While bankruptcy may help Texas residents gain control over their finances, there are limits to how often a person can file. Individuals who filed for Chapter 7 bankruptcy cannot file another Chapter 7 petition for eight years. Furthermore, they cannot file for Chapter 13 bankruptcy for at least four years after the Chapter 7 case was filed. The rules are slightly different for debtors who file for Chapter 13 protection.
Debt forgiveness may sound like an attractive option to Texas consumers who are overwhelmed by their financial obligations, but the companies offering these services often fail to live up to the promises they make. Even when they do, their customers are usually left with lower credit scores and unexpected tax bills. Debt forgiveness is based on the idea that lenders will agree to cut balances significantly in order to get at least some of their money back, but things rarely work out that way in the real world.
Texas consumers who file for bankruptcy may find that its relatively easy to improve their credit score after doing so. According to a Lending Tree report, 65 percent of Americans had a credit score of at least 640 three years after filing. There are many steps that people can take after filing for bankruptcy to improve their credit score.
If you have been procrastinating on your financial situation and are not sure of how much longer you can keep the utilities on, you may want to file for bankruptcy in Houston. Even though you are doing everything in your power to cover the household expenses and feed your child, it could be time for you to throw in the towel and learn how bankruptcy can help keep your utilities on while you work on improving your situation.
Debt has become a huge problem for consumers throughout Texas and the rest of America. U.S. citizens collectively owe $1.41 trillion in student loans, $1.23 trillion in auto loans and $815 billion in credit card debt. However, there are several important steps a person who wants to get out of debt can take.