Due to their lack of financial success or the cost of living, many Texas residents may find themselves in a tight money spot. Debts can be a tremendous burden on an individual and reduce the person's quality of life. Hounded by collection agencies and a falling credit score, a debtor can choose to opt for Chapter 13 bankruptcy in order to get a fresh start and reorganize the person's finances.
Filing for bankruptcy is sometimes unavoidable for Texas residents. When it comes to deciding whether to file for bankruptcy, people may be concerned about losing their family home to foreclosure and being left virtually penniless. At the law office of Gordon Mosley, we have had decades of experience counseling Texans into better understanding their options in such difficult times.
In Texas, if all of the payments under Chapter 13 of the bankruptcy code are made, a debtor may discharge his or her debts. A debtor may also be allowed a discharge if he or she can certify that all family support payments have been taken care of, including court ordered child support payments, as well as spousal maintenance or support.
As we all know, debts can accumulate over a period of time. This can make it difficult for a person to make ends meet when paying both monthly bills and debt payments. Many people try to save every cent so that they can be out of the debt as soon as possible, but sometimes paying just the interest on the debts can prove to be difficult. Another solution to reducing debt may be to sell their belongings to pay the debts, but again they may brush aside this solution because they don't want to lose their house or possessions.
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.
Most Texans want to have enough money saved in their retirement accounts before they retire. But financial insecurity can lead to an inability to budget and save for a time when a person may not be able to earn. Unfortunately, it seems that many more people nowadays may not be able to save for their retirement due to various financial challenges.
It may seem almost impossible for a person to live without debt. Many people own credit cards and hence have some debt. Many Texans try to pay their debts as quickly as possible, but for some it may prove very difficult to be debt free.
A federal program that helped around 1.2 million homeowners struggling with their mortgages is set to expire this year.
Just like any other major financial maneuver, declaring personal bankruptcy is a decision that should be evaluated carefully. However, people may get to the point that they simply need a strategy to get out of debt. For those who qualify, Chapter 13 bankruptcy might be the right option.