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Debt Settlement  in Texas
Call Today: (877) 274-1260
If you successfully complete our program, it’s possible that you’ll enjoy these benefits:
Settle your debts for less than you owe
  (read here for full details about how much you can expect to save)
Resolve your unsecured debts in 18 to 60 months
  (read here for full details on how long our program lasts)
No Up Front Fees - Don't Pay Till You See Results!
Texas  Debt Settlement

(The author of this article is not a lawyer, nor should this article be substituted for legal advice by a practicing attorney. This is for educational purposes only, and before determining the legal remedies available for creditors, please rely only on the advice of a licensed Texas attorney about your situation. For legal advice, please contact a lawyer.)

Debt settlement is also known as debt negotiation or debt reduction, is a relatively new way for dealing with your debt problems. In a debt settlement program, by negotiating with a creditor, it is possible a client may be able to settle their debts for less than the balances they owe and as a result get out of debt much faster than just paying the minimums.

Debt settlement is a good solution for consumers feeling overwhelmed with credit card debt that find themselves either falling behind on their payments or just able to afford the minimums. Considering the savings, in may  be worth considering if you find yourself in any of the aforementioned situations. As with any debt solution, however, there are potential downsides to debt settlement that should always be considered prior to enrollment. First, debt settlement may have an adverse impact on your credit.

Two other drawbacks to consider before choosing debt settlement include 1) the possibility of legal action being taken by the creditor to collect the full balance and 2) the possibility of creditors harassing you until the debt is settled.

Thankfully, if you're doing debt settlement in Texas or even debt settlement in Florida these concerns may be lessened somewhat. Why is Texas debt settlement so preferable compared to a lot of other states? The reason is Texas has highly favorable debtor laws that give consumers a lot of rights and protections when it comes to past due unsecured accounts like medical bills, credit cards, repossessions, and personal loans.

How State Collection Laws Benefit Texas Debt Settlement

Every state has falls under federal law that say if a collections agency is collecting a debt, they are legally obligated to stop contacting a consumer if the consumer sends a Cease and Desist letter and/or a Power of Attorney notifying the collection agency that a third party is responsible for handling all communications with the creditor. Texas law takes it a step farther and not only limits harassment from collection agencies, but also from the original creditor as well. In most states, when a consumer falls behind on their payments and the debt is still being collected by the original creditor (the bank that originally lent you the money or the hospital that serviced you, for example), then the creditor is reserved the right to call the debtor on a daily basis in order to collect whatever is owed, and as a result, most debt settlement clients do in fact experience phone calls during the program, particularly in the early stages when the accounts are being handled by the original creditor as opposed to a collection agency. 

Although there are legal protections from harassing phone calls for Texas clients, they should expect calls in the program, however.  That said, the protections offered go above and beyond most states, giving the client more rights and remedies for violations made.  Also, please note that since Franklin Debt Relief is not a law firm, however, we cannot help you to exercise your rights under these laws, although we can certainly help direct you to the resources necessary for you get protection from creditor harassment such as lawyers who specialize in helping in these types of situations. 

Texas Debt Settlement and Texas Homestead and Garnishment Laws<

For Texas debt settlement clients, their wages and home are completely protected, which gives the creditor even more incentive to settle. Given the fact that creditors already have every incentive to settle even with clients who reside in states with less favorable debtor laws, Texas debt settlement clients are in an even stronger negotiating position with their creditors. What does this actually mean? Typically it means even greater protection in the event of a lawsuit and greater savings than what is typical. Let me explain.

Although most accounts will settle, some accounts do not, and instead creditors opt to pursue legal action instead to collect the full balance. After all, creditors are always reserved the right to sue debtors to collect a past due account, regardless of whether the consumer is taking any action to resolve the outstanding debt.

In the event a creditor sues a consumer in court and wins a judgment, they'll usually go about executing the judgment in one of the following ways:

1) Wage garnishment---contacting your employer and asking that they set aside a percentage of your wages every paycheck until the debt is paid back in full. (It's illegal for an employer to fire you for this unless more than one creditor is garnishing your wages).

2) Lien on your property---obligates you to pay back the creditor with any proceeds from the sale or refinancing of the property. A creditor prefers to put a lien on your home since it usually increases in value over time, which means the proceeds from your home's sale will be higher, and thus they're more likely to actually get paid back.

3) Seizing your bank account---contacting your bank, showing the proof of judgment, and asking to withdraw any monies held in deposit under your name.

Fortunately, Texas laws protect debtors from having their wages garnished (unless you authorized in writing to allow your creditor to garnish your wages) and entitle Texas consumers to 100 percent homestead protection in the event of a lien. (Note: this does not apply to tax liens, alimony, or contractor's liens or second residences, rental properties, etc..) One downside, however, is that bank accounts are not exempt under state law.

In sum, these are major advantages for Texas debt settlement clients.  When you consider Texas state laws, debt settlement makes even more sense for the credit card companies, debt collection agencies, and most importantly, for the consumer.

Please note that lawsuits are still possible even if you reside in Texas and in the event you are sued, Franklin Debt Relief cannot represent you because we are a law firm.  The above is for educational purposes only and FDR makes no guarantees about its accuracy, although every effort has been made to make sure it’s not erroneous.  Please  consult with an attorney for information about your situation. 

Texas Debt Settlement and Community Property Laws

If you are married, reside in Texas, and are seeking debt settlement services, you should enroll any and all debts that were accumulated during the marriage by both you and your spouse. Just because the debt is owned by only one partner the other partner is not exempt from having to pay for it as well under Texas law. Creditors know this and may use it to their advantage in the collections process.  In other words, they can potentially not only hold you liable for any debts you incurred during your marriage, but also you spouse, even if they are not listed on the account whatsoever. 


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