Texans who are having financial problems are often concerned about the prospect of creditors repossessing certain properties. Various items can be taken as part of the collection process and those who are thinking that they have nowhere to turn should be aware of how a bankruptcy proceeding can help them. For example, a car could be vital to a person’s daily life and there is a concern that it could be repossessed. Filing for bankruptcy can put a stop to this.
When a person files for bankruptcy, one of the major benefits is that it allows them to put an end to the constant phone calls, letters and emails with which they have likely been inundated since the financial struggles began and they fell behind on their payments. There are several options when considering bankruptcy and an attorney can walk a client through all of them to decide on the best possible one.
Bankruptcy will not only shield a debtor from repossession, but it can end the constant calls, stop lawsuits from creditors, prevent foreclosure on a home, and stop bank seizures. Creditors who are running the risk of not getting their payments from a distressed debtor will take many steps to try and get those payments or take collateral in lieu of payments. Frequently, their behaviors toward a debtor will straddle the line of legality and propriety if not step over it completely.
There is no doubt that creditors have certain rights to try and collect on a debt, but the debtor can also reference the law and use the bankruptcy process to stop creditors from using underhanded and aggressive tactics to get payment. Speaking to legal professional who is experienced in debtors’ rights and creditors’ rights, especially regarding repossession, is the smart first step to getting back on better financial ground.