For people in Texas facing a serious medical diagnosis, debt may be a major concern. Medical debt poses a serious problem for far too many Americans, even those with health insurance. Around 20% of insured Americans continue to struggle to pay off medical debt. Many providers may be considered out-of-network, and the costs of prescription medication alone can skyrocket dramatically.
When individuals living in Texas file for bankruptcy, they typically do so because they need a fresh financial start. While most types of debts can be discharged in bankruptcy, there are a few exceptions. One type of debt that can be nondischargeable is a court judgment.
Texas residents who are struggling with unmanageable student loan debt might be able to get some relief if a proposed bill is passed by Congress. The legislation has backers from both the Republican and Democratic parties.
Bankruptcy generally has different connotations whether the filing party is an individual or business. When individuals file for bankruptcy, it generally means they have fallen too far into debt and need help getting out.
Credit card charge-offs increased to 3.82% in the first quarter of 2019, which was the highest rate since 2012. Capital One had a charge-off rate of 5.04% during that time period. Furthermore, the seven largest credit card companies said that the number of accounts 30 days past due also increased. When an account is 30 days past due, a write-off will be more likely in the future.
Filing for bankruptcy will have an impact on a person's credit score. However, there are scenarios in which a person in Texas will see his or her score increase after doing so. This is because most debts that were previously on a credit report will have been discharged. In some cases, credit card companies and other lenders may seek out a consumer who has just filed for bankruptcy. However, there is no guarantee that credit will be available immediately after doing so. It is also likely that a lender will charge a higher interest rate.