Debt settlement is one of several means to achieve debt relief. State variations occur. One of the more fortunate states in debt settlement, Texas, offers the individual with highly favorable laws to abet the process.
Debt settlement (debt reduction, debt negotiation) is a means of resolving your debts. It is a way of fixing the problem without resorting to judicial processes. The debtor arranges with the creditor for a settlement of the monies owed. This is frequently between 30% and 60% of the total original debt due.
The debtor may approach the creditor on his or her own, use a debt settlement agency or hire a lawyer. Whatever method he or she elects to implement, debt settlement is one way to help prevent an increasing debt load.
Texas is a state in which debtor laws are sympathetic to the process of debt settlement. The procedure follows a specific pattern.
During the course of debt settlement, particularly between the stoppage of payments and the negotiation with the creditor(s), it is standard procedure to receive haranguing calls from collection agencies and the various creditors. This is not valid in Texas. In Texas, laws ranging from those under the Texas Deceptive Trade Practices/Consumer Protection to the Homestead Act to Federal Laws affect how collection agencies and creditors may act.
Texas laws and regulations provide the debtor protection in the following ways. State laws prohibit creditors indulging in
Furthermore, under the Homestead Act, creditors cannot repossess the home, except in specific instances e.g. the loan was for the home. Neither can lenders garnish wages.
While you can act on your own behalf or rely on an agency, for the best results consider hiring a lawyer qualified in debt settlement, Texas and its laws.