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Texas consumers increasingly unable to pay credit card balances

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.

A bankruptcy may fade over time

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.

How to repair credit properly after a bankruptcy

Filing for bankruptcy could be an effective way to help a Texas resident get control over their finances. However, it can also have an impact on a person's credit score. While it is possible to repair a credit score, the only way to do so is by spending time making payments and taking other steps to overcome past mistakes.

FDCPA grants debtors rights when contacted by collectors

Although Texas consumers who are falling behind on payments might feel powerless when confronted by debt collection agencies, the Fair Debt Collection Practices Act places limits on the behavior of these companies. This federal law establishes that collectors cannot act in an abusive manner toward people.

When a creditor violates an automatic stay

In most cases, Texas consumers who file for bankruptcy receive immediate protection from creditors trying to collect debts. Usually, courts issue an automatic stay when a bankruptcy case is filed. This court order prevents collection actions while the bankruptcy case is in progress. Bankruptcy law holds creditors accountable if they willfully violate the stay.

Bankruptcy provides special rules for foreclosures.

People in Texas who are facing foreclosure may consider bankruptcy a possibility when no other options are available. The extent bankruptcy can help the foreclosure defendant depends on a number of factors, including the chapter utilized, the amount of arrearages, other debts and monthly income.

Refinancing during a bankruptcy

When people in Texas are forced to file for bankruptcy, they tend to find it difficult to apply for refinancing due to the abysmal state of their credit score. Nevertheless, they can still receive refinancing if they manage to follow a few simple steps.

Bankruptcy filings fall, but warning signs linger

Economic indicators in Texas and around the country have been improving steadily in recent years, and this has led to a sharp fall in business and personal bankruptcy filings. Chapter 7, 11 and 13 petitions soared in the wake of the 2008 financial crisis, but they have since fallen by more than 50 percent according to a report on the federal judiciary released by Supreme Court Chief Justice John Roberts on Jan. 8.