Are you one of the many Texas residents struggling to meet their debt obligations? It is okay. It happens. If you are in a financial pickle, you may want to know what debt relief options are available to you. The truth is, there may be a few options, depending on the specifics of your situation.
Harassing calls from debt collection agencies are not uncommon. Unfortunately, a large number of people experience these calls for debt that they don't even owe. According to the Consumer Financial Protection Bureau, 40 percent of all reported complaints about debt collection practices are the result of attempts to collect on debt that the consumer does not even owe.
In Texas, every debtor should make sure that they are well versed on the existing body of bankruptcy laws before filing for Chapter 11 bankruptcy. There is nothing as risky as making uninformed decisions when it comes to something as critical as bankruptcy.
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 are aware that sometimes a business can face difficult financial times. In such situations, the business owners try their best to make it thrive. However, once it is certain that they won't be able to clear of the business debts they have to decide on the future of their company.
Not many Texans are free of debt. In fact, not many students graduate debt free, and those who do are considered lucky. For example, consider the situation of a woman who earned her degree in 2003 without incurring any debt. She got married, bought a house and a car and everything seemed to be going well. However, she then lost her job in 2008.
Business owners in Texas would agree that a business may close because of its inability to generate profits. While closure can be difficult for the business owner, matters can become worse if the business is in severe debt with bankruptcy being a possibility in the near future. During such times, many business owners have no other option but to file for bankruptcy and seek reorganization under Chapter 11.
When in deep financial trouble, a Texas resident's primary concern is the possibility of losing their valuable assets such as a home, vehicle, real estate or other such significant assets should they file for bankruptcy. Additionally, the social stigma associated with bankruptcy can be quite distressing. However, if that person still has a steady source of income, he or she can avoid foreclosure, repossession or loss of other assets by filing for Chapter 13 bankruptcy.
Residents of Tyler, Texas, may have heard about individuals and businesses going bankrupt or filing for bankruptcy and thereby recovering from debt. However, not many may realize that this is rarely as simple as it sounds. There are different kinds of bankruptcy petitions for which debtors may or may not qualify, depending on the nature of their financial difficulty. Filing a bankruptcy petition does not automatically imply a discharge of debt.
The average American, whether in Tyler, Texas, or elsewhere, can rack up debt in a number of ways. Often, no notice is taken of credit card bills until the amount becomes exorbitant. Or, an unexpected medical emergency can result in significantly high expenses. It is important to ensure that there are enough funds to repay such expenses, or else a person may be faced with the possibly of selling-off of the person's assets to pay the bills.