When Tyler residents are struggling with overwhelming debt, the law provides an option from them to obtain a truly fresh financial start. Chapter 7 bankruptcy allows debtors to eliminate many debts that are unsecured (i.e., not associated with property like a mortgage or a car loan). We say that the debt is discharged -- that is, it no longer has to be repaid.
One of the most stressful and overwhelming aspects of owing a lot of debt is constant contact from creditors and debt collectors. If you are past due on your payments, your creditors do have the right to attempt to collect on what you owe, but there are limits to what they can do.
For Tyler residents who earn some form of income but struggle with debt, there is good news. Chapter 13 allows individuals to file for bankruptcy and obtain a fresh financial start while protecting their assets, as long as they can keep current on a court-ordered payment plan that typically lasts up to five years.
We make efforts here on our Tyler Texas bankruptcy law blog to address the pervasive myth that homeowners will automatically lose their homes if they file for bankruptcy. Especially with Chapter 13, filers can generally keep their homes if they can stay up to date on their repayment plans. Even some Chapter 7 filers may be able to keep their homes, thanks in part to Texas' strong homestead laws.
Among the most iconic brands in pop and rock music is Gibson Guitars. The 114-year-old company makes musical instruments including guitars used by legendary musicians that many Tyler residents instantly recognize, such as Chuck Berry, B.B. King, Jimmy Page, Slash and the Edge, among practically countless others. The company also expanded into consumer audio in recent decades. Today, the company blames that move in part for its decision to file for Chapter 11 bankruptcy.
Becoming a homeowner in Texas may have been one of the most exciting times in your life. Like most other homeowners in your area and throughout the nation, the mortgage agreement you signed may have also become your largest liability. If you chose a 30-year loan, which is typical in most situations, worries about mortgage payments may occasionally interrupt your dreams for building a healthy, happy lifestyle with your family.
In Texas today, almost no one is immune to financial challenges. In fact, the mayor of one Texas town recently made headlines when she filed for Chapter 7 bankruptcy.