In East Texas, filing for bankruptcy may be confusing for individuals struggling with debt. The decision to file for bankruptcy is possibly one of the most difficult financial decisions a person can make and it is often accompanied by mental distress, extreme apprehension and concern for the financial future.
Residents of Tyler, Texas, would agree that no person intends to miss payments on the house, car or other items by choice. However, circumstances, such as sudden medical expenses, sudden job loss or a significant cut in salary, may lead to a difficult financial situation and can result in missing payments.
A Texas resident who is deep in debt is often desperately seeking relief. While filing for bankruptcy is a fairly common option, not many people know alternatives to bankruptcy exist. In such situations, the first alternative step is to identify a credit counseling agency. It is important that a debtor makes the right choice when finalizing a credit counseling organization because an error in judgment can prove costly and have many long-term consequences.
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.
While some people from Texas get into debt when faced with troublesome financial situations, for others, financial mistakes may be what gets them into financial hot water. Many of these conditions can lead to a stressful financial situation, and very few people can repay their debts immediately. Many who face default have to face additional fees and other charges, which can cause their debt amounts to rise drastically.
As many Texas residents know, the two most common methods of bankruptcy are Chapter 7 and Chapter 13. Filing for bankruptcy under either of these two chapters requires an in-depth understanding of bankruptcy laws.
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.