Life is often unpredictable. Any undesirable event, such as job loss or health problems, has the potential to complicate a person's life. Tyler, Texas, residents may be aware that when the economy is not healthy, the consequences may be unpleasant. Job loss can ultimately lead to an increase in consumer debt, which may be difficult to pay off. In that case, the debtor may have to face creditor harassment.
Currently, a former mayor is in the middle of a foreclosure crisis as well as legal difficulties. His Dallas townhouse has been in foreclosure since last month. Reports say that the townhouse in Texas will go on sale in May 2014. The ex-mayor and his wife bought the townhouse seven years ago. The trust deed of $157,490 was with Everbank. In February 2014, there was a transfer of the deed to the bank. It is not known whether an increase in personal debt led to this foreclosure.
Last month, the ex-mayor's attorney made an appeal for a reduction in the amount that the former mayor was ordered to pay following a criminal case. The former mayor was charged with corruption, money laundering and bribery and he was ordered to return over $501,000.
Although, in this case, it could not be established whether an increase in personal debt led to foreclosure, in Texas, a debtor does have certain advantages. The debtor can document all negotiations with creditors. This may come in handy during bankruptcy proceedings if the creditor behaves inappropriately. In that case, the debtor can make a formal complaint against the creditor.
It may be very difficult for a person who is struggling with debt to handle creditor protection issues alone. Personal debt and struggling with debt no longer carry the same degree of stigma for people in Texas or in the entire United States. Life after bankruptcy proceedings may not be as difficult as a person thinks.
Source: The Times Picayune, "Ray Nagin faces foreclosure on Dallas townhouse, WWL reports," April 24, 2014