Texans Most Likely To Default: Experian
The Dallas News reports that many Texas debtors aren't in good shape. "With the tougher bankruptcy law taking effect Monday, this is the last news you'd want to hear: According to credit bureau Experian, Texans are the most likely to file for personal bankruptcy in the next 12 months. For the first time, the bureau studied average bankruptcy scores by state and found that Texas' average score was worst among the 50 states.""Howard Marc Spector, a Dallas bankruptcy attorney, said Texas is in a unique situation when it comes to bankruptcy filings. 'We're not the poorest state, and we have the best protections of any state,' he said. 'We don't have wage garnishments, they can't take your house, they can't take your car, so you don't need a bankruptcy to protect yourself from your creditors.'"
"One thing that's not in dispute about Experian's study is that Texas households, on average, are strapped. Soaring prices for gasoline, natural gas and electricity are hitting consumers who have no cushion. The savings rate has been negative for three months, and household debt levels have never been higher."
"'Most people either fail to set a budget or aren't disciplined enough to stay within their budget, primarily because of the ease of using credit cards,' said William Norton III, author of Norton Bankruptcy Law and Practice."
"Bernard Weinstein, of the University of Texas, said the large number of young families in Texas increases debt levels. 'They're starting out and they're taking on debt at a very, very fast clip if they're forming a household,' he said. 'This is a state where debtors have always had the upper hand.'"
posted by Ben Jones @ 8:46 AM
1 Comments:
Texas does have a homestead exemption in it's constitution, but passed a waiver a few years back that allowed home equity loans. If someone took out that loan, they can lose their house.
Also, the new BK law over-rides state laws and I think the matter will end up in the courts.
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