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Question about debt collection in TX

  • Thread starter cncrnd_daughter
  • Start date

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cncrnd_daughter

Guest
What is the name of your state? TX
My parents have acquired a significant amount of credit card debt due to having several unexpected expesnes in the last few years. They can not make their minimums on some of the accounts, but are sending what they can each month. They have been turned over to collection agencies. My father tried to consolidate the debts but the company wanted more in a lump sum per month than he could afford. However, that agency, and a relative who works in the banking field, did tell my dad that in Texas the credit card company can not sue you or eventually, have property taken away or your wages garnished. Is this true? It doesn't sound right to me, but my parents are at the point where they are feeling like even sending in what they can is not worth it anymore and I want to be able to give them accurate information. Thank you for your help.
 


Ladynred

Senior Member
That's only partially true.

You CAN be sued in TX, but they cannot garnish wages. They CAN garnish bank accounts and put liens on property. If they're sued, there are generous exemptions in TX for real and personal property, just as in bankruptcy. Judgment's can be collected, but they will resort to siezing non-exempt property, placing liens, and siezing security deposits, tax refunds and basically hound you for the length of a judgment. A judgment is good for 10 years and renewable, so they can go on forever.
 
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cncrnd_daughter

Guest
Thank you so much for responding. I will pass on that information to my parents. Do you have any recommendations for an avenue that they can pursue? They are most willing to pay their debt, they just can not afford to pay each month what both the creditors or the consolidation company are demanding. Thank you again.
 

Ladynred

Senior Member
A lot depends on who you're dealing with and the circumstances. Are they dealing with original creditors or 3rd party collectors ?

If accounts have been charged off, they'll go to 3rd party collection agencies, otherwise you're dealing with 'in-house' collections.

You have a lot of rights and more possibility for negotiation with a collection agency. You got it, the worse it is, more likely it is they'll work with you.. pretty sad system. You might want to read the Fair Debt Collections Practices Act (FDCPA) here:
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

This Act governs 3rd party collectors, what they can and can't do and your rights.

Original Creditors are a whole other animal.. and a nasty one with sharp teeth. They aren't obligated to deal with you and they are not controlled in their collection practices by the FDCPA. Once again, the worse shape your account is in, the more likely they are to 'deal', offering lowered interest rates, 'hardship' programs, and possibly even settlement.

Are your parents on a fixed income or does one or both of them work ? Do they own their home ? What other assets do they have ? How much is the debt load ? Some things to consider in looking for options.
 
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baylorbear

Guest
first thing is first..have them change their phone number. DON'T give it to anyone!!! Have them save the numbers of the collection agencies and give them a call in a couple of months and "shot them a deal". GET IT IN WRITING. When the collection folks agree to the deal, then you won't have to worry about liens, etc.

Good luck
 

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