Many families in Texas struggle with credit card debt. Across the U.S., Americans owe about $905 billion in credit card debt. That works out to around $15,654 per household. While this seems like a lot, other debts are even worse. The total amounts owed on mortgages, car loans and student loans are in the trillions.
Many people living in Texas struggle to pay their bills. While some financial difficulties are temporary, other individuals and families find it impossible to catch up. In these cases, bankruptcy may be an appropriate option.
When Texas residents or others file for bankruptcy, they generally must disclose all of their assets. One woman who failed to disclose that she had $3,500 of cash on hand had her Chapter 7 discharge blocked. The woman said that she didn't disclose the cash as an asset because she needed it to pay rent and other expenses. After hearing this, the bankruptcy trustee argued that the woman had lied under oath.
If you are preparing to file for bankruptcy, you are also probably worrying about which assets you can keep and which you will lose. Exemptions are key, and Texas provides filers with some of the most generous exemptions in the nation.
Texas residents and others who file for bankruptcy may believe that they have no chance of buying a home. However, this is not necessarily the case. For many, the biggest obstacle standing in their way of home ownership is time. In some cases, a person may need to wait four years after the date that their case is resolved before they can buy a home. A minimum two-year wait is imposed by Fannie Mae while a minimum one-year wait is imposed by the FHA.
Texas residents who have been impacted by natural disasters may accumulate debt while trying to cope with the aftermath. As simply paying for food and a hotel room after fleeing from home can cost hundreds of dollars a day, the expenses could be tough to manage. Those who have accumulated debt in a disaster might want to talk to their creditors about special payment arrangements.