Articles Archive By Bob Gorsky BANKRUPTCY LAW CHANGES IN THE WORKS The United States Senate has passed bankruptcy legislation which includes an income-based test for measuring a debtor’s ability to pay debts. The Bankruptcy Abuse and Consumer Protection Act will also require some filers to undergo credit counseling and some filers will be forced into a Chapter 13 bankruptcy rather than Chapter 7. Under Chapter 13, the bankruptcy judge could order a repayment plan, forcing up to 20% of the filers to pay debts such as credit card balances and medical bills, debts that would be discharged under current law. The legislation was passed on March 9, 2005 by a 74 – 25 vote and will be sent to the House of Representatives, which is expected to approve it before it is sent to President Bush for his signature. A Harvard study earlier this year reported that half of those filing for bankruptcy were forced to do so because of debts related to medical difficulties. Many of those individuals had health insurance so the bankruptcy law changes could have a significant impact on a number of bankruptcy filers. While bankruptcy filings in the twelve month period ending September 30, 2004 were down 2.6% from the previous year, there will no doubt be a rush to the courthouse for many who want to file before the new law goes into effect. If your financial position is such that bankruptcy is a consideration, you should see a bankruptcy specialist immediately. _______________________________________________________________ APPEALS PANEL HEARS SOVERIGN IMMUNITY ARGUMENTS...... A Dallas Court of Appeals Panel heard arguments on March 15, 2004 in the appeal brought by the City of Dallas in the Falls, et al. vs. The City of Dallas case. The case was brought by eight deputy chiefs, two assistant chiefs and three Dallas Fire and Rescue Department deputy chiefs who were denied the 5% pay raise in the 2002 – 2003 city budget. A Dallas County District Judge had denied the city’s sovereign immunity claim last year. There are numerous sovereign immunity cases pending before the appellate courts and it is expected that the Texas Supreme Court will ultimately issue guidance on the sovereign immunity issue, affecting several cases, including the police and fire pay lawsuits. ______________________________________________________________ On March 15, 2005 I came across a small note on the second page of The Dallas Morning News Metro section reporting that the family of Pedro Fernandez have filed a notice of dismissal of its federal lawsuit against the City of Dallas and several Dallas police officers as a result of the June death of Pedro Fernandez. The Dallas County Medical Examiner has ruled that drug use and obesity were factors in his death. You may recall that the filing of the suit was accompanied by a press conference and outrageous allegations by the family’s attorney that among other things investigators colluded with the District Attorney’s Office to ensure that officers were not indicted. Allegations were also made that the lead investigator was biased in favor of the officers because of his leadership position with the Dallas Police Association. According to the newspaper article neither lead attorney Raul Loya nor family members returned phone calls Monday. There may be many reasons for the lawsuit’s dismissal, but in view of the media coverage generated by the lawyers at the time of filing, it is interesting that the case was dismissed so quietly and without comment or a press conference. _______________________________________________________________ Bob Gorsky is a partner at the Dallas law firm of Lyon, Gorsky, Baskett, Haring, Gilbert & Cates, L.L.P., 2501 Cedar Springs, Suite 750, Dallas, Texas 75201; (214) 965-0090, website: lyongorsky.com or e-mail Bob at: bgorsky@swbell.net. |