When a Texas resident files for bankruptcy, it can be a scary and uncertain time. How a bankruptcy affects a person's life and assets depends heavily on the type of bankruptcy they file. While there are many questions a person should ask before choosing a bankruptcy type, one important question is what happens to investments.
Consumers in Texas will soon find it easier to file lawsuits against banks or credit card companies as part of large, class legal actions. The Consumer Financial Protection Bureau issued a new rule on July 10 that stops these consumer finance corporations from using arbitration clauses to prevent such lawsuits.
Personal bankruptcy filings have been increasing. According to statistics from the United States bankruptcy court, over 1.5 million people file annually. You may be considering resolving your debt problems this way, and clearly you are not alone.
Texas residents may be interested in a bankruptcy case in which the trustee accused the debtor of abusing the process in order to alleviate his debt. The court ultimately decided in favor of the debtor, claiming that paying the expenses of two homes did not constitute abuse.
A bankruptcy court has ruled that secured creditors must file proofs of claim on time if they choose to file them. The specifics of the ruling may be enlightening to Texas residents who have filed for Chapter 13 bankruptcy protection. Chapter 13 gives individuals who have a regular source income the opportunity to restructure and relieve debt without requiring them to give up their property. Debtors must provide the court with a plan to repay debts using future income.