When Texas residents pursue Chapter 13 bankruptcies, their court-approved payment plans may be modified in certain situations. Some courts have ruled that such modifications require a substantial change in circumstances, but a judge on the U.S. Bankruptcy Court for the Western District of Arkansas found that only two circuit courts have addressed this issue. The case involved a couple who requested a modification after surrendering a financed vehicle, and the judge ruled on May 26 that a substantial change in circumstances was not needed.
According to ValuePenguin, the average American household has roughly $5,700 in credit card debt. However, those in Texas or elsewhere who are between the ages of 45 and 54 have $9,096 in credit card debt on average. Those who are under 35 have the lowest average credit card debt with $5,808. While credit cards may seem like an easy way to finance a person's lifestyle, credit card debt can have long-term implications for an individual.
Texas residents likely know that creditors generally cannot sue for the collection of debts once the statute of limitations has expired. However, courts have been divided as to whether or not filing a claim on a stale debt as part of a bankruptcy violates the Fair Debt Collection Practices Act. In May 2017, the Supreme Court ruled that it did not, reversing an 11th Circuit ruling.
Texas residents may know that a bankruptcy will stay on their credit report for either seven or 10 years. However, it may be possible for people to start rebuilding their credit right away. The first step is to create a budget that makes paying bills on time a top priority. A timely payment history makes up 35 percent of an individual's FICO credit score.
People often think that their only option to get relief from debt is to file for Chapter 7 bankruptcy and have all or most of the debt discharged. However, before you resolve yourself to this solution, keep in mind that there are other forms of bankruptcy, including Chapter 13.