Being overwhelmed by debt creates a constant struggle for many Texas residents. Phone calls, threats of lawsuits and more only serve to make the situation worse. For this reason, many of them decide to file for Chapter 7 bankruptcy, partly in order to take advantage of the automatic stay, which bars creditors from engaging in collection activities during the proceedings.
This is not an easily answered question, but Texas residents considering their debt relief options need to understand the substantial risks involved in debt settlement. Far too many people have ended up in the same or worse financial circumstances after trying this option. In fact, many end up filing for Chapter 7 bankruptcy protection, and some admit they should have done so in the first place.
Financial problems are nothing unusual for consumers here in Texas and elsewhere. Debt can get extremely overwhelming and, for many people filing for Chapter 7 bankruptcy, could provide relief from the situation. What makes several of them hesitate is thinking that doing so would end their financial futures, but that is not true. In fact, it does not have to be an end, but instead, a beginning.
By the time many Texas residents realize they have financial problems, the situation is already overwhelming. If you are one of these people, then you know how stressful, frustrating and even frightening the situation can be. You want to file for Chapter 7 bankruptcy, but you are not sure how to proceed. Fortunately, you do not have to go through the process alone.
Finding a way to resolve financial difficulties can help relieve the stress that most Texas residents feel under these circumstances. For many, filing for Chapter 7 bankruptcy is the right debt relief option, and they expect to walk away with a fresh financial start and fewer debts. However, if not careful, they could jeopardize receiving the discharge they need.
It is nearly impossible for Texas residents to predict when they will encounter serious financial difficulties. Perhaps a consumer had this problem in the past, and used Chapter 7 bankruptcy in order to gain a fresh financial start. Things may have gone well for some time, but then something happened to undo that progress. Perhaps an injury or illness, a job loss or a divorce caused another financial crisis.
Getting behind on financial obligations happens to many people, including Texas residents. These issues often arise out of some sort of crisis that drains financial resources such as an illness, an injury or job loss, among other things. When this happens, some creditors may attempt to get the money they are owed through a bank levy or a garnishment, both of which could be stopped, at least temporarily, through a Chapter 7 bankruptcy.
Numerous Texas residents pay their way through college with student loans. While in school, most of them had dreams of making enough money to support themselves and repay their loans without a problem. Then, reality set in, and they realized that paying for those loans is not as easy as they thought, and perhaps were told, that it would be. Most people are told that filing a Chapter 7 bankruptcy does nothing for student loans, but that may not always be the case.
Many Texas residents can attest to the fact that struggling with debt is no picnic. Many households reach the point where they can barely afford the necessities, let alone pay any discretionary bills. At this point, they probably attempted to deal with the overwhelming amount of debt through other means before coming to the conclusion that filing for Chapter 7 bankruptcy would be the best resolution, but the unknown could be intimidating.
If someone tells a Texas resident otherwise, he or she should probably run the other way. While most people do receive a discharge from a Chapter 7 bankruptcy, there is no guarantee it will happen. However, knowing the circumstances under which one may not be given could help increase the likelihood of receiving one.