Tyler Texas Bankruptcy Law Blog

Chapter 13 bankruptcy is one option to consider for those seeking debt relief. Chapter 13 bankruptcy provides one option that may help address debt-related concerns while also protecting the filing party's property.

Chapter 13 bankruptcy is considered a reorganization bankruptcy that allows the filing party to reorganize their debt rather than liquidate assets to repay creditors. Different bankruptcy options fit different situations so it helps to be familiar with what all the options are when seeking debt relief. If the filing party earns more than the median income in their state, based on their last six months of income, they will need to file for Chapter 13 bankruptcy protection, whereas, if they do not, Chapter 7 bankruptcy protection might be the best option for them.

Tyler residents aged 65 and older who are struggling financially are not alone. Data show that more senior citizens are seeking debt relief by filing for bankruptcy than ever before.

The reasons for this, according to a recent study, go deeper than just the fact of an aging population. They have to do with the ways in which older Americans are saddled with the burdens of rising health care costs and, at the same time, fixed incomes. These factors have led to significant increases in both the number of older Americans filing for bankruptcy and the number of senior citizens with cases currently in bankruptcy proceedings.

One of the things Tyler, Texas, residents frequently are willing to take out a loan on is a new or gently used car. After all, relatively few families are blessed with having the thousands of dollars in savings that it takes to purchase a vehicle when they need one, and cars are an essential part of daily life for most residents of this city.

The bad news is that a car loan, much like a mortgage, is what is called a secured debt. This means that in the event of financial hardship and bankruptcy, a Texan may well be able to escape a lawsuit over the car loan, but they still have to return the vehicle or make the payments, payment which, oftentimes, put a real pinch on already tight budgets.

Owning a car is a necessity for most Tyler residents these days. It's not unusual for families to need more than one car, when parents need to drive to work, take the kids to schools and activities, and run errands at nights and on the weekends. With those cars frequently come auto loans, and when borrowers run into trouble with their loan payments, repossession can result. Let's take a look at some basic auto loan and repossession facts according to the Consumer Financial Protection Bureau.

Lenders do have the right to repossess your vehicle if you fall behind on your payments. They must do so without "breaching the peace." This means they cannot break into your home or garage to get the car, they cannot threaten you and they cannot physically force you to surrender the car if you refuse. If they do breach the peace during repossession, you won't necessarily get your vehicle back, but you can sue them. An award for damages could reduce the amount you will still owe your lender.