Texas: What laws protect me from my creditors in debt settlement?

Texas debt settlement laws and federal debt settlement laws generally apply to the collections efforts made by your creditors. There are not necessarily a great deal of laws that specifically govern the process of debt settlement. The debt settlement process occurs when you negotiate a private settlement with your creditors in order to pay back a smaller amount than the total sum of money that you owed. For example, if you owed $10,000, you might offer your creditor a lump sum payment of $7000. If the creditor did not believe that they were going to get paid the money owed (because you were behind on payments or in danger of filing bankruptcy, for example), they might prefer to accept that one time lump sum payment that you are offering so they at least get some of the money that is owed to you.

The laws that protect you in this case aren't really specific to debt settlement- if you get the settlement deal in writing and then the creditor backs out, you may be protected by contract laws though. Depending on the specifics of the situation, there may also be other laws that protect your settlement agreement itself.

However, the law does provide you with some general protections as you deal with your debt. For example, creditors are not permitted to make false claims that they are taking legal action; they may not collect debts outside the statute of limitations and they may not harass you or call you early in the morning or late at night.

If you wish to enter into a debt settlement arrangement or if you are dealing with creditors you believe are treating you unfairly, you should strongly consider speaking with an experienced lawyer for guidance and advice on the matter before taking any action.