Falling behind on debt payments can lead to a cascade of unwanted actions being taken against you. To start, creditors may harass you in an attempt to recoup the debt. Although there are certain laws placing limits on how far these creditors can go in their attempts to collect payment, they often overstep. If that harassment isn’t enough, you may also find yourself subject to garnishment, which can really turn your financial well-being upside down.
A writ of garnishment is a legal judgment that creditors obtain that essentially redirects debtors’ money to them without any action on the debtors’ part. Although wages earned from an individual are exempt from these writs, a creditor may seek to garnish an existing bank account. This means that this bank account can be drained, and any wages deposited into it can be taken by a creditor to satisfy any outstanding debts.
Those Texans who are behind on their debt payments are usually struggling to get by paycheck-to-paycheck. Therefore, any garnishment of their income or savings can leave them uncertain about how they are going to make ends meet. The good news is that Texans can prevent this garnishment and its correlating stress from occurring by taking legal action through the bankruptcy process. A bankruptcy proceeding can put an automatic stay on debt collection practices until such time that the bankruptcy proceedings are finalized.
Far too many Texans struggle to try to overcome overwhelming debt. While their efforts are admirable, this pursuit is often without end and therefore unjustified. Instead of tirelessly seeking debt payoff, many Texans would be better served by pursuing either Chapter 7 or Chapter 13 bankruptcy. To learn more about how these processes can stop creditor harassment, stay foreclosure, and lead to real debt relief, Texans who are facing insurmountable debt should reach out to a bankruptcy attorney of their choice. This could help you obtain the fresh financial start you need.