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.
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.
Filing for bankruptcy, as we discussed previously on our Tyler Texas bankruptcy law blog, provides consumers with protection against their creditors' efforts to collect on their debts. This protection is known as the automatic stay. While it's a powerful benefit, its protection is not absolute. Let's look at some situations where the automatic stay does not trump your creditors' rights.
When Tyler residents file for bankruptcy - whether Chapter 7, Chapter 13 or another form of protection - they gain the immediate benefit of the automatic stay. The automatic stay halts efforts to collect on your debt while the bankruptcy proceeds through the court. This is a powerful tool for consumers, but it's important to understand the limitations of the automatic stay as well as creditors' rights with regards to the automatic stay.
The professionals at the Law Office of Gordon Mosley have decades of experience protecting the legal rights of Tyler residents struggling with consumer debt. During this time we have seen all manner of collection techniques, among the most concerning of which can be creditor lawsuits.
Tyler residents struggling with consumer debt may be familiar with some of the tactics that debt collectors use. These all too often cross the line from the legitimate exercise of creditors' rights into harassment, even threats. Making matters even more complicated and disturbing is the fact that the information about one's debt relied upon by collectors may be incorrect or even completely made up.
Sometimes, Tyler residents struggling financially reach a point where it feels like they have no control. The tactics that creditors use against you feel invasive, demoralizing and infuriating and it seems they can get away with just about anything they want.
Sometimes a person in Texas has no choice but to go into debt. Company-wide layoffs, a serious illness or an unexpected and costly home repair or car repair could all put a person in a difficult financial situation. Sometimes a person is forced to make tough choices. Should they pay the car bill this month if it means they wouldn't be able to buy groceries? Should they use a credit card to pay the electric bill? These are difficult decisions to make and, unfortunately, the debts associated with having to make such choices can spiral down to the point where not only can a person not catch up on their debts, but they can't even afford their basic living expenses.
Even the most financially responsible people in Texas may someday face an unexpected financial calamity that causes them to be unable to pay their bills. Being unable to pay your bills can be incredibly stressful, especially once the calls from debt collectors start coming in. However, there are limits to what debt collectors are allowed to do.
Millions of Americans throughout the country, including many from Tyler, Texas, and the surrounding area, finding themselves in debt and suffering from financial difficulties. Regardless of the reasoning, whether it was a lost job, a serious injury or illness, or simply poor decision-making or excessive spending, if you are suffering from financial turmoil and are being hounded by debt collectors, life can be stressful. It is important to recognize, however, that creditors, in an effort to get debtors to pay back what they owe, are still entitled to certain rights.