Brownsville Texas Bankruptcy Legal Blog

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.

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.

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.

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.