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Why is the Dallas Bankruptcy Rate Rising?

The downturn of the American economy has its share of casualties and victims.  Millions of Americans are burdened by strangling debt– even in areas as affluent as Dallas, Texas the financial devastation can be seen.  After years of tightening the belt and cutting expenses, area businesses have been forced to use layoffs and furloughs as their last measures before closing doors.  Naturally furloughs and layoffs affect families in the worst possible way, putting individuals and their families into the direst of circumstances.  With a loss of one to two incomes, area families are finding that they are unable to meet their financial obligations, and in some circumstances cannot even provide the basic living essentials.

In many cases, businesses cut benefits and hours rather than layoff employees.  Still, this leaves many employees-especially those with health issues in a precarious position.  Faced with unemployment or a cutback in hours or benefits, many area workers have been forced to accept the loss in pay and benefits rather than do without entirely.  As many Americans well-know, health care is an expensive but necessary proposition.  With a loss in pay it is nearly impossible to afford health care-even COBRA, especially when a family member has a pre-existing condition. As health insurance providers quickly cancel these individuals they are forced to do without health care, or pay out of pocket.

Medical expenses have become one of the leading causes of debt in America.  Forced to pay outrageous hospital and medical expenses with limited resources, more and more Americans are finding themselves strangled with medical debt .  If you or someone you love is facing debt due to job loss or medical bills, then the best possible solution involves meeting with professional Texas bankruptcy lawyers who can explain all of the available options and separate fear from fact.

Texas bankruptcy attorney’s state that the credit card companies have so effectively demonized filing bankruptcy that they play on debtor’s emotions and fears; fears that their credit history will be ruined for the next ten years.  This couldn’t be more false.  In fact regardless of filing chapter 7 or chapter 13 bankruptcies , it is easier to obtain and re-establish credit after successfully discharging a bankruptcy than it is to have continued to pay the debts late on your own. This doesn’t even take into accounts the astronomical fee’s charged by credit card companies as they raise their interest rates immediately once a consumer is late, and are allowed by law to charge additional late payment and penalty fees in addition to the maximum interest rates.

If a consumer is having trouble making their payments at the lower interest rate, how does it make any sense that they would be able to catch up when the card holders not just increase the amounts due, but continually add fees that only raise the total balances due?

If you are facing debt that you cannot overcome without Divine intervention or mega-million lottery win don’t wait, don’t fool yourself into believing you can save money in the future that you couldn’t save in the past.  Act.