The number of Texas bankruptcy filings increased last month, up nearly 13 percent from this time last year. However, it is only one of four months this year to have shown this trend, suggesting the remaining months were comparable or less than last year’s filing numbers. The number of Chapter 7 and Chapter 11 business cases were similar the number of filings from last year.
Rose Colored Lenses?
Having been one of the few states that has remained relatively unscathed by the housing crisis and economic downturn, Texans have been able to fight off much of the financial pressures facing the rest of the country. What is promising about these numbers is that the filings have increased for Chapter 13 and not Chapter 7 bankruptcy, suggesting that more Texans are financially able to repay their debts with assistance. Although qualifying standards for Chapter 7 has become more difficult over the years, many consumers now report that they see more benefit to be gained from a Chapter 13 restructuring plan over Chapter 7 elimination.