An increasing number of older people in Texas and across the country are filing for bankruptcy. There are a number of factors contributing to the problem of people facing severe economic crisis after they reach retirement age. While in 1991, only 2% of all bankruptcy claims were made by elders, that figure has now reached 12%. Personal bankruptcy can provide relief from most types of debt, but it does exclude some major obligations, including student loans and certain taxes. In many cases, elders may accumulate student loan debt as co-signers for younger relatives.
In a Chapter 13 bankruptcy case, a Texas debtor can ask to accrue new debt during the repayment period. However, a trustee must review the request, approve it and send a motion to incur new debt to the judge. A copy of the motion will also be sent to creditors. If all parties agree to the request, an order to incur debt will be created. The debtor will then be able to complete the process of applying for a loan.
Finding and maintaining financial security as a millennial can be difficult. According to a recent study, people between 25 and 34 years old have $42,000 in debt on average. If you are a millennial dealing with debt, you may start to consider filing bankruptcy.
Those who need help getting their finances in order could do so by filing for bankruptcy. In most cases, a debtor in Texas or any other state will file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is for those who have unsecured debts and make less than the median income in their state. It generally takes about three to six months to have debts discharged.