Bankruptcy in Texas isn't so bad: filings down, study says

HOUSTON –– Although Texas is continuing to go through its fair share of economic woes, compared to the rest of the nation, the economy is still trending above average.

And that means bankruptcy is trending down for the state, which is not the case in the rest of the country.

The unemployment rate in Texas fell from 8.3 percent in December 2010 to 7.8 percent in December 2011, according to the Texas Workforce Commission’s monthly jobs report released in January 2012, while the nation ended 2011 at 8.5 percent.

This is due in large part to job growth. Last year non-agricultural jobs in Texas grew by about 2 percent compared with 1.3 percent for the rest of the country. But that’s not the only sector that experienced growth. The state's private sector added 261,200 jobs, an annual growth rate of 3 percent compared with 1.8 percent for the rest of the nation. Additionally, in quarter 3, 2011, Texas ranked fourth for credit card debt (behind Iowa, North Dakota and Arkansas), and in 2010 Texas also ranked fourth for bankruptcy rate; the number of bankruptcy filings per capita (1,000) in Texas dropped from 2.36 in 2010 to 2.06 in 2011.

Houston-based debt relief and bankruptcy attorney Adam Schachter doesn’t go so far as to say that Texas is doing well economically, though he does say that based on the available economic indicators, the economy in Texas appears to be doing better relative to the rest of the country.

With job growth on the rise and unemployment trending down, the signs would appear to be positive.

“Regardless of what the future holds for the Texas economy, it is important for consumers to deal with their debt before it grows,” Schachter said. “Many of my clients find that they actually don’t need to file for bankruptcy because of alternative solutions”.

One of the toughest financial difficulties is still credit card debt and mortgage payments. However, early intervention can make a tremendous difference in a resident’s personal financial future.

Attorney Adam Schachter is board-certified in consumer bankruptcy law by the Texas Board of Legal Specialization and is licensed to practice law in the states of Texas and Arizona and permitted to practice in the Federal Court Districts of the Southern, Northern and Eastern Districts of of Texas.