 With the struggling economy, many people are finding themselves deep in credit card debt. Therefore, consumers are forced to turn to debt consolidation in order to get control of their finances. However, before a person decides to consolidate their credit card debt, they need to be aware of the credit... |
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Living with debt is by no means easy. There’s the constant concern of living paycheck to paycheck and the never ending issue of covering monthly bills and living expenses. While most of us pride ourselves on being self-sufficient, it’s hard to ignore that we all sometimes live well beyond our means.... |
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| Texas |
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With the passing of Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA) in 2005, declaring bankruptcy in Texas became a much more difficult task. New bankruptcy laws now require consumers whose median income is higher than the state average for households their size to pass the “means test” in order to file Chapter 7 bankruptcy. Listed below is median income information for Texas as of 2006: 2 Person Families: $49,933 3 Person Families: $52,313 4 Person Families: $59,808 5 Person Families: $52,445 6 Person Families: $49,552 7 And Up Person Families: $51,504 (Note: To get current statistics you should discuss your situation with a debt attorney in Texas.) If your income exceeds the median income in Texas, you would need to pass the “means test” in order to qualify for Chapter 7 Bankruptcy. Most consumers prefer filing Chapter 7 because oftentimes the debt can be wiped completely clean. Under a personal Chapter 7 filing, a consumer is required to liquidate their non-exempt assets. What is protected is determined by the Texas Bankruptcy Laws. Chapter 13 Bankruptcy, the debtor is required to pay back the debt over three to five years on a court-approved payment plan. Under the plan, the consumer is ordered to turn over their disposable income to the courts, which can be a trying task over such a long period of time. It is for this reason that the majority of Chapter 13 plans actually fail. To get matched directly with a pre-qualified credit card debt service that offers an affordable and painless way to avoid bankruptcy. Texas Consumer Bankruptcy Statistics 2006: 34,550 personal filings 2005: 117,612 personal filings 2004: 90,651 personal filings The severe decline in Texas' 2006 bankruptcy filing shows what a dramatic effect new laws have had on overextended consumers. Since 2006, filings have slowly increased, but this largely stems from financial problems within the marketplace such as foreclosures and poor real estate prices. The 2006 bankruptcy filings is also a reflection on the rush of consumers who filed in 2005 immediately prior to the new law taking effect. |
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Credit is a useful tool and when handled responsibly allows us to obtain credit cards, loans for homes, cars and other big ticket items. The better we handle our credit, the better the terms that are offered to us from lenders including higher credit lines and lower interest rates.
If, however, a... |
The dismal economy is having an adverse effect on people around the globe with millions facing tremendous amounts of debt. For many, escaping their debt seems like a far off dream but it doesn't have to be! By applying a few simple guidelines to your spending habits, you can begin to reduce credit card... |