Houston Bankruptcy Law Blog

Recent reports indicate that consumers have a knack for remembering incidents when they are treated unfairly by their credit card company. This sentiment is particularly pronounced when compared against reactions to other companies, such as health insurance companies or grocers. One reason for this attitude may be that consumers in Texas, and across the country, are feverishly attempting to pay down the overwhelming debt that many have accumulated through credit card usage.

Based on a March 2012 report from the Federal Reserve, U.S. consumer revolving debt, mainly credit card debt, dropped below $800 billion to $798.6 billion. This 3.3 percent dip from the previous month is the second-lowest debt reading since October 2004. January and February of this year similarly saw declines in overwhelming debt tied to credit card usage, compared to 2011's month-to-month increase of revolving debt.

The economic crisis over the last several years has led many consumers to file for bankruptcy. In fact, as of September 2011, 1.4 million U.S. residents, including many residents in the Galveston area, sought bankruptcy protection. However, there is good news for consumers worried about how a bankruptcy will affect their future finances. Many consumers wonder if having a bankruptcy on their record will prevent them from getting certain financial products down the road, such as qualifying for a credit card.

In a recent national report, readers learned that filing for bankruptcy does not mean a person will not be able to qualify for a credit card. Creditors have their own understanding of the different situations that lead consumers to seek debt relief through personal bankruptcy.

According to a recent media report, there are many military families, such as those residing in Texas, battling credit card debt. Even the financial benefits of active-duty service members are often not enough to offer military families the relief they need.

Some of the laws that do exist for men and women actively serving in the military include additional combat pay, housing allowances and exemptions from income tax. However, the financial difficulties associated with a soldier's multiple deployments and the frequency of moving the family make it difficult for the spouse to locate new work opportunities. A new military post means the non-soldier spouse must look for a new job.