Timing could make a big difference in the outcome of a bankruptcy. The longer a Texas individual or couple waits to file bankruptcy after they know they are in financial trouble, the harder it could be to recover. According to data from the Consumer Bankruptcy Project, two-thirds of the people who eventually file for debt relief struggle for more than two years with bills they are not able to pay.
During the first quarter of 2018, Americans paid off $40.3 billion in credit card debt. However, many Texans are still in the red. A report by WalletHub, which used data from the credit agency TransUnion, the Federal Reserve and the U.S. Census Bureau, found that although the second largest amount was paid off since the beginning of 2009, credit card debt remains at the second highest point since the end of 2008.
As many people in Texas know, it is sometimes necessary to file bankruptcy. Things happen that cause financial hardship, and debtors need relief. Chapter 13 bankruptcies can span three years or five years, sometimes creating a challenge for debtors who find themselves needing to purchase an automobile during this time.
Once you make the decision to file for bankruptcy protection, you want the entire process to go well and be over with as soon as possible.
Texas residents considering filing for bankruptcy to handle their substantial debts should be aware that not every type of debt is eligible to be discharged. People should also understand the differences between the two types of bankruptcies they are most likely to file.