When people in Texas are dealing with insurmountable debt, collection calls or lawsuit threats, they may not be sure which step to take. Bankruptcy may provide debt relief, but many people are worried about filing because they are concerned about potential other effects on their lives. Bankruptcy does have a serious impact on a person's credit report. However, many people are worried more about the potential for effects on other areas, especially their ability to find and get a job. They may know that some employers, insurance companies and others review credit reports when making decisions.
After a debtor files for bankruptcy in Texas, creditors' attempts to collect will be automatically halted under a stay. One reason why many people seek the protection of Chapter 7 bankruptcy is because it's becoming difficult or impossible to deal with creditor demands, which include lawsuits and threatened actions, repossessions or even constant collection calls. Under the automatic stay, creditors that want to proceed with an action like a lawsuit, auto repossession or lease termination need to first address the situation with the bankruptcy court. Those that do not may face significant penalties.
Texas consumers who feel overwhelmed by debt may want to file for Chapter 7 bankruptcy. The first step for determining qualification is the means test, which uses the median income for the state. Most of the time, making less than this amount means the person can file.
Having the lowest possible housing costs may help Texas homeowners who recently filed for bankruptcy keep their finances under control. Although it might have been impossible to refinance before the bankruptcy, lenders often offer refinancing options to those who have either discharged their debts through Chapter 7 or reorganized them through Chapter 13.
Overwhelming medical bills are causing people in Texas and nationwide to burn through their retirement savings and rack up massive debts, according to a new report by TD Ameritrade. In fact, the financial services firm found that 137 million Americans have faced financial hardship from medical expenses in the past 12 months.
When Texans are facing overwhelming debt, they are frequently unaware of what to do next. Many might be reluctant to consider personal bankruptcy. There are common misconceptions about the process. It is imperative to know that it can be a useful strategy to clear debt and start over.
Student loans are generally not dischargeable in bankruptcy, but there are circumstances under which a person may be able to have them discharged. For people in Texas who are struggling to make their student loan payments, the most common bankruptcy options are Chapter 7 bankruptcy and Chapter 13 bankruptcy. In order for student loans to be discharged, the bankruptcy petitioner must establish that repayment would constitute an undue hardship. The Department of Education has made efforts to create a concrete definition of the term, but undue hardship is still decided on a case-by-case basis.
A research study from the American Bankruptcy Institute indicates that people in Texas and across the country have double the likelihood of filing for bankruptcy if they have had a gap in health insurance coverage of at least two years. The study included information from the Bureau of Labor Statistics for more than 12,000 people and found a strong link between consumer bankruptcy filings and health insurance coverage interruptions.
In Texas and across the United States, millennials are experiencing difficulties with their credit card debts. Millennials frequently become tempted by credit card perks. Consequently, many millennials are delinquent in the payments on their credit cards. The delinquency ratio was not as severe in previous generations. Many young people formerly viewed stock trading with wary eyes in the past. These individuals were previously known for their frugality. However, current studies conducted by the Federal Reserve Bank of New York shows that many young consumers have lost control over their spending habits.
A rule proposed recently by the Consumer Financial Protection Bureau would allow debt collectors to contact consumers in Texas a lot more frequently. Collectors could make phone calls up to seven times each week and they would be allowed to send unlimited emails and text messages. Once collectors speak to the consumer though, they would not be allowed to call again for one week. This rule change would represent the first major update to the CFPB rules in 40 years.