When Texas residents file for bankruptcy, they will be given an automatic stay from creditor collection actions. This may enable them to keep their vehicle while a bankruptcy case is ongoing. However, it may be necessary to pay any outstanding balance owed and keep up with current payments. Those who wish to purchase a vehicle while their case is pending may be able to do so with trustee and court approval.
Texas residents in their late 30s through their early 50s are more likely to have medical debt than any other generation. On average, Generation X owes more than $19,000 in medical debt compared to millennials, who owe $11,622 and baby boomers, who owe an average of just over $2,400. One in five people younger than 65 who have health insurance struggle to keep up with medical costs.
Houston residents earning the metro area's average wage would have to work for 20 months to pay off the city's median credit card debt, and it would cost them $799 in interest to do it, according to recent a report from CreditCards.com. The consumer financial advice website used the 13 percent interest rate to perform the calculations from the Federal Reserve's most recent consumer credit report. This grim statistic makes Houston's average debt burden the third highest in the country, and the figures suggest that families in many parts of the Lone Star State are struggling to cope with their credit card bills.
If you are filing either Chapter 7 or Chapter 13 bankruptcy, you must attend what is known as the 341 meeting.
Generally speaking, Chapter 13 bankruptcy gives debtors the right to modify their mortgages by dividing the debt into a secured portion that is equivalent to the value of the property if it were to be sold today and a portion that is considered unsecure. However, this bifurcation usually occurs with properties that are not the primary residence of the creditor, such as a second home or an investment property. For example, a person living in Texas and filing for Chapter 13 bankruptcy might have to forego their summer home but not their primary home.