Update on filing for bankruptcy in Texas

On Behalf of | Jan 26, 2014 | Chapter 13 Bankruptcy |

Filing for bankruptcy is not something people always desire to do, but it is sometimes the best option available. Regrettably, when the economy takes a turn for the worst, many people are left without jobs and financial security. In Texas, those who no longer have a secure income, or any income at all, are often better off filing for bankruptcy.

When the economy of the United States struggled immensely five years ago, the number of people filing for bankruptcy increased drastically. As the economy once again regains stability, these filings have gotten lower and lower. Job loss at that time played a major role in people going bankrupt. Now, though, divorce and tremendous medical expenses cause a similar amount of bankruptcy filings.

Since the downturn of the economy, credit card debt as a cause of bankruptcy has decreased. However, payday loans have become a new factor in bankruptcy filings by Americans. As the economy becomes more stable and begins to thrive, the relationship between lenders and borrowers has greatly improved. Researchers believe that there will be a continued decrease — though small — in bankruptcy filings over the next couple of years.

Unexpected financial situations like losing a job, getting a divorce or sudden medical bills can cause someone to find himself filing for bankruptcy. The economy plays a large role in the number of bankruptcies that are filed. When one has to file bankruptcy in Texas, it is important to have a complete understanding of the different types and what it entails. Being more knowledgeable about the process can make it go smoothly and ease the stress of an unfortunate situation.

Source: jsonline.com, Improved economy reverses surge in bankruptcy filings, Paul Gores, Jan. 19, 2014