Many Texas residents are currently facing serious financial crises. If you're one of them, you may be worried that, if you don't get things back on track soon, your home or other possessions will be at risk. It's not uncommon for finances to fluctuate according to circumstances in life. You may have some years that are financially strong and stable, and others where it's difficult to make ends meet.
When people discuss what types of issues have led to financial distress in their lives, they often have a lot in common. There tends to be several main issues that most often prompt serious financial problems and credit card debt for U.S. residents. Most financial crises are temporary, so it's always best to try to remain calm and research what types of options may be available to help rectify the situation.
Problem issues for many Texas residents
Using a credit card when you have to make a purchase that you aren't prepared to pay for with cash is a modern convenience that allows many people to own items they would otherwise not be able to afford. However, if you don't pay off your balance every month, you can quickly accrue debt.
Unpaid credit card debt is one of the biggest finance problems people in this state and most others face. Perhaps you needed to use your credit card to help pay medical expenses or because you lost your job and needed to find some way to keep food on the table. You're definitely not alone in your struggle.
More difficult to qualify for Chapter 7 bankruptcy
Nearly 15 years ago, the government enacted laws that made it more difficult to qualify for Chapter 7 bankruptcy. The new system requires you to pass a means test before submitting a Chapter 7 application. This test measures whether your current income is at or below the average household income in your state. If you earn more than that, you cannot apply for this type of debt relief.
You may have other options, though. Chapter 13 bankruptcy is also a means of immediate debt relief, as it allows you to reorganize your finances and restructure your payment plans, but continue to pay down debt while you retain possession of your assets. The best thing to do if you need assistance to determine which course of action would help you overcome your current financial crisis is to talk to someone who is well versed in debt relief issues.