Under Texas law, Federal Rules of Bankruptcy Procedure often quoted as the bankruptcy rules govern the statutory requirements in filing for bankruptcy procedures. Dedicated courts are made in the state in order to cater to such bankruptcy proceedings.
There are many reasons why Texas residents may encounter hard times financially. Medical bills, the costs associated with the loss of a loved one, credit card debt, and many other causes can bring financial ruin to individuals and families. Those who may have found themselves buried in debt may want to consider filing for bankruptcy. Chapter 7 of the bankruptcy code has certain unique advantages, and when a debtor has qualified for Chapter 7 through a means test, several doors may open up, which can help an individual with the heavy burden of debt.
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.
When debt becomes too heavy a burden, many Texas residents seek relief by liquidating assets. Bankruptcy with asset liquidation in order to repay creditors is known as Chapter 7 bankruptcy. To file for Chapter 7 bankruptcy, certain criteria must be fulfilled.
While an individual or a business facing insurmountable financial challenges has the option of filing for bankruptcy, the type of bankruptcy petition can vary based on the circumstances. A Chapter 7 bankruptcy, as Tyler, Texas, residents probably know, requires debtors to meet certain criteria relating to their income level. Such a debtor can either be an individual or a business, although in some cases the debt may have originated from personal, as well as business activities.
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.
Whether it's to buy a quick bite or for something more substantial credit cards provide convenience shopping to the consumer. Credit cards can be used in person or to indulge in online shopping.. But the ease and convenience of credit card can sometimes come with consequences.
There are still many individuals and businesses in Tyler, Texas and the rest of the country that are recovering from the financial impact left by the recession that swept across the globe a few years back. As a result, every month a number of individuals and businesses in Texas file for bankruptcy after failing to cope with the challenges posed by the financial meltdown.
Life comes at us in unexpected ways. Some people suffer unexpected health problems, or the untimely death of a spouse. As we know well in Texas, others find themselves in the path of a natural disaster that destroys a home and devastates a community. And in a tough economy, many millions of Americans have had to deal with an unanticipated loss of a job, foreclosure and bankruptcy.