Applying for Chapter 13 bankruptcy in Texas will impact an individual's credit report and may present challenges when it comes to renting or purchasing a home. In most cases, though, it will still be possible to find a place to live in a desirable area even as an individual's debts are restructured and paid down. Depending on the specifics of the situation, a person may be able to purchase a new home after filing for Chapter 13 protection.
Major banks and credit card companies such as Capital One and JP Morgan Chase have reported that credit card delinquencies are up for the second straight month. This marks a reversal from a four-month run in which credit card delinquencies had been falling. It is likely that many Texas card holders have contributed to this trend.
If you are considering bankruptcy, you need to go into it with an open mind — and open eyes. While it can give you a fresh start if you are heavily in debt, it will not work miracles.
Unpaid medical bills confront many people in Texas. According to the Consumer Financial Protection Bureau, 43 million credit reports contain medical collections. Although the credit bureaus Equifax, Experian and TransUnion will alter how they report medical debts as part of two settlements with state attorneys general, consumer advocates expect little relief for consumers.
Some people in Texas may not realize that there are consequences to choosing debt settlement over bankruptcy. For example, they might not know there will be tax to pay on the forgiven debt. They might also think they will lose all their possessions in a bankruptcy, but laws protect against this. Furthermore, debt settlement still has a significant negative effect on a person's credit score.