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.
Cash seems to be quickly becoming obsolete as more and more consumers turn to plastic to pay for their purchases. While this may not be a big shift in spending when debit cards are used, the truth of the matter is that credit cards continue to be used at a significant rate. Many consumers enjoy putting off paying for their purchases, while at the same time earning rewards. Although this can be a benefit to using credit cards, the debt accumulated through this purchasing style can quickly get out of hand, thereby leaving an individual with insurmountable debt.
Texans who have to eagerly await their next paycheck just to make ends meet know the stress and worry that accompanies living paycheck-to-paycheck. There are many events that can force you to live this way, including the loss of a job, cut hours or unexpected demotion. The onset of an unexpected medical condition can also leave you struggling to get the money you need to pay the bills. Once you start falling behind on these bills, the overdue notices can quickly snowball, leaving you in a hole that only seems to get deeper and deeper.
Millions of Americans live paycheck-to-paycheck. Most of these individuals are one financial crisis away from financial ruin. In an attempt to bridge their financial shortfall, a lot of struggling Americans turn to payday loans. In fact, about 12 million people take out one of these loans each year. While they can be quick to obtain, thereby making them enticing, they usually carry exorbitant interest rates that can be as high as 450 percent. Even with principal loans starting at as little as a couple hundred dollars, these loans can quickly spiral out of control when they are not paid back quickly.
It's practically inevitable that at some point in your life you will need medical care. Some Texans find themselves requiring more extensive treatment, though, which can lead to larger medical bills. Many hoped that the Affordable Care Act, passed during the Obama administration, would help curtail those costs and make affordable medical care accessible to all. Yet, although the legislation hoped to reduce the risk of financial ruin caused by medical expenses, the fact of the matter is that Americans are seeking medical-related bankruptcy with all too common frequency.
Filing for bankruptcy is often seen as a last-resort option for Texas residents struggling with debt. However, many people who have filed for bankruptcy appreciate the opportunity to start over financially and move forward with their lives. Chapter 7 bankruptcy is often one of the most popular forms of bankruptcy for individuals, as it discharges unsecured debts, offers automatic protection from collectors and creditors and allows people to complete the filing process in only 3 to 6 months. However, this type of bankruptcy is generally reserved for lower-income households who truly have no other options.
No one ever wants to file for bankruptcy, but for Texas residents who are struggling with debt, it may be the best option. The most common form of bankruptcy for individuals is Chapter 7 bankruptcy. While Chapter 7 bankruptcy will eliminate many of your debts, there are certain debts that will not be discharged.
Celebrity chef Mike Isabella, who got his start on Top Chef, has filed for Chapter 7 bankruptcy on behalf of his parent company, Mike Isabella Concepts. By filing for Chapter 7 bankruptcy, Isabella is closing the doors to his six remaining restaurants and liquidating its assets to pay off debts.