defense to a foreclosure. For example, in Texas, most deeds of trust require the lender to send what is generally called a "breach letter." Generally, these letters state that:

The borrower is in default for the stated reasons (such as non-payment)

The action or actions that the borrower can take to cure the default

A specific deadline for curing the default and

Failure to cure will allow the lender to accelerate the loan and foreclose

According to most deeds of trust, these breach letters MUST be sent before the lender can begin the process of foreclosure.

If the lender tries to accelerate and foreclose the loan before sending a breach letter, that is a violation of the deed of trust by the lender. Some judges will consider that grounds for preventing the bank from foreclosing. In the same manner, any other material breach of the loan documents by the bank can have the same result. A judge might stay a foreclosure proceeding and require the lender to “start over.”

Note that in some States, like Texas, foreclosures do not require the filing of a lawsuit by the lender. Thus, to legally assert that the lender has breached the note and/or deed of trust, the borrower must file a lawsuit asking the court to stop the foreclosure proceedings because of the lender's breach. In other states, lenders must file lawsuits in order to foreclose. In those jurisdictions, borrowers can raise contract defenses and others when they respond to the lender's lawsuit.

In addition to requirements that are set out in the loan documents, there are many federal and state laws that govern home loans and the process by which a lender can foreclose. If a lender violates these laws, then the lender has potentially committed wrongful foreclosure. As an example, under the Texas Property Code, § 51.002.b1, when a borrower is in default, a lender must send a written notice to the borrower stating they are in default for failing to make payments AND that the whole amount of the loan is due. This is called an "acceleration letter" and it must be sent to the borrower via certified US mail. In addition, a copy of the letter must be posted at the county courthouse where the property is located and where the sale will take place. The letter must give the borrower 20 days to pay the loan. After the 20-day cure period expires, then the lender must send another written notice called a “Notice of Foreclosure Sale.” This states the date, time and location for the foreclosure sale. This notice must also be sent via US certified mail, filed with the county clerk and posted at the courthouse. A sale can be scheduled 21 days after the 20-day cure period expires.

If a lender fails to follow these procedures exactly, then the lender has potentially committed unlawful or wrongful foreclosure. A judge may prevent the foreclosure from going forward if it can be shown that the lender has committed violations of this Texas statutory provision or of other state and/or federal laws. Because Texas does not require lenders to file suit to foreclose, borrowers must sue the lender in order to raise these statutory defences.

Borrowers should be aware that the "produce the note" defense is not effective. It is popularly assumed by borrowers that a lender must have the original promissory note to foreclose on a deed of trust or mortgage. However, courts in most jurisdictions have eliminated this defense by allowing lenders to use other evidence to prove the validity of the loan and the mortgage documents. Often, the documentation is as simple as an Affidavit of Lost Note. The "produce the note" defense is not effective in Texas. See 

, 545 S.W.3d 169 (Tex.App.-El Paso 2017).

There are also a number of federal and state laws that govern unfair and fraudulent debt collection practices. Essentially, creditors, including lenders, cannot use improper methods when attempting to collect debts. Improper methods include using misleading and false statements and engaging in harassing, coercive and intimidating collection behavior. Examples include using abusive language over the phone, making false or misleading statements in notice letters and contacting a borrower's employer and/or family members to discuss the borrower's non-payment.

In addition, statutes give borrowers and debtors certain rights that must be honored by lenders. For example, under the federal Fair Debt Collection Practices Act -- 15 USC 1962, 

 -- debt collectors must tell borrowers certain information up front, including that they are attempting to collect a debt, the debt amount, the current holder of the debt, the borrower’s right to dispute the debt, and other information. Borrowers generally have 30 days to dispute a debt and request verification and the lender must respond in writing. Failure of a lender to provide this information can subject a lender to civil and statutory penalties. Such might even be sufficiently egregious to allow a judge to stay foreclosure proceedings.

As noted, whether a borrower has a cause of action for unfair debt collection practices depends on the unique circumstances of the case. Some of the factual questions are whether the employees of the original lender engaged in the abusive collection practices, whether the note was assigned and whether the note was turned over to a collection agency.

Foreclosures can be prevented, at least temporarily, by filing for bankruptcy. When a bankruptcy is filed, pursuant to the "automatic stay" that is embedded in the Bankruptcy Code, all efforts to collect debts must stop. These efforts include foreclosures.

However, generally, bankruptcies do not protect collateral that is used to secure debts. In general, bankruptcy courts will allow creditors to seize such collateral. Home loans are examples of such secured loans -- the promissory note is secured by the home or land. As such, lenders can petition the bankruptcy court to "lift the stay." Bankruptcy courts routinely grant such petitions. This means that a bankruptcy filing will only temporarily prevent a foreclosure. However, a bankruptcy filing may be the best solution. An experienced debt relief attorney can help explain your options and how a bankruptcy might impact your home and life.

Fighting as a Method of Negotiating a Compromise

Despite the large array of strategies that can be used to fight, defeating a foreclosure is not easy. Lenders have teams of skilled attorneys and professionals that are generally careful about following the contractual and statutory procedures. That being said, even if you cannot prevent a foreclosure or win money damages, fighting is often the most effective method of negotiating a compromise with your lender. Such compromises might include:

Loan modification agreements that reduce your interest rate or extend the term of the loan

Additional time to negotiate a sale of the property to a third party (including a possible short sale)

Agreements by the lender to waive any claims related to deficiency

Transfers of the property to the lender without foreclosure which can potentially protect credit ratings and history

The best way to protect yourself, your home, and your family is to seek professional help from foreclosure defense and debt relief attorneys.

For more information about fighting a foreclosure or negotiating with your lender, contact our attorneys today for a free consultation.

Fighting Foreclosure to Protect Your Home and Family

If you are having trouble paying your debts as they become due, you may be considering filing for bankruptcy. If so, one of the questions you may be asking yourself is whether you need to consult and hire a bankruptcy attorney, or whether you can go it alone.

If you are having trouble paying your debts as they become due, you may be considering filing for bankruptcy. If so, one of the questions you may be asking yourself is whether you need to consult and hire a bankruptcy attorney, or whether you can go it alone. It is true that the law allows individual debtors to file and proceed in bankruptcy 

, without legal representation. Before you decide to go this route, however, consider that treating your individual bankruptcy case as a DIY project may not be your best choice.

Uscourts.gov is a website that is maintained by the Administrative Office of the U.S. Courts in order to provide information from and about the federal judiciary, which includes the bankruptcy courts. According to this website, there are many aspects of a bankruptcy case that lawyers can help with, from advising you on whether to file for bankruptcy in the first place to helping you to complete and file the necessary forms. The website also notes that by failing to properly prepare your bankruptcy case, or failing to carefully and properly consider or understand the legal issues involved, you risk obtaining adverse results.

There are many factors to consider and specific questions you need to answer in order to file a successful bankruptcy case. Here are just a few of the decisions a bankruptcy lawyer can help you make:

Which Type of Bankruptcy is Right for Me? Chapter 7 or Chapter 13?

Most individual bankruptcy cases are filed under Chapter 7 or Chapter 13 of the Bankruptcy Code. Chapter 7 cases are known as liquidation cases, while Chapter 13 cases are known as reorganization cases. Both types of cases ultimately lead to a discharge, or relief from paying your debts. However, Chapter 13 cases involve developing a payment plan, which can take years to complete. One sure reason to consult a bankruptcy lawyer is to determine which type of case is right for you.

Am I Eligible to File for Chapter 7 or Chapter 13?

At the outset, you should be aware that not every debtor is allowed to file a chapter 7 liquidation case.

Generally, you must pass a “means test” before you will be allowed to file for Chapter 7 bankruptcy relief. Essentially, this means test compares your income (per family) with the median income of a Texas family of the same size as yours. There are also debt thresholds you must satisfy in order to file a Chapter 13 case. To file a Chapter 13 reorganization case, you must have less than a certain amount of debt, unsecured and/or secured.

Bankruptcy cases are filed in federal courts. If you decide to proceed pro se, you will need to understand and follow the rules that apply generally in federal courts, as well as the specific local rules that apply to the Texas bankruptcy court in which your case is filed. Also, you will need to understand the basic bankruptcy laws and rules that will be applied in your case – the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure – and which apply in all bankruptcy cases. There are also state laws that may apply, such as the Texas exemption law, which can determine which property you claim as exempt in your bankruptcy case.

In addition to these questions, there are many more that a qualified bankruptcy lawyer will ask to help you decide whether and what type of bankruptcy filing is right for you. If you would like to know more, or to discuss your potential bankruptcy case, contact The Law Offices of Douglas J. Powell, P.C. at (512) 476-2457.

Filing for Bankruptcy: Do I Need to Hire a Lawyer?

For many people, filing for personal or business bankruptcy is the right course of action. The emotional and physical stress that results from constant worry and from constant harassing calls from creditors can be overwhelming. Having to use one credit card to make payments on another and never having savings in the bank can wreck your well-being and undermine your marriage and family. For some, quite literally, obtaining debt relief through a bankruptcy can be life-saving. 

In addition to stress-relief, there are many other advantages of filing for bankruptcy, including:

Obtaining immediate relief from harassing creditors through the automatic stay

Preventing foreclosure and other property seizures through the automatic stay

Obtaining permanent debt discharge or an affordable payment plan through a reorganization of debt

Preserving certain assets, like the family home, from seizure by creditors through use of bankruptcy personal exemptions

Beginning the process of rebuilding financially post-bankruptcy

That being said, filing for bankruptcy is not always the best option for debt relief. Determining whether a bankruptcy is right for you involves an exacting examination of your debt, income and assets and your short- and long-term financial goals. Here are some examples of when a bankruptcy filing is NOT the right choice:

When a substantial majority of the debt cannot be discharged (like student loans, unpaid taxes, alimony and child support obligations)

When essential assets, like an ongoing family business or large property holdings, will be lost during the bankruptcy

When the needed debt relief cannot be obtained from a bankruptcy

When near-term financial goals, like buying a home, cannot be achieved if bankruptcy is filed

When foreseeable non-avoidable debts are on the horizon for the next several years; a bankruptcy can be filed only every eight years

There are also important negative consequences for those that obtain debt relief through a bankruptcy filing, including:

Inability to obtain uncollateralized credit like personal loans and credit cards; this can persist for several years

Higher interest rates for collateralized loans, like for auto loans; this can persist for several years

Difficulty in obtaining some types of loans even where collateralized, such as a home loan

Immediate drop in credit scores, which can persist for up to 10 years

Difficulty obtaining leases, as rental companies and landlords often inquire about bankruptcies; can be the basis for denial

Employment impact; some employers use bankruptcy filings as a hiring criteria

For those considering a bankruptcy filing, you will need to retain experienced and dedicated attorneys with extensive knowledge of the Bankruptcy Code and other debt relief mechanisms to provide advice and counsel. There are other methods of obtaining debt relief. Good debt relief attorneys can help weigh the advantages and disadvantages of each and help determine the right strategy based on your unique circumstances.

To explain whether filing for bankruptcy is right for you, a brief overview of the process can be helpful. Bankruptcy is a legal process that begins with the filing of a bankruptcy petition. The petition is a long document that details the debtor’s income, assets, debts and other matters.

When a petition is filed, by law, ALL efforts by creditors to collect debt payments must stop including phone calls, letters, foreclosures, lawsuits, garnishments and seizures. This is called the "automatic stay" and this is why filing for bankruptcy provides such immediate relief to those suffering from debt collection harassment. For those needing relief from creditor harassment, a bankruptcy filing is often a good option.

Each bankruptcy petition is assigned to a federal bankruptcy judge who has the ultimate authority with respect to how the case is handled. Each petition is also assigned to a Bankruptcy Trustee who acts on behalf of the judge and handles the routine processing of the case.

The Trustee also acts as an "agent" or "trustee" for the creditors. When the petition is filed, all of the assets and debts of the debtor become part of what is called the bankruptcy estate. For example, if the debtor is a small business that is unable to continue operating, assets might include inventory, physical equipment and real estate. If the debtor is an individual, assets might include the debtor's home, financial accounts, cash on hand and automobiles. While the bankruptcy is pending, all of these assets are "owned" by the bankruptcy estate and are under the control of the Trustee. These assets are available to the Trustee to be liquidated in order to pay as much of the sales proceeds as possible over to the creditors. This is the mechanism by which personal and family assets can be lost. For some, this is a reason for NOT filing for bankruptcy.

However, a bankruptcy can also be a mechanism that can preserve personal and family assets. In a personal bankruptcy, assets are not generally sold if there are substantial personal exemptions that can be applied. The Bankruptcy Code and state statutes provide various exemptions for use when a person files bankruptcy. For example, every state provides an exemption in some amount for the debtor's personal residence. In Texas, the exemption amount is unlimited as long as the land is less than 10 acres in a city or town and less than 100 acres elsewhere. See Tex. Prop. Code 41.001 - 41.002. By contrast, in Indiana, only $19,300 of the value of the debtor's residence/real estate is exempt. See Ind. Code § 34-55-10-2(c)(1). There are also exemptions that cover various dollar amounts for vehicle and personal property.

From this brief overview, one can see how filing for bankruptcy can protect a debtor's personal residence and other personal assets. Without a bankruptcy filing, creditors could seize the house or other assets in the manner of a foreclosure. For those needing to protect personal and family assets, a bankruptcy filing is often a good option.

As can be seen, making the decision to file for bankruptcy is complex and depends on a large number of variables. Filing for bankruptcy is often the best choice, but not always. More importantly, the timing can be of crucial importance. Debts incurred post-filing cannot generally be included as part of the bankruptcy relief.

Contact Our Skilled Bankruptcy Attorneys Today

For more information and for help weighing the pros and cons of filing for bankruptcy, contact our skilled bankruptcy attorneys today. We can help navigate the options and can offer guidance on how a bankruptcy filing might impact your life. Contact us for a free consultation.

Could bankruptcy be right for me?

If you are facing eviction, you should seek advice and counsel from attorneys who are experienced in protecting the rights of tenants. Here is some general information on the options available.

If you are facing eviction as a residential tenant here in Austin, you have several options including the following:

An eviction is a legal process that involves your landlord providing various types of notices to you, the tenant, and eventually filing a lawsuit in the Texas state courts. In legal terms, these eviction lawsuits are called Forcible Detainer actions. Filing a Forcible Detainer action is the only method that a landlord can use to regain possession of an apartment or other leased property. Austin landlords CANNOT use any sort of "self-help" such as turning off the utilities, locking the tenant out, or hiring a moving company to put the tenant's furniture on the curb.

Tenants who want to fight their eviction must have one or more legal defenses when they appear in court.

One potential defense is to prove to the court that the landlord had a discriminatory or unlawful reason for terminating the lease. Austin landlords are obligated to treat their tenants fairly and to provide them with the full complement of rights that are guaranteed by Texas law. Among these rights include the right to non-discrimination in housing. As such, a landlord cannot evict a tenant for any discriminatory reason or in retaliation for the tenant exercising their rights under the lease, under Texas law and/or under the US and Texas Constitutions.

Factual inaccuracy can be another potential defense. Non-payment of rent is the most common reason for eviction. However, if a tenant can prove that the rent was paid on time, then a judge will likely accept that as a valid legal defense that will prevent eviction. The same is true for other alleged violations of the tenant's lease.

Another option is to demonstrate that the landlord failed to follow the proper legal procedures for the eviction. The onus is on Austin landlords to follow the procedures that are required to terminate a tenancy and to file the Forcible Detainer action.

In Austin (and in Texas generally), a landlord can terminate a lease if the tenant violates provisions of the lease. However, BEFORE filing for eviction, Austin landlords must give tenants a WRITTEN notice that that the tenant's right to possession is being terminated and a date on which the tenant is to vacate. This notice is called a Notice to Vacate. Under Texas law, the time period is three days unless the lease provides for a shorter or longer notice period. See Tex. Prop. Code Ann. § 24.005. The Notice to Vacate must be delivered in a manner prescribed by law. For example, the landlord must deliver the Notice by personal delivery or by certified, registered, or regular mail or by attaching the Notice to the door or entryway. If the tenant fails to vacate, THEN the landlord can file a Forcible Detainer action.

Failure of the landlord to follow the eviction procedures exactly may result in the judge dismissing the landlord's eviction action. For example, if the Notice to Vacate was given verbally, that will not be legally correct notice and, likely, the eviction action will be dismissed by the judge. Likewise, if the landlord did not give the proper amount of time for vacating, likely, the eviction will be dismissed. At minimum, the tenant can counter-sue in the lawsuit and attempt to recover statutory damages for the landlord's violation of the tenant's rights. Other procedural and legal defenses might include:

Other defects in or with respect to the Notice to Vacate

Premature filing of the Forcible case -- case was filed before expiration of the time in the Notice to Vacate

Failure to allow tenant to fix the problem (but giving an opportunity to fix the lease violation is not always required)

Landlord waived or otherwise allowed the violation of the lease

Lease violation was caused by the landlord

When confronted with an eviction, rather than fighting, sometimes the best solution is to negotiate. Most landlords would prefer to negotiate a solution rather than file an eviction. This is true because evictions are time-consuming and expensive.

Potentially, many days and weeks can pass before a tenant is actually removed from a leased premises. As described above, at least a few days are needed for the Notice to Vacate to be delivered and for it to expire. Then the Forcible Detainer lawsuit must be filed. The lawsuit itself takes a few weeks to complete. For example, copies of the court papers must be delivered to the tenant and the tenant has an opportunity to file papers in opposition to the eviction. Importantly, the tenant can and should demand an eviction hearing before a judge (which is like a mini-trial). The tenant can ask for an extension of time for the first hearing date and, often, judges will grant such requests. At the hearing, the tenant can present various defenses to the eviction. If the judge agrees with the tenant, then the eviction will be dismissed.

If the judge agrees with the landlord, there are potentially many more days until the landlord actually takes possession. Often the judge will give a tenant some time — usually about 10 days to two weeks — to vacate the premises after an eviction hearing. If the tenant does not vacate, then the Constable/Sheriff is sent out to execute a Writ of Possession. Executing the Writ is the procedure by which the Constable/Sheriff supervises the removal of the tenant and the tenant's belongings. This is another lengthy and expensive process.

Because of the time and expense, negotiation is a legitimate strategy for a tenant faced with eviction. During the negotiation process, it is advisable to consult with an experienced tenant's rights attorney. Issues that can be negotiated include:

Modification of lease terms to correct/fix lease violations (such as removing a “no pets” clause if having a pet is the violation)

Extra time for tenant to find a new rental

Return of security deposits and other collateral

Payment by the landlord for vacating the premises quickly

Even if a tenant is willing and able to vacate the premises after receiving a Notice to Vacate, it is still important to contact the landlord to negotiate details. Often, landlords will have some flexibility with regard to the move-out date and, typically, concessions can be negotiated with respect to return of security deposits and past-due rent amounts. Occasionally, landlords are willing to pay moving expenses and offer other financial inducements to gain possession quickly. Any waiver or reduction in past due rent and any other agreements with the landlord should be reduced to writing. Again, it is advisable to have an experienced tenants’ rights attorney help you with this process.

Contact Experienced Tenants’ Rights Attorneys Today

If you are facing an eviction here in Austin, contact our law office today. We can offer advice and counsel on how to best proceed. We are courtroom-tested and can provide you with trusted legal services.

What to do if You are Facing Eviction in Austin

Austin has a number of state, federal, and community resources available to help you through this tough time. Don’t be afraid to ask for help or to advocate for the assistance you deserve. We have compiled an overview of resources available for individuals and families here that we urge you to utilize. 

There is no denying that the COVID-19 pandemic has had a massive impact on our nation. As hard as it has been for many, one positive impact of the pandemic is that it has brought us closer as a community (although not physically!) and has allowed us to rally together and stay strong even when most of our local economy grinds to a halt. Austin has a number of state, federal, and community resources available to help you through this tough time. Don’t be afraid to ask for help or to advocate for the assistance you deserve. We have compiled an overview of resources available for individuals and families here that we urge you to utilize.

Help Getting Emergency Financial Assistance

Catholic Charities of Central Texas has $1.6 million in aid available and is assisting those adversely impacted by the pandemic with mortgage or rental payments, car payments, and utilities. If you can prove you live in Austin-Travis County and lost wages due to the pandemic, you qualify for $1,200-$5,000 in assistance, which will be paid directly from the charity to your landlord, mortgage lender, or utility provider. The number you must call to apply varies depending on your last name: A-D: 512-910-5768; E-K: 512-910-5907; L-R: 512-910-7076; S-Z: 512-910-7170.

Asian Family Support Services of Austin is providing $1,200-$5,000 in assistance to residents of Austin-Travis County who have been impacted by the COVID-19 pandemic, make less than $52,400 a year, and did not qualify for a federal stimulus check. In order to apply, call 512-358-6318 or email RISE@AFSSAustin.org.

El Buen Samaritano is offering $400 Visa gift cards to residents of Austin-Travis County who have been impacted by the COVID-19 pandemic, make less than $52,400 a year, and did not qualify for a federal stimulus check. Call 512-714-6917 to apply.

If you are eligible for a stimulus check, and have not yet received it, it is worth following up on, as most individuals earning $75,000 annually or less in 2018 are set to receive $1200, which could go a long way in helping with rent and other expenses.

United Way of Greater Austin can connect you with emergency food in your area.

AuntBertha is a resource that allows you to search for low-cost food and services, including healthcare.

Apply for Texas Workforce Commission Unemployment Benefit Services online by selecting “Submit an application for unemployment benefits,” or call them 7 days a week from 7:00 a.m. to 7:00 p.m. at 800-939-6631.

You can complete a free online tutorial here to learn step-by-step how to file your application online. For a good overview of frequently asked questions about filing for unemployment, review this handy guide.

Your claim starts the week you complete the application, so apply as soon as possible after you become unemployed. Note that Texas has waived the usual 10-day waiting period for filing, so you are now eligible to file as soon as you lose your job.

If your income has been impacted by COVID-19, Workforce Solutions Capital Area can provide immediate career assistance. They can aid you in building your resume, earning a GED, finding a job, getting training, and gaining occupational skills. They have a form you can fill out on their site to receive information on available assistance, as well as job postings. There are currently over 100 jobs posted with immediate openings, so start applying today.

WorkinTexas.com provides a comprehensive database of nearly 85,000 open positions in Texas. With over 1,000 new positions added just today, it is definitely worth making an account.

The Austin Chamber of Commerce has an extensive database of companies that are currently hiring.

Want professional tips on finding a job? Check out this free webinar and accompanying resources from the Austin Chamber of Commerce

Texas has expanded access to the childcare subsidy, increasing the maximum eligible income from 85% of the state medium income to 150%, or approximately $118,000 annually or $9800/month. You can apply for childcare financial aid here.

Are you a Texas frontline worker? Check here to find available childcare options closest to you.

The Artists Emergency Relief Fund has a limited number of grants of up to $500 available for artists to help replace income lost due to COVID-19.

Artist Relief is working to support artists during the COVID-19 crisis and is awarding grants of $5,000 on an application basis.

Artists’ Fellowship, Inc. provides financial assistance to artists during times of emergency and is accepting applications.

If you cannot pay your rent, your first step should be communicating with your landlord to see if an arrangement can be negotiated that will allow you to remain in your home during this crisis. Landlords may be willing to negotiate or defer rental payments as it is not an ideal time to look for new tenants, and they are not legally allowed to evict current tenants during the COVID-19 pandemic.

The Texas Supreme Court has suspended evictions through May 18. City Ordinance No. 20203026-090 and Mayor Order 20200326-008 both aid in delaying the eviction process, giving you more time to find rental income either through emergency grants, community assistance, your stimulus payment or refund, or employment. If your landlord violates the Mayor’s Order and evicts you, gives you a notice to vacate, or locks you out for non-payment without giving you 60 days notice, they can be punished with a fine up to $1,000 or a jail term of up to 180 days.

For a comprehensive guide on the eviction process and available resources check out the City of Austin Neighborhood Housing & Community Development guide, “What Renters Should Know About Recent Steps to Slow Down the Eviction Process.”

The Resident Relief Foundation may be able to provide you with emergency financial grants to help pay your rent. Rent and utility assistance is also provided by Austin’s Neighborhood Centers via phone at 512-972-5780.

If you are concerned about your ability to make your mortgage payment, it is advisable that you contact your provider as soon as possible to see about alternative payment arrangements. A number of lenders are postponing and deferring mortgage payments during the pandemic—call your provider to find out if they are one of them. If your lender is Fannie-Mae, Freddie Mac, or another FHA-insured lender, your home cannot be foreclosed on through May 16.

In order to lessen the financial burden on families during the COVID-19 crisis, a number of Texas electricity providers have suspended disconnections and are waiving late fees. Contact your provider as soon as possible to alert them if you will be unable to make your payment and see what accommodations they have available.

If your utility provider is not providing relief, contact the Public Utility Commission’s Low-Income List Administrator—they have a new COVID-19 Electricity Relief Program, and if you are found eligible, it will prevent your electricity from being disconnected during the pandemic. To enroll, call 866-454-8387 anytime, day or night. Or, apply online through the Public Utility Commission of Texas. Once you have qualified, you’ll be safe from disconnection within seven days, so enroll as soon as possible, and, if your bill is due within that time-frame, call your utility provider immediately to discuss payment deferrals or other arrangements to ensure that you are not left without power or other vital utilities.

When it comes to protecting your credit during a difficult financial time, the best defense is a good offense. If you are uncertain whether you will be able to pay your utility, phone, credit card bill, mortgage, car payment, or rent, contact your lenders now and do your best to reach an arrangement that will allow you to avoid a late or missing payment, which would negatively impact your credit. If your lender agrees to postpone or reduce payments and you are able to meet the agreed upon terms, then your credit will not be impacted, and if you end up being able to pay the full amount on time, you still can.

If you are unable to reach an agreement with your lender, there are a number of things you can do, many of which have been covered in this guide, such as applying for unemployment insurance, looking for a job, and applying for local emergency financial assistance and grants. If you are in debt over your head, and are having trouble covering your living expenses while paying off your debts, bankruptcy is another way that you can help your credit, by keeping it from getting any worse so you can start the process of rebuilding it.

It is a myth that bankruptcy will destroy your credit. In reality, bankruptcy puts a strop to the downward spiral your credit is in, allowing you to start rebuilding it. For many who are dealing with lay-offs or reduced income, bankruptcy may be a good option to ensure that a bad financial situation does not become worse. If you are currently unemployed or your income is below the state median, it is generally advisable to file for Chapter 7 Bankruptcy, which, luckily, is the most expeditious process—usually only taking about four months, with most filers reporting an increasing credit score within 12 months. In most cases, you will also get to keep assets that you need to work and live—you will have to liquidate the rest though in exchange for paying off most of your medical, credit card, and rent debt.

If you are thinking about filing for chapter 7 bankruptcy, it is important to talk to an experienced bankruptcy attorney. While you can file on your own, an experienced bankruptcy lawyer will be able to assess whether there are options other than bankruptcy that would be a better fit for your circumstances, and if bankruptcy is the best option, they will know how to file in the way that minimizes the drawbacks and maximizes the benefits. Most lawyers offer a free consultation—you can search for a local lawyer and schedule a free consultation here. You can find information and resources on chapter 7 bankruptcy here.

As crazy as things seem right now, it is important to keep a calm, level head when making decisions, instead of reacting from a place of fear—particularly when the decisions are financial. Make sure you are taking care of yourself physically and mentally, so that you can think clearly. There are a number of resources available to help you with everything from managing daily stress to finding a free therapist or online recovery program.

Not sure if you are experiencing anxiety? Mental Health America explains what anxiety is and how you can recognize it.

The Director of the National Institute of Mental Health has provided some helpful tips on managing stress, fear, and anxiety associated with Coronavirus.

Use these affirmations to overcome anxiety about COVID-19.

Calm offers a number of free meditations and grounding exercises that you can use to stay positive, centered, and focused.

If you are experiencing anxiety about COVID-19, you can call the COVID-19 Mental Health Support Hotline for help at 833-986-1919.

Here is a database of COVID-19 mental health information and resources.

Mental Health Match helps match you with a licensed therapist in your area and has online support groups. They are currently offering a limited number of sessions free to qualifying Texans affected by the pandemic.

The Texas Psychological Association is offering qualifying Texans with up to 2 free hours of counseling through their TPA Pro Bono Project: COVID-19. Email probono@texaspsyc.org for more information.

SAMHSA has virtual recovery programs available on a number of platforms for anyone who would benefit.

You are Texas strong, and when times get tough, Texans pull together, not apart. Support your community however you can and allow yourself to ask for help when you need it. Be proactive, apply for the aid you are entitled to, and do what you can to stay safe, calm, and centered. This is temporary, and even if it does not feel like it right now, it will be okay. We are here to support you every step of the way.

If you need anything, don't be afraid to reach out: (512) 476-2457.

Navigating the economic impacts of COVID-19 in Austin

If you are being harassed by creditors who are constantly calling, texting, and sending threatening letters, filing for bankruptcy may be the best solution to your debt problems. Here in Travis County, thousands of individuals file for personal bankruptcies every year. There is no shame or stigma to filing for bankruptcy. For businesses, filing for bankruptcy is often a necessary financial and economic decision

If you are being harassed by creditors who are constantly calling, texting, and sending threatening letters, filing for bankruptcy may be the best solution to your debt problems. Here in Travis County, thousands of individuals file for personal bankruptcies every year. There is no shame or stigma to filing for bankruptcy. For businesses, filing for bankruptcy is often a necessary financial and economic decision. As an example, Gourdoughs, known for its amazing doughnuts, recently filed for bankruptcy protection. See 

The same can be true for personal bankruptcies since debt-burdened individuals need to obtain debt relief and to protect their personal and family assets. Here is a quick rundown on how filing for bankruptcy works in Travis County.

Bankruptcies are filed pursuant to federal law and, consequently, bankruptcies are handled by the federal courts. Texas has four federal court districts with Travis County being in the Western District. The main courthouse is located at 903 San Jacinto Boulevard in Austin.

Bankruptcy is a legal process that officially begins with the filing of a Bankruptcy Petition. The petition is a set of court forms containing many pages, which list the details of the debtor's income, expenses, assets, debts, financial accounts, and other information. The purpose of a bankruptcy is to provide debt relief for qualified debts. Debt relief can be in the form of discharge or reorganization. Individual debtors generally file under Chapter 7 for debt discharge and under Chapter 13 for debt reorganization. Not all debtors are eligible for Chapter 7 discharge. Further, not all debts can be discharged or reduced via bankruptcy. Examples of non-dischargeable debts include student loans, taxes owed to various governmental entities and child support obligations.

When a petition is filed, the court assigns a bankruptcy judge to oversee the case. In addition, a bankruptcy trustee is assigned to help the judge and to handle the day-to-day processing. For example, the trustee will preside over the §341 Meeting of Creditors which the debtor must attend. The location, date and time for the Meeting of Creditors is assigned when the petition is filed.

Before filing a petition, a debtor must undertake four preliminary steps.

First, the debtor should consult an experienced debt relief attorney for advice and counsel. A bankruptcy 

 be filed without an attorney, but time-consuming mistakes are avoided and the results are more successful if the debtor has trusted counsel to help.

Second, debtors must gather documents and information. As noted, all debtors must list their assets and debts and other information on the petition. In general, the information must be complete and accurate at the time the petition is filed. Thus, copies of paychecks, bills, financial statements and the like must be gathered to facilitate completion of the petition. Some debtors find that getting a copy of a recent credit report is a quick and efficient method of gathering the full list of creditors. Note that creditors' addresses and account numbers must be provided on the petition. Creditors must also be grouped as "secured" or "unsecured" creditors. Debtors will also need copies of their last two years of tax returns. Here is another place where a good debt relief attorney can help. As the petition is completed, your attorney can make sure the petition is being prepared properly and can prompt for income, expenses, debts, assets or other missing information.

Third, the debtor must decide whether to file under Chapter 7 (discharge) or Chapter 13 (debt reorganization). As noted, not every debtor is eligible for full discharge of qualified debts. In general, discharge is only available for mid-to-lower-income individuals. The income levels are based on the average gross monthly income for where the debtor lives and the size of the debtor's household. For example, as of May 2020, for debtors in Austin living in a single-person household, the income threshold is about $4,200 a month. A debtor making less than that amount is eligible for Chapter 7 discharge. Other income levels for larger households are approximately:

Even if the debtor's gross monthly income exceeds these amounts, debtors might still qualify for Chapter 7 under other tests. This is another area where a good debt relief attorney can help.

Fourth, debtors must take a credit counseling course (one of two courses that are required). Almost all individual debtors use online on-demand counseling services. These credit counseling courses are mandated by the Bankruptcy Code and must be completed sometime within 180 days before the petition is filed. At the end of the course, a certificate of completion is provided..

When the petition is complete and the debtor has finished the credit counseling course, the petition is filed with the court. Unless a waiver or an installment payment plan is approved by the court, the debtor must pay the court filing fees which are currently

Once the petition is filed, all efforts by creditors to collect debts must stop. This is required by the Bankruptcy Code's "automatic stay." The automatic stay provides immediate relief from harassment by creditors. Creditors become aware of a bankruptcy petition because the court sends a notice to all listed creditors. This is the reason that addresses and account numbers must be listed on the petition.

Post-filing, there are two notable requirements. First, about a month after the filing, debtors must attend their §341 Meeting of Creditors. This is often the only formal proceeding at which an individual debtor must appear. As noted, the trustee presides and the meeting is generally held in a conference room at or near the federal courthouse. Most creditors do NOT attend, since the meeting is mostly consumed with the trustee asking questions and verifying information. Generally, at or around the time of the Meeting of Creditors, the debtor will be asked to sign any reaffirmation agreement for debts that the debtor wishes to keep. For example, if permitted, a debtor might reaffirm a car loan, continue making the monthly payments and retain the car.

Second, debtors must take a second mandated course relating to financial management. This course is intended to help with budgeting and to help debtors avoid falling back into crushing debt. Again, most debtors take this financial management course online. The Certification of Completion must be filed with the court.

Following the Meeting of Creditors, a 60-day deadline begins to run during which creditors and the trustee can file objections to the bankruptcy. In general, if no objections are filed, then the bankruptcy is completed within the following two to four months.

For more information and for help filing your bankruptcy, contact our skilled bankruptcy attorneys. Reach out today to schedule your free consultation.

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