Like every U.S. citizen, residents of Tyler, Texas, want to lead comfortable lives. They work hard to reach their financial goals so that they can buy their dream home or dream car. Some Texans use credit to help achieve their financial goals.
During financial duress, many Texas residents are unable to repay their loans. Delinquency in loan repayment can attract severe consequences for such debtors. One may find himself at the precipice of foreclosure as well as in a debt trap. Assuming that they follow the right legal channels, the creditors who had given the loan to such a debtor have the right to recover their loan by doing things such as auctioning off the assets that belonged to the debtor.
Debtors' rights, as well as their responsibilities, can be affected by the various deadlines that are present during a bankruptcy case. To protect their rights to object in certain cases, the duty of understanding and acting on the deadlines lies on the creditors. If a creditor fails to heed the deadlines, there can be major damaging effects to the creditor.
In Texas, and the rest of the country, consumer debt is at an alarming level. Be it credit card debt, medical debt, student loan debt, home mortgage or a car loan, many people are struggling to keep up with regular payments due to financial difficulties that plague them. In fact, some people even have difficulties keeping up with the basic requirements, such as utility bills and day-to-day expenses for themselves and their families.
Many Texas residents know that the Federal Trade Commission is entrusted with enforcing the Fair Debt Collection Practices Act, which protects debtors from being harassed by debt collectors and creditors. The act lays down clear rules and regulations pertaining to those practices that debt collectors and creditors cannot employ while recovering debt.
The fate of Dallas, Texas-based Energy Future Holdings, which filed for bankruptcy in April this year, has become uncertain once again. With two loans already approved by a bankruptcy court, the company was on the verge of finalizing a plan to restructure its debt and thus get closer to emerging out of bankruptcy. The approval of a third loan would have made this process a certainty. But opposition from some creditors, who felt the plan gave higher preference to other lenders, has forced the company to think of alternatives.
Money is required for almost everything, whether it's to host a birthday party or to make a child happy with a favorite toy. However in tough financial situations, paying for everything through cash may not be possible and, as a result, many people end up making purchases with their credit card. Even if it is not purchases, sometimes unexpected healthcare costs may also affect finances of the family.
Texans dread the thought of debts. However, sometimes due to medical or other financial emergency, the person may need additional finances, which may lead to an unplanned debt. People may try to make regular payments, but financial conditions may not allow them to repay the debt in whole. While people may be stressed about timely payments to the financial company, calls from the debt collector may cause more strain.
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.
In Texas as elsewhere in the country, many people carry consumer debt. Most are able to pay it off over time, but sometimes unfortunate circumstances lead to debt that cannot be easily paid off. This often leads to harassment from debt-collection agencies.