The Texas legislature has established rules and regulations regarding debt counseling and education in the Texas Finance Code. Chapter 394 is dedicated to debtor assistance and Section 394.001 sets forth the duties of the consumer credit commissioner, also sometimes referred to as the debt commissioner.
Understanding means tests in bankruptcy
A Texas bankruptcy case does not begin until a petition is filed, and it is important to complete some preliminary steps before filing. Chapter 7 is ideal for liquidation purposes, allowing many unsecured debts to be discharged. However, this is reserved for those who are in a financial state that requires legal action when pursuing a fresh start. Those with sufficient means are not eligible for Chapter 7, and eligibility is determined through means testing.
Seniors with student loan debt has increased significantly
As many as two million seniors in the United States still owe money for student loans, according to a recent report. Since 2005, the total debt owed by people age 60 and older increased from $8 billion to $43 billion. Student loan debt could be interfering with retirement plans of people in Texas. Credit counseling might help baby boomers and others with outstanding loans manage their debt.
Benefits of Chapter 13 bankruptcy
For Texas residents facing an unmanageable amount of debt, there is help out there. They can put a stop to collection calls through a Chapter 13 bankruptcy filing. When filing Chapter 13 bankruptcy, individuals can help themselves, getting out of debt by agreeing to a repayment plan with those to whom they owe money.
Chapter 13 bankruptcy may reorganize debt
As some Texas residents may know, Chapter 13 bankruptcy may allow an individual to pay back their debt and keep their property. The payback period depends on the debtor's income. The greater the debtor's monthly income, the longer the repayment time, but the typical plan lasts from three to five years.
