People who are struggling with unmanageable financial situations are sometimes reluctant to pursue debt relief because they are worried about losing their homes. While this may be a real concern for people living in some parts of the country, it is something that Texas residents rarely have to worry about. This is because the Lone Star State has some of the nation's most generous bankruptcy exemptions.
People who use medical marijuana in Texas may run into problems in bankruptcy court when it comes time to set up a court-ordered repayment plan. Businesses in the marijuana industry have had trouble seeking bankruptcy protection, even in fully legal states, due to the continuing federal criminalization of cannabis under the Controlled Substances Act. Bankruptcy courts have ruled that they cannot provide relief from debts to companies whose businesses violate federal law despite state legality. While these cases dealt with companies directly involved in the cannabis business, medical marijuana has arisen as an issue in some personal bankruptcy cases.
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.
Individuals who are struggling to pay their bills may decide to file for protection from creditors. Those who want to keep their Texas home or other property will want to file for Chapter 13 bankruptcy. In a Chapter 13 case, debtors make payments to creditors over a period of three or five years. Child support, back taxes and alimony payments are considered priority debts, which means that payments are applied toward those balances first.
The television show "American Chopper" attracted many fans in Texas, but one of the reality show's stars has continued the real-life drama in bankruptcy court. Paul Teutul Sr., the famously cranky patriarch of the show, now faces opposition from the trustee of a bankruptcy court. Teutul filed for Chapter 13 bankruptcy protection in February 2018, but the trustee has filed a motion expressing doubts that Teutul can make the payments required by the bankruptcy plan.
Filing for bankruptcy isn't an easy decision for anyone in Texas considering this option to manage debt. Once it's decided to explore options with Chapter 13, many people have questions about the details associated with this approach to bankruptcy. With income, there is no limit for filing, nor is there a limit to how much debt someone can have. However, there are limits with secured and unsecured debt: $394,725 and $1,184,200, respectively.
The acceptance of debt as commonplace in everyday life seems to be a new reality for many Texas residents. According to recent studies, individual debt continues to rise among nearly every age group in the country. An analysis of what kind of debt and how much debt is being acquired by different age groups paints a revealing picture.
Many car owners in Texas face auto repossession when they fall behind on payments. Some consider filing a Chapter 13 bankruptcy to stop a lender from repossessing their vehicle. Before filing for bankruptcy, however, there are several other options to consider.
Debtors in Texas and elsewhere are protected against certain actions of debt collectors. The federal law governing the actions of collectors is called the Fair Debt Collection Practices Act (FDCPA). Recently, the U.S. Court of Appeals for the 6th Circuit determined that the FDCPA prohibits certain activities of the debt collector, including state-required collection activities.
When people in Texas face overwhelming debt and are no longer able to make ends meet, they may look for options to find some relief from pending credit card debts, medical bills and other looming obligations. Personal bankruptcy can be an important choice that allows people to move forward to a new financial future. When people file for bankruptcy, they can do so in two forms: Chapter 7 and Chapter 13. There are several reasons why people may choose one or the other.