Texas consumers are likely to see monthly debt service payments increase following an interest rate hike by the Federal Reserve. Homeowners, home equity borrowers and individuals who use credit cards will pay more for their revolving loans as a consequence of the quarter-percentage point increase of the short-term key rate.
Texas residents may have heard that student loan debts cannot be discharged. However, there are some unusual circumstances in which this may be possible. For example, if a school closes while a student is enrolled or within 120 days of the student leaving the school, the student loans may be discharged. Another unusual situation is if the college is found to have violated state laws. It is necessary to prove that the violation was related to the student's education or loans such as taking out loans based on deceptive information.
Texas residents who are struggling with credit card debt but still have good credit might consider a no-interest balance transfer credit card to consolidate their debt. Another consideration might be getting a personal loan if the interest rates are lower. They could also apply for a home equity loan or line of credit.
There seems to be some sort of impression on the internet that bankruptcy follows some kind of lavish spending spree that got out of hand. While oppressive credit card balances can cause a great deal of strife, most consumers work hard to manage their bills. The days of cash only purchases, or the use of a checkbook on a daily basis with the regular balancing process, have given way to the use of plastic.
If you're thinking of filing for bankruptcy, don't be ashamed. Declaring bankruptcy can wipe the slate clean and give you the fresh start you need to manage your finances. Learn how you can use bankruptcy as a tool to become debt free and develop positive habits.
When Texas residents pursue Chapter 13 bankruptcies, their court-approved payment plans may be modified in certain situations. Some courts have ruled that such modifications require a substantial change in circumstances, but a judge on the U.S. Bankruptcy Court for the Western District of Arkansas found that only two circuit courts have addressed this issue. The case involved a couple who requested a modification after surrendering a financed vehicle, and the judge ruled on May 26 that a substantial change in circumstances was not needed.