Tyler Texas Bankruptcy Law Blog

Veterans who have been injured in combat often face significant challenges as they seek to resume their lives back in Tyler and elsewhere in the United States. Physical and psychological injuries commonly require intensive, long-term treatment and can turn everyday tasks into hurdles to overcome. Recently, it was reported that thousands of veterans and their families are shocked to find that they owe thousands for survivor benefits to the government, threatening their family's financial stability.

The Survivor Benefit Plan is like a life insurance program run by the Department of Defense. When service members with eligible beneficiaries retire, they are enrolled in the program at the maximum contribution level automatically unless they complete and submit a notarized opt-out form. Deductions typically come out of their retirement pay. However, for disabled veterans who receive the majority of their compensation through the Department of Veterans Affairs instead of the Department of Defense, the agency sends monthly bills for their Survivor Benefit Plan contributions.

Texas debtors who are facing a litany of issues due to financial struggles might feel overwhelmed. Once their debts have reached the juncture at which they can no longer pay them, it is inevitable that the collection calls will begin. This only compounds the fear that a debtor will need to address in addition to the financial woes. Fortunately, there are alternatives to put a stop to these calls and get back on better financial footing.

Bankruptcy is a way to improve one's financial situation as well as stopping the collection calls through an automatic stay. When a lawsuit is filed by any entity seeking payment on a debt, an automatic stay puts a stop to it. It is also useful for those who are close to eviction, foreclosure, or are dealing with utilities being turned off for lack of payment.

Some Tyler residents struggle with debt for most of their lives. Some may even pass away with significant debt, especially in the case of medical bills incurred late in life. The prospect leaves many wondering what happens to one's debt after death.

Unfortunately, debt does not die along with the debtor. Creditors' rights to collect the money owed to them extend to a deceased borrower's estate. The executor of the estate will be responsible for paying any debts by using the assets in the estate. That includes any cash available, and potentially selling off valuable items or properties if more funds are needed to cover the debts.

One of the most stressful and overwhelming aspects of owing a lot of debt is constant contact from creditors and debt collectors. If you are past due on your payments, your creditors do have the right to attempt to collect on what you owe, but there are limits to what they can do. 

Regardless of how much money you owe, debt collectors cannot overstep their bounds and violate your rights. If you believe you are enduring treatment that qualifies as creditor harassment, you do not have to tolerate it in silence. There are steps you can take to protect yourself and seek a better financial future for your Texas family.