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.
There are many people in Tyler, Texas and other parts of the country, who are still feeling the aftereffects of the economic downturn that strained the finances of corporations and individuals all over the world. And although various reports suggest that the troublesome financial situation is drawing to its close, many people in Texas still file for Chapter 7 bankruptcy or Chapter 13 bankruptcy protection every month.
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.
According to the U.S. Supreme Court, the purpose of our nation’s Bankruptcy Code is to help the “honest but unfortunate debtor” get a fresh financial start, and the vast majority of people who file for personal bankruptcy under Chapter 7 and Chapter 13 fit just that description.