There are certain bankruptcy chapters that are well-known to the layperson in Texas and across the country. There are other potential options that many eligible people might not realize can be used. One is Chapter 12 bankruptcy. This is a specific chapter that is available for family farmers or family fishermen who earn a regular annual income from those endeavors. This allows people who meet the criteria to be placed in these categories to use this bankruptcy chapter to deal with financial challenges, a struggling economy, unemployment and stop foreclosure on their home.
Many Tyler residents never imagine that they will need to consider filing for bankruptcy. For a large number of people, personal bankruptcy also equates to a personal failure. They do not want to be "that person" who doesn't pay his or her debts and decides to find a legal way of avoiding them. However, the reality is that there are numerous reasons why a person might face financial difficulty. There could be unexpected life changes, a failed business or medical expenses that make it necessary. It is only then that they realize that bankruptcy is a strategy rather than an avoidance.
At times throughout the past decade or so, the struggling economy in Tyler, and across the country, has meant that many people needed to seek various methods of debt relief. Although Texas's economy has done well recently, many people still find themselves in a troublesome financial situation. While filing for bankruptcy is always an option regardless of their personal circumstances, there are certain issues that many people do not fully understand when they make the decision to eliminate debt via bankruptcy. For example, many might not know what a discharge is and when it is completed.
Residents of Tyler, and other parts of Smith County, probably know that Texas is among the nine community property states in the country. In a community property state, both spouses have equal rights over assets that are acquired during the course of their marriage. The same rule applies when it comes to debts. Therefore, it is important for all Texas residents to remember that in the event of a personal bankruptcy filing, those community property laws play a major role.
Several Texas students who wish to pursue advanced studies in order to get better jobs often do not have sufficient funds to pay for their education. In addition to the various odd jobs that a person does in order to earn money to pay for their education, student loans are one of the most sought-after funding options for students.
Attorney Gordon Mosley has worked on personal bankruptcy cases for decades. For Texas residents who wish to file for personal bankruptcy, it is not only a financial and legal challenge but can also be personally and socially stigmatizing. A person may be compelled to file for personal bankruptcy due to the various debts that he or she has incurred for a variety of reasons, such as student loans, a mortgage or a car loan.
A major concern that many people in the Tyler area may have when they are planning to file for personal bankruptcy is how the filing will affect the debtor's eligibility for loans and mortgages in the future. While it is true that a bankruptcy filing remains on a person's record for 10 years, it does not necessarily affect the person's eligibility for loans and mortgages as long as the person is able to rebuild and maintain healthy credit after obtaining the bankruptcy discharge.
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.
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.