Personal bankruptcy cases in Texas have risen at an exponential rate in the recent years. The primary reason for this phenomenal rise in bankruptcy cases is ever-increasing consumer debt. The nightmare of dealing with bankruptcy is known only to individuals who have suffered, or are suffering through it. It becomes particularly complicated when a debtor has a family to raise.
Consumer debt has exploded in Texas and the rest of the nation. An individual suffering under heavy debt due to loans and credit card debt may seek solutions to this problem under the state's insolvency laws. Although bankruptcy is considered to be a last resort, it does offer debt relief.
Texans may have read a 2013 report saying that an average American is currently more than $225,000 in debt. While bankruptcy filings declined last year, it is still relatively easy to miss a house or credit card payment due to unforeseen circumstances, such as loss of employment or family emergency. Debt accumulation may be an unavoidable choice.
Sudden loss of assets to bankruptcy can be quite painful. However, declaring bankruptcy may be necessary due to various factors, such as sudden illness and medical bills associated with illness or sudden termination of employment, an ugly divorce or uncontrollable credit card debt. Foreclosure and bankruptcy are the two financial disasters that most every Texan wants to avoid during the course of the person's life.
Although the economy of Texas and the rest of the United States has improved in the last couple of years, many people are still feeling the effects of the recession. It is evident because the U.S. Courts System registered 1.07 million bankruptcy filings in 2013. The figure was however lower than the 1.22 million bankruptcies filed in 2012.
Credit cards make purchasing products easy. With a simple swipe of the plastic, it is possible to purchase just about any product without necessarily having the funds to pay for it. It is because of this ease, perhaps, that so many in Texas and throughout the U.S. struggle with credit card debt. Credit card debt can accrue quickly and once someone is caught in a web of debt, it is oftentimes difficult to escape.
Financial planners usually recommend that American workers consistently contribute a portion of their wages to savings and retirement plans. However, a recent survey suggests that many Americans might be operating on a very thin black line, without much financial cushion in the event of an emergency.