If you have excessive credit card debt in Texas, you are not alone. Millions of Americans have a substantial amount of debt, that in some cases, they are not able to repay. In some states, creditors are able to garnish up to 25 percent of debtors’ paychecks in an attempt to collect unpaid credit card funds, medical expenses and student loans. Texas, however, is one in four states that bans creditors from wage garnishment, according to NPR.org.
If you have ever been in a situation where you are behind in making payments on an account, you may have been contacted by a creditor seeking to collect the delinquent funds. In some cases, creditor calls may be sporadic and involve people simply reminding you that you need to make your next payment as soon as possible. Some creditors may even be willing to work out a payment plan where they reduce your interest rate or minimum payment in an attempt to help you catch up. There are other creditors, however, that could be harassing and may infringe on your legal rights. At the Law Office of Douglas J. Powell, PC, we know that creditor calls may be intimidating and you may need an advocate to stand up for your rights in these types of situations.
You are lying awake at night worrying about your debts or refusing to answer when the phone rings. You are falling behind on major bills such as your mortgage, car payment or taxes, and you dread opening the mailbox because you know it will contain more warnings.
If you are caught in financial turmoil with excessive credit card payments, medical bills, mortgages and other expenses, you are not alone. According to U.S. Bankruptcy Courts, 833,515 people filed for bankruptcy in a 12-month period ending March 2016. Of that number, approximately 523,394 people filed for Chapter 7 bankruptcy, while 302,193 people filed for Chapter 13 bankruptcy. Bankruptcy is designed to help people regain their financial bearings and climb out from under the pile of creditors and debt. There are significant differences between the two most popular types of bankruptcy, and you should understand these variances in order to choose the one that best fits your specific situation.
If you file for Chapter 7 or Chapter 13 bankruptcy in Texas, you will be required to attend a meeting of creditors as part of the bankruptcy process. The meeting of creditors gives creditors, as well as the trustee, an opportunity to ask questions regarding the bankruptcy.
With the holidays quickly approaching, you may be rushing out to purchase gifts, organize parties, decorate the home and attend the many activities that make the season festive. Since affording this sudden financial burden can be difficult for working families and single parents in Texas and across the country, a number of Americans use their credit cards as a way to purchase their holiday items. Sadly, this is how debt accrues, and you may find it hard to pay off the credit card debt that accumulates as a result of these extravagant purchases. Here are some things that you may want to keep in mind when using your credit card this season.