Brownsville Texas Bankruptcy Legal Blog

Many Texas residents find themselves dealing with overwhelming debt, but are unsure how to resolve the issue. One of the best things to come out of the Great Recession was the increase in acceptance of bankruptcy as a viable debt relief option. Even so, people still have trouble with the concept of filing for bankruptcy or have certain barriers to using it.

If you recently incurred new debt or paid off some old debt, you may have to wait a minimum of six to 12 months before filing. You may have a moral objection to filing for bankruptcy since you believe it is your responsibility to pay your debts despite the hardship. You may believe that because you only have one or two debts that you do not need to file bankruptcy. This may actually depend on the type of debts.

Many people think they are out of options when they receive a Notice of Delinquency from their mortgage lender, but the reality is that there are some steps that can be taken to help save the family home. Texas individuals and families facing a foreclosure should work to understand the process and laws in detail in order to respond in the best possible way. With the right information and support, slowing down the process of foreclosure may be a possibility.

The first thing Texas individuals should do when facing foreclosure is to learn as much as possible about state laws related to mortgages and delinquency. Speaking with a lawyer is often the most efficient way to gather this information. A lawyer can also help to guide a person through their possible options under Texas law.

Bankruptcies in the United States are technically down compared to last year, but experts say this news comes with a caveat. The recent decline of 1.8 percent is the smallest in years, showing that things have somewhat plateaued since the recovery period following the Great Recession. With 790,830 bankruptcy filings last year, Texas individuals considering Chapter 13 or Chapter 7 bankruptcy are far from alone. Here are a few things people should know before taking this step.

The first thing that consumers should do when choosing to file for bankruptcy is to make a list of all debts. Neglecting to list a debt in a bankruptcy filing may prevent someone from getting the fresh start they are hoping for. Another big mistake people make is waiting too long to file for bankruptcy, which could put them in a position where their food or housing situation becomes vulnerable.

Americans may face medical debt even with health insurance for a variety of reasons, from high deductibles to uncovered items to billing errors and insurance disputes. Regardless of the reasons for medical debt, Texas residents can face consequences if these bills go unpaid. Many may wonder how delinquent medical bills may affect their credit.

Like other bills, medical expenses can affect credit when left unpaid. In fact, one-fifth of Americans surveyed by Consumer Reports noted that their credit had been negatively affected by unpaid health care bills. A lower credit score can make it harder to get a loan, rent a property or in some cases be approved for a job.