If you're in credit card debt, you're in good company. Americans, as a whole, hold more than $1 trillion worth of credit card debt. The average American with credit card debt holds nearly $10,000 in credit card balances each month. Last year, those who made only the minimum payments each month ended up facing more than $1,000 in interest fees, on average. These interest expenses are expected to rise as the economy continues to improve and the Federal Reserve hikes interest rates.
The student loan industry is massive, and as a result, many Texans find themselves graduating or leaving higher education programs with an enormous amount of debt. With job prospects uncertain for many of these individuals, making their student loan payments can become challenging, even downright impossible. When this happens, an individual may wonder if he or she can turn to bankruptcy to help alleviate this debt burden.
Nowadays it seems like everyone is out to make a quick buck. Unfortunately for Texans, this often means that they are unfairly taken advantage of by aggressive business practices. When these individuals struggle to make payments on their debts, creditors might harass them in an attempt to recoup what is owed. For many, the fight to climb out of debt and maintain their life can lead to a cycle of more debt and more hardship. Payday loans may be taken out, predatory car loans sought out, and credit card debt accumulated.
Financial uncertainty can hit anyone at just about any time. The sudden loss of a job, unexpected medical expenses and divorce can all lead to monetary hardship. But there are ways that Texans can be taken advantage of, which can cause them to be more susceptible to overwhelming debt burdens.
Texas residents who run into financial trouble will undoubtedly stop and consider the services offered by companies that promote themselves as being skilled with debt relief. There are a litany of these businesses and they use heavy advertising tactics, making promises that are difficult to believe to be true. These companies say they can help with the debt through renegotiation, settlement or by altering the terms of the agreement between debtor and creditor. Understanding how debt relief or debt settlement companies function is important before taking this step over personal bankruptcy.
Texan residents who receive a discharge in bankruptcy as a form of debt relief are not immune to again experiencing financial problems in the future. Simply because there was a successful filing of a Chapter 7, Chapter 11 or Chapter 13 bankruptcy, it will not automatically mean that the person will be safe forever. Circumstances can arise in which the person will need to file for Chapter 7 bankruptcy again. A question that comes up for these individuals is whether they are able to receive a second discharge in a later case. Knowing how this works and the rules that the courts have put into place is an imperative before moving forward.
For Texans who are saddled with unpaid bills due to unemployment or some other personal circumstance, one of the biggest concerns they will have is whether or not their home will be foreclosed upon. Given the uncertain economy throughout the country, a vast number of people have been confronted with the reality of foreclosure. However, it is possible to stop foreclosure with help from an attorney.
There are certain factors that a Texan who is filing for individual bankruptcy might not fully understand. This, however, does not make them any less important. One of the biggest reasons a person will file for bankruptcy is to get debt relief and address financial challenges. With that in mind, the debtor needs to understand various aspects of the bankruptcy discharge and how it works.
There are various aspects of personal bankruptcy that Texans might not know about as they consider and move forward with the process. One that is often understated and relatively unknown is the reaffirmation agreement. Knowing what this is and what it entails can be an important factor when seeking debt relief in bankruptcy. With reaffirmation, the debtor has the right to promise to repay a debt even if it has been discharged. There could be numerous reasons for doing this.
Getting frustrated with attempts by debt collection companies to collect a debt that you may not even owe? If so, you are not alone.