Texas Debt Settlement :
Debt settlement is also known as debt negotiation or debt reduction, is a relatively new way for dealing with your debt problems. In a debt settlement program, by negotiating with a creditor, it is possible a client may be able to settle their debts for less than the balances they owe and as a result get out of debt much faster than just paying the minimums.
Debt settlement in Texas is a good solution for consumers feeling overwhelmed with credit card debt that find themselves either falling behind on their payments or just able to afford the minimums. Considering the savings, in may be worth considering if you find yourself in any of the aforementioned situations. As with any debt solution, however, there are potential downsides to debt settlement that should always be considered prior to enrollment. First, debt settlement may have an adverse impact on your credit.
Two other drawbacks to consider before choosing debt settlement include 1) the possibility of legal action being taken by the creditor to collect the full balance and 2) the possibility of creditors harassing you until the debt is settled.
Why is Texas debt settlement so preferable compared to a lot of other states? The reason is Texas has highly favorable debtor laws that give consumers a lot of rights and protections when it comes to past due unsecured accounts like medical bills, credit cards, repossessions, and personal loans.
How State Collection Laws Benefit Texas Debt Settlement?
Every state has falls under federal law that say if a collections agency is collecting a debt, they are legally obligated to stop contacting a consumer if the consumer sends a Cease and Desist letter and/or a Power of Attorney notifying the collection agency that a third party is responsible for handling all communications with the creditor. Texas law takes it a step farther and not only limits harassment from collection agencies, but also from the original creditor as well. In most states, when a consumer falls behind on their payments and the debt is still being collected by the original creditor (the bank that originally lent you the money or the hospital that serviced you, for example), then the creditor is reserved the right to call the debtor on a daily basis in order to collect whatever is owed, and as a result, most debt settlement clients do in fact experience phone calls during the program, particularly in the early stages when the accounts are being handled by the original creditor as opposed to a collection agency.
Although there are legal protections from harassing phone calls for Texas clients, they should expect calls in the program, however. That said, the protections offered go above and beyond most states, giving the client more rights and remedies for violations made. Also, please note that since Franklin Debt Relief is not a law firm, however, we cannot help you to exercise your rights under these laws, although we can certainly help direct you to the resources necessary for you get protection from creditor harassment such as lawyers who specialize in helping in these types of situations.
Texas Debt Settlement and Community Property Laws:
If you are married, reside in Texas, and are seeking debt settlement services, you should enroll any and all debts that were accumulated during the marriage by both you and your spouse. Just because only one partner owns the debt the other partner is not exempt from having to pay for it as well under Texas law. Creditors know this and may use it to their advantage in the collections process. In other words, they can potentially not only hold you liable for any debts you incurred during your marriage, but also you spouse, even if they are not listed on the account whatsoever.
Debt settlement Texas – How to start?
Debt negotiation is also called debt settlement or debt reduction, and it’s a new way to deal with your debt. By negotiating with your creditors, a debt reduction company can reduce your debt by up to half and you can be debt-free in as little as a year.
Debt settlement is an ideal solution if you’re overrun with credit card debt, and you’re barely able to pay the minimum payment. However, there are some drawbacks you need to be aware of. Debt negotiation can damage your credit, but any kind of debt help will do the same (and the negative effect on your credit is minimal) and if you’re behind on your payments your credit has already been damaged. With debt settlement, the creditor can legally call you or collect from you until the debt is paid in full.
If you are doing a debt settlement program in Texas, you won’t have as many concerns. In the state of Texas, laws are slanted toward the consumer- giving the average person a lot more rights when it comes to unpaid bills, repossessions, and loans.
Each state in the union has laws that say that debt collectors MUST stop calling you if you send them a “cease and desist” notice, or if you provide them with a notice that a third party is responsible for all further communications regarding the debt. Texas’ laws take it further, limiting not only collection calls, but those from original creditors as well. No state law can completely stop collection calls, but Texas debt help companies can greatly reduce them, because the state’s laws deal with both original creditors and third-party collection agencies.
If you live in Texas, and you’re looking for a debt relief service, you should include all debts that you’ve incurred (while you were married, as well as before, because Texas law holds both partners legally responsible for debts incurred during the marriage, whether or not both names are on it). Creditors use that law to their advantage, but consumers can make the laws work for them as well.