Creditors can be overzealous in their debt collection practices. Fortunately for consumers, state and federal laws, such as the Fair Debt Collection Practices Act, regulate many of these creditors' aggressive tactics. Yet, creditors often overstep their bounds, leading to harassment. Unfortunately, the debt collection industry is looking to increase its access to consumers by pushing for laws that allow for text and email communications.
There are basically three overall categories that apply to every Texas resident's financial situation. There is a global economy, a local economy and a personal economy. Any or all of these economic issues can affect your daily life and either make or break your financial portfolio. There's a natural ebb and flow involved with finances. In short, you might have some months or years that are better than others.
There are many ways that individuals can find themselves saddled with debt. In many cases, though, Texans are forced to turn to credit cards to cover unexpected costs, whether they be car repairs, medical bills or home maintenance. While these cards provide quick access to a line of credit, individuals who use them can find themselves hurtling toward a seemingly inescapable debt spiral.
Far too many Americans struggle with debt. While some of this debt is due to out of control spending, in many instances, it is caused by an unexpected event, such as the onset of a medical condition or the losing of a job. Many people who wind up in this position struggle to try to dig themselves out of the hole, but the financial obligations often prove overwhelming. Bankruptcy provides these individuals with a very real debt relief option. However, many Texans find themselves wondering how it will affect them and their financial health in the future.
Dealing with debt is not easy; however, there are ways and mechanisms one can address these matters. Take, for example, Chapter 7 bankruptcy, This is often referred to as liquidation bankruptcy. This is because the Chapter 7 process requires an individual sell off, or liquidate, a significant portion of his or her assets in order to pay off creditors. There are some exemptions to this liquidation so that debtors don't have to start over from scratch post-bankruptcy. However, as those individuals who successfully complete the Chapter 7 bankruptcy process move on with their lives, they may be surprised to find that they still owe some debts. This is why it is critical to fully understand the effect of a given bankruptcy option before pursuing it.