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Brownsville Texas Bankruptcy Legal Blog

Homeowners don't have to just accept foreclosure

Buying a home is often a rite of passage for many Texas residents. After all, it is part of the American dream. Right? The problem is that when a homeowner encounters financial difficulties, his or her mortgage loan lender may begin foreclosure proceedings for nonpayment.

Should a Texas homeowner simply accept this fate? It is not always necessary to do so. If he or she wants to keep the home, or otherwise avoid a negative mark on his or her credit, an alternative may be possible. Whether any of those alternatives will yield results depends on the particulars of the situation.

What does the FDCPA have to do with contact re credit card debt?

It seems as though it does not take much to end up with overwhelming financial issues. Credit card debt in particular can sneak up on many Texas residents just as it does for others across the country. For some, it is only when the incessant phone calls from creditors begin that the true scope of the problem really hits home. The last thing that people need as they are struggling with their debt is harassing phone calls.

Unfortunately, credit card companies have the right to contact consumers regarding their outstanding debt if it is not being paid. Fortunately, the Fair Debt Collections Practices Act does put some rules on how and when those phone calls can occur. First, the company may only make calls during certain hours -- between 8 a.m. and 9 p.m.

Chapter 7 bankruptcy issues: Bank levy and garnishment

Getting behind on financial obligations happens to many people, including Texas residents. These issues often arise out of some sort of crisis that drains financial resources such as an illness, an injury or job loss, among other things. When this happens, some creditors may attempt to get the money they are owed through a bank levy or a garnishment, both of which could be stopped, at least temporarily, through a Chapter 7 bankruptcy.

Even though both take the money of a Texas resident in financial trouble, there are differences between a bank levy and a garnishment. A bank levy authorizes a creditor to take money directly out of a consumer's bank account. Other than the fact that money comes out of this account to pay a debt without the consumer's permission, this debt collection method freezes the account until the debt is satisfied. This means that the account holder will not have the right to take money out of the account during this time.

Should the foreclosure option be furloughed during the shutdown?

There may be 800,000 federal workers not getting paid right now, but the partial government shutdown affects numerous other people as well, and many live here in Texas. As time goes on, it is inevitable that some of those affected may not be able to make their mortgage loan payments. Some are calling for the foreclosure process to be put on furlough for those affected by the country's current political struggles.

After all, the shutdown is not the fault of the normal citizenry. They should not face such dramatic action by their mortgage lenders when the situation is out of their control. Once the shutdown ends and paychecks go out again, most could catch up. All they need is the time and freedom to do so.

Dealing with credit card debt collectors

For many Texas residents, the holidays mean buying gifts, which often leads to overspending as people get carried away by the spirit of the season. In the first months of the new year, they may find themselves struggling to pay for the credit card debt incurred at the end of the previous year. When those debts cannot be easily repaid, they end up forced to deal with credit card debt collectors.

Numerous Texas residents handle this issue by simply not answering their phones or opening their mail. However, that could be a mistake. Ignoring debt collectors could make the problem worse. Struggling consumers may want to answer at least one phone call in order to see if there are any alternatives available such as making lower payments or negotiating a settlement of the amount of the debt.

Can a Chapter 7 bankruptcy help with student loans?

Numerous Texas residents pay their way through college with student loans. While in school, most of them had dreams of making enough money to support themselves and repay their loans without a problem. Then, reality set in, and they realized that paying for those loans is not as easy as they thought, and perhaps were told, that it would be. Most people are told that filing a Chapter 7 bankruptcy does nothing for student loans, but that may not always be the case.

Before filing for bankruptcy, many Texas college students look into alternatives. They may get into a debt repayment plan that allows them to make lower payments or no payments for a specified period. It does take a significant amount of time of not making payments before a student loan is considered to be in default. Even so, student loan companies can report delinquent payments as soon as 30 days after nonpayment. 

Many here in Texas struggle to find solutions to medical debt

Many Texas residents avoid going to the doctor as much as possible due to the high cost of health care. However, there are times when seeking medical attention is unavoidable. When a serious illness or injury strikes, the accompanying medical debt could financially devastate a family, and finding a satisfactory way to deal with it could prove elusive.

The first thing that any Texas resident should do when receiving a medical bill is to verify that it is in fact a bill and that the charges are not covered by insurance. Once verified, entering into negotiations with the provider could prove useful. Many medical professionals would rather receive some form of payment rather than none at all.

What to do when creditors file a lawsuit against you

Many people hope that creditors won’t keep knocking at their door forever. But, if you’ve stopped receiving collection efforts over the phone, online and in person, they probably haven’t given up just yet.

After attempting to collect unpaid debts, most creditors move on to plan B: Filing a lawsuit. If you’re being sued for overdue debt, it’s time to act fast. Here’s what you need to do to avoid legal action.

The repayment plan is at the core of a Chapter 13 bankruptcy

Many Texas residents experience financial hardships. However, not all of them need to risk losing some of their assets through the filing of a Chapter 7 bankruptcy. Instead, they may qualify to file a Chapter 13 bankruptcy in which most people retain most or all of their assets while reorganizing their financial lives and making payments on debts through a repayment plan.

Texas residents considering this debt relief avenue should know that it is more of a marathon than a sprint, which is one of the primary differences between Chapter 7 and Chapter 13. The repayment plan can last between three and five years depending on an individual's circumstances. Obtaining a thorough understanding of the process is crucial before deciding to file under this chapter of the Bankruptcy Code.

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Limon Law Office
890 W Price Rd
Brownsville, TX 78520

Phone: 956-465-2661
Fax: 956-544-4949
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