Brownsville Texas Bankruptcy Legal Blog

It is easy for expenses to sneak up on a Texas resident. A cup of coffee here, a quick lunch there and a few unplanned purchases can easily add up to a significant amount of credit card debt over time. If an individual fails to notice how much of a problem it is until it is too late, debt collectors could already be calling.

How a consumer deals with these calls matters. Avoiding them could only make matters worse. Instead, it might be more useful to make contact proactively in order to see whether an agreement can be reached regarding the balance owed. Another mistake that many people make is agreeing to pay the balance that the debt collector says is owed. It would be better to first request this information in writing to be sure that is actually the true balance, and to make sure that it is actually a debt owed by the person being called.

It seems as though debt sneaks up on Texas residents. Their lives are busy, and even though it may take months for the situation to become dire, many wake up one morning to realize they are overwhelmed by their financial situations. One of the debt relief options they may pursue is the filing of a Chapter 13 bankruptcy.

Before embarking on the journey, it may be a good idea to understand that not all debts can be discharged through this or any other chapter of the Bankruptcy Code. Even so, that does not mean that it will not achieve a Texas resident's goals regarding obtaining a fresh financial start. For instance, an individual still owes alimony and child support despite bankruptcy, including back payments.

The odds are that you have some sort of debt just like many other Texas residents do. You may also be like others who consistently perform the same balancing act each month just to stay above water. However, when that balancing act becomes too much to bear, you may turn to Chapter 7 bankruptcy for relief, just as many people before you.

Why do people file for bankruptcy? Obviously, they file for a variety of reasons, and in some cases, more than one reason leads to the need for the type of relief that this debt relief option provides. In other cases, one cataclysmic event leads to overwhelming debt. For instance, few people are financially prepared for a medical crisis. Not only do the medical bills pile up (even with health insurance), but the loss of income after vacation and sick days are used up, if you are fortunate enough to have them, can be devastating to a family's finances.

Finding out your credit is poor does not mean you suddenly turned from a good person to a bad person. The thing with bad credit is, it can make life a little more frustrating, but it is manageable. First off, with a lower credit score you will find it will be harder to be approved for loans and credit cards. If you are approved, you are faced with high interest rates and fees.

If you have this much trouble getting a credit card, then you may want to give up on the pursuit of purchasing a home. However, there is no need to turn your back on becoming a homeowner. There are ways to have bad credit and get a mortgage.