Monday, February 2, 2009

Texas Debt Settlement Program Helps You Avoid Bankruptcy and Legal Problems

Creditor harassment is one the biggest culprits in bankruptcy filings. Anyone delinquent on their bills will easily cringe from the bombardment of daily collection calls and legal threats. However, if you’re a Texas debt settlement practitioner, who wants to fight creditor harassment and bankruptcy, good news is up ahead!

Texas has “pro-debtor” laws that diminish the incidence of creditor harassment and creditor lawsuits. As a Texas debt settlement practitioner, you may issue a cease and desist letter to a pestilent debt collector. Under this legal notification, you are exercising your rights under the Fair Debt Collection practices (FDCPA) to stop the nasty collection calls from coming to your home.

While a cease and desist letter generally stops third-party debt collectors from calling, in Texas it also extends to original creditors. Texas extends the power of the cease and desist letter from the point of non-payment until the debt charge-off date, typically six months after the date of non-payment. This is a key benefit to stop collection calls since the original creditor may still be the party initiating collection calls until a debt is written off, sold, or reassigned for collection.

As a Texas debt settlement practitioner, you can also be successful settling a creditor lawsuit. If a creditor sues and wins a judgment, a common maneuver is to pursue a garnishment order ("wage garnishment"), which forces an employer to garnish a percentage of the debtor's wages. (Note: Wage garnishments vary from state to state; the amount ranges between 10-25%.)

However, Texas, the debtor-friendly state protects a person's wages from being garnished. Again, as a Texas debt settlement practitioner, relief can be in sight in the event of a property lien. The objective of the property lien is for the creditor to collect on an unpaid debt from the equity of a property whenever the property is sold by the debtor. Fortunately, as a Texas debt settlement practitioner, you can shelter your home through a 100% homestead protection. (Note: The Texas homestead exemption has no dollar value limit.)

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