There are a few states that will not allow a debt collector to garnish wages, and Texas is one of them.  

If you live in Texas and have too much debt or are having trouble with debt collectors, here are some valuable tips that you need to know:

If you, or someone you know, has gone through a time where you were not able to keep up with your debts, then you also know how stressful it can be!

Add to that a debt collector who calls all the time and may even make threats as to what they can do to you if you don't pay, and, well, it is really a bad experience.

But, if you live in Texas (and this will help everyone else as well), I have some good news and tips for dealing with and going through this tough financial nightmare:

We've been helping people solve their debt problems and deal with debt collectors for over 15 years.  

Once in a while, a prospect or new client tells us that they really don't know h

We take time to counsel and/or interview a prospect about their particular situation.

Even though each of our clients has too much debt in relation to their income and ability to repay their debts, each has a unique "reason" that led them to us.  

See if any of these sounds familiar:

• Loss of employment
• Divorce
• Illness or disability
• Too little fixed income after retirement

Once you start to fall behind or stop making the minimum payments required by the creditor, here's what happens:

At first, you start getting letters from the creditor warning you of the missed payment(s).

Then the calls start!  Lots of calls!

Now, at this point you cannot stop them from calling you (they have the legal right), you do not have to put up with harassment!  Such as:

• threaten violence or other criminal acts;
• use profane or obscene language;
• falsely accuse the consumer of fraud or other crimes;
• threaten arrest of the consumer, or repossession or other seizure of property without proper court proceedings;
• use the telephone to harass debtors by calling anonymously or making repeated or continuous calls;
• make collect telephone calls without disclosing the true name of the caller before the charges are accepted.

The penalties for violation of these laws by a creditor or debt collector are severe.  If you believe they have violated these laws, contact your state's attorney general's office (online is best) and file a complaint.  

We are in Oregon, so an Oregonian would go here:

Oregon Consumer Financial Protection

If the original creditor cannot get you to start making payments again or will not work with you to modify your account, then they may decide to charge it off and send it or sell it to a debt collector.

So, the letters and calls start again, but now, you can put a stop to these calls! 

If a debt collector cannot get you to start making payments or will not agree to a modification of your account, they may decide to FILE A CLAIM against you.

This would be done in your county's courthouse, and then you would be SERVED A SUMMONS.

I've written numerous blogs over the years that explain the who "Legal Process" that a debt collector may take.  For more information, click below:

"Don't Panic if you Receive a Summons!"

But for now, let me explain to Texas residents how they are protected from debt collectors as opposed to those who live in other states.

Once a judgment has been awarded (usually called a "default judgment" as the plaintiff/creditor wins by default), a creditor usually has several options:

• Apply for a writ of garnishment for your wages
• File a LIEN on your home or property
• Apply for a writ to LEVY the funds in your bank account

In Texas, the Texas Consumer Protection Laws specifically state that a creditor/plaintiff CANNOT:

• Garnish wages or
• Place a lien on your home (provided it is homesteaded properly)

They can apply for a levy to take funds from your bank account, so be very careful!!!

Here's a link to help you protect your bank account funds.

However, as far as your home or place of residence, you need to make sure it has been properly HOMESTEADED.  

I found a great site that I recommend that you visit:

Ken Paxton, Attorney General of Texas

Bottom line...

Good news:

If you live in Texas, debt collectors cannot garnish wages or place a lien on your home.

HOWEVER...

That doesn't mean that the responsibility for your debts goes away!

You have several options, such as:

• Debt Management
• Debt Settlement
• Bankruptcy

If you would like help in deciding which option is best for you, click below: