It’s stressful to find yourself in debt. Your creditors have a right to expect you to pay them. When you are delinquent on payments, your creditor may sell your debt to a collection agency for less than the amount you owe.
Debt collectors must comply with the Texas debt collection and federal Fair Debt Collection Practice laws. Debts covered under these regulations include automobile loans, medical care bills, and credit card debt
You can be just one medical bill away from financial ruin, regardless of how careful you may be with your finances, with the rising cost of health care, millions of responsible Americans may be just one accident or illness away from financial ruin.
If you are already drowning in debt, having money taken out of your paycheck just adds to your financial nightmare. Wage garnishment (also called wage attachments) are court or state agency orders that tell your employer to take money from your paycheck and pay it to your creditor.
Reputable credit counselors provide advice on managing your money and debts and help you develop a plan to deal with your financial problems. For people who are drowning in credit card debt, this help is invaluable.
An experienced bankruptcy lawyer in Texas can help you understand whether filing Chapter 13 bankruptcy is the best alternative for your specific circumstances. Your attorney may recommend an alternative such as a debt management or a free credit counseling program before you file for bankruptcy or as an alternative to filing.
There’s an old adage that nothing is certain except death and taxes. Even though you may be able to address some tax debt with a bankruptcy filing, you still must file a federal tax return with the IRS. Chapter 13 bankruptcy lets individuals and small business owners develop a plan to reorganize their debt and repay their creditors.
Whatever the reason for their debts, filing for bankruptcy is often the best way to get a financial fresh start. Generally, individuals will either file a Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy eliminates unsecured debts, but to qualify, you must have little or no disposable income.
When people with low incomes cannot pay their debts, they get frequent calls and letters from bill collectors and are under constant stress from financial uncertainty. Chapter 7 bankruptcy provides people with debts they cannot pay a way to start over financially.