Brownsville Texas Bankruptcy Legal Blog

There is no way around the fact that suffering from a sudden and serious illness or injury in this country is an expensive prospect. Like elsewhere in the country, Texas residents who have health insurance often find out that it provides only a false sense of financial security. Most insurers will not cover all of the medical debt incurred, which leaves unsuspecting patients with significant financial struggles as they try to keep up with what medical providers say they still owe.

A recent poll found that of the 91% of the people who responded had health insurance; of those, 53% still struggle to pay their medical bills. People deplete their savings, use their credit cards and may even switch jobs in order to pay for health care. Not surprisingly, the monetary struggles do not end with the patients. Family members may also find their finances affected as they try to help care for ill loved ones. Even paying for basic necessities can become difficult.

Struggling with finances is something with which many Texas residents can relate. Finding ways to deal with ever-increasing prices for basic needs such as food, shelter and transportation often leads individuals to live above their means more out of necessity rather than some design to get into overwhelming debt that could easily lead to Chapter 7 bankruptcy. When credit cards no longer suffice to meet their needs, many people turn to personal loans to get by.

Under these circumstances, it may not be surprising that personal loans are rapidly becoming the fastest growing form of debt. According to Experian, the number of personal loans taken out by consumers from the fourth quarter of 2017 to the fourth quarter of 2018 increased 11.9%. With an average $353 per month payment on an average balance of $15,143, this could quickly become another debt crisis.

Brownsville residents who get behind on their mortgage loan payments could face legal ramifications from their lenders. Upon purchasing a home, it becomes collateral for the loan, which means that failing to make the agreed-upon payments could mean the lender will initiate foreclosure proceedings. During this process, the lender attempts to take possession of the loan's collateral -- the home.

Seizing the property is the short version of what a foreclosure entails. In reality, the lender must go through a legal process. Most foreclosures go through the "judicial foreclosure" process in which the lender files a lawsuit against the homeowner, demanding payment of the remaining balance of the loan or surrender of the home. If the borrower fails to pay within the prescribed amount of time and the court rules in favor of the lender, the home could be sold at auction. Texas law allows for both judicial and nonjudicial foreclosures.

Do you know what will happen if you if you are no longer able to speak for yourself and express your own wishes regarding your medical care? Who will take care of you if you become sick and unable to care for yourself? These are only a few of the most serious questions that people must ask themselves when drafting complete and thorough estate plans.

Care planning is one of the most important aspects of having a complete plan in place, yet many people overlook this step. You may understand why, as it is not pleasant to think about what could happen in the event that you become incapacitated. You may also understand that many people simply fail to see the need to take this step as they are currently healthy and young.