If you live in Texas, you have special protection under the law concerning debt collection. Debt Settlement in Texas has advantages!
When a debt collector decides that they cannot collect on a delinquent debt, they may decide to FILE A CLAIM and a SUMMONS will be issued to the DEFENDENT, the person who owes the debt.
In most cases, the DEFENDENT (you), owes the debt, so there is no need file an ANSWER or to appear in court.
An "ANSWER", is a legal statement that you do not owe the debt and why the CLAIM is invalid. Sure, you object to the outrageous interest, fees and penalities tacked on the original balance, but you agreed to that when you signed that credit card application...sorry!
So, if you don't do anything about the SUMMONS, and I certainly DO NOT ADVOCATE THAT, then the PLAINTIFF (the filer of the claim and owner of the debt), will be awarded a JUDGMENT.
NOW WHAT?????
If an agreement (SETTLEMENT or STIPULATTED AGREEMENT) cannot be negotiated, then the PLAINTIFF most likely will apply for a WRIT OF GARNISHMENT. In most states, this will force an employer to send 25% of your net "take-home-pay" (after any state, federal or other withholdings have been deducted from your paycheck).
While this is true in most states, the good news for all of you Texans is that Texas has laws that prohibits most creditors from any wage garnishment!
Notice I said "most creditors" and not "all creditors.
Texas does allow for wage garnishment for debts such as:
- Unpaid income taxes
- court ordered alimony and child support
- defaulted student loans
One more thing, if you earn wages from an "out-of-state" employer, these wages most likely WILL NOT be exempt from wage garnishment.
For more information about Texas Law and Wage Garnishment, visit:
So now you understand that for most unsecured debts, Texas will not allow wage garnishment.
WHAT ABOUT A BANK LEVY IN TEXAS?
In other words, can a debt collector levy (get the bank to send them your money!) your bank account for unpaid debts???
YES!
Just because a creditor who has been awarded a judgment cannot apply for a writ of WAGE GARNISHMENT, doesn't mean that they cannot (and most likely will) apply for WRIT OF LEVY from your bank!!!
Therefore, you should be making every attempt NOT TO HAVE A JUDGMENT GRANTED in favor of you creditor (or debt collection agency)!
How can you do that?
Contact your creditor(s) as soon as you are having a problem keeping up with your payments. They may help you get caught up or arrange for you to lower your payments for a while until you get back on your feet financially.
If you know that because of loss of employment or some other catastrophic financial issue that you not only cannot keep up with your payments and it is unlikely that you'll be able to make any payments for a long time, then you need to try and negotiate a SETTLEMENT.
DEBT SETTLEMENT is a method whereby you and the creditor agree on an amount (usually much less than the balance that you owe) that will be paid either in a lump sum or in payments.
DEBT SETTLEMENT is possible to do on your own, but after helping people for over 10 years now, it is very TIME CONSUMING and can be EMOTIONALLY AND PYSICALLY EXHAUSTING!
Please download our FREE e book below:
If after reading the basics about DEBT SETTLEMENT, you feel that you could use some help, just let us know. We'll be glad to talk with you to see if you qualify for the DEBT SETTLEMENT PROGRAM, and this consultation is...
FREE, with NO OBLIGATION WHATSOEVER!
To summarize:
- Your wages are exempt from garnishment in Texas
- Other debts, such as, income taxes, alimony, child support and Federal Student Loans are not
- You BANK account IS NOT EXEMPT from LEVY after a JUDGEMENT has been awarded, but,
- YOU CAN AND DO HAVE OPTIONS
