In a case where a debtor consistently fails to pay off debts, the creditor may be forced to initiate a lawsuit against the debtor. However, the creditor's rights will never be considered more important than the debtor's rights. Texas laws ensure that the debtor is protected and such debtors often benefit from consulting attorneys as well as financial experts to help them understand the various aspects of such default in the loan repayment.
In the event that a debtor is being harassed by creditors for loan repayment because the debtor is not paying the debt, the debtor may wish to consider consulting an attorney to initiate a legal investigation into the matter if the loan repayment or the loan amount is a subject of dispute between the debtor and the creditor. Such debtors' protection rights are crucial in order to protect innocent people from fraudulent scammers who may be posing as credit agencies.
It must be noted that if any debtor wishes to initiate an investigation into the credit report, such a petition must be made within 60 days from the notice of the repayment action. In the event that the debtor declares bankruptcy and receives welfare benefits from a state or federal agency or becomes the victim of a fraudulent credit agency or identity theft, the debtor can obtain such credit reports for approximately one year.
There may also be cases where various aspects of the credit report are incorrect and can be disputed. In such cases, when the investigation is complete, the debtor is entitled to not only get a copy of the credit report but also of the corrected reports that have been prepared by the investigating agencies. It is important to understand in that type of situation that it is not only the creditor who has rights. The debtor also has rights that need to be protected.
Source: Federal Trade Commission, "Credit repair: how to help yourself," Accessed on June 11, 2015