Bankruptcy rates vary from state to state across the country. There are plenty of theories on the cause of these variances but it seems that there is little rhyme or excuse to the ebb and flow of bankruptcy filings. When it comes to South TX and Texas as a whole, bankruptcy rates are on the lower end of the spectrum.
So why are bankruptcy rates in a state such as Texas so low when bankruptcy rates in say, MO, are so large? Let us take a look at some of the chances:
Medical debt. There is not much of a link here since Texas has a high percentage of uninsured citizens along with low bankruptcy rates. Actually, a large number of bankruptcy cases involving medical debt are filed by the insured.
Salary. Tis fruitless to attempt to connect bankruptcy rates with unemployment and income. Even the gainfully employed live beyond their means and rack up debt regardless of how much cash they make.
State bankruptcy laws. This might be the most telling comparison. Texas state law definitely favors the debtor with the bulk of its contents. Under state law, Texans can exempt a large fragment of their possessions and all debts with the exception of child support cannot be garnished by creditors. This combination leads to low bankruptcy rates in the state because Texans have more room to maneuver their economic position instead of having to shift to bankruptcy.
Learn More About Bankruptcy in South TX Today
If you are facing uncontrollable debt and live in TX then take the time to learn more about your state's bankruptcy laws. If you need guidance in this region then speak to a bankruptcy lawyer in your area who'll know the state's laws on bankruptcy from top to bottom and help get you on your way to the promised land of financial freedom.
