How Can I Get Out of Debt in Texas?

Debt can be a heavy burden, no matter the amount you’re dealing with. It’s impossible to keep up with the payments, and you may not know what to do or where to turn for help. You might find yourself asking, “How can I get out of debt in Texas?” Thankfully, there are several options for residents within the state.

With creditors calling and hounding you for payments, you may be feeling overwhelmed and alone. This is where a Fort Worth debt consolidation lawyer can help. An attorney can fight for you and advocate for your rights when it comes to cases of extreme debt.

Debt can wreak havoc on an individual and their family, but having the right legal assistance can help you get back on the right track and put an end to the spiral of payments and stress you’re experiencing. It’s time to get yourself out of debt.

Common Kinds of Debt for Texans

Many Texas residents have some kind of debt attached to their name. In the state of Texas, the most common types of debt include the following:

• Auto Loans: In 2017, the average auto loan for Texas residents was $23,515. Owing a large amount on a vehicle can have a frustrating impact on one’s life, especially if you’re not able to keep up with payments and your vehicle is repossessed.
• Credit Card Debt: The average amount of credit card debt Texans held in 2017 was $6,139. Credit cards can be an effective and useful tool for building credit history and achieving financial success. Unfortunately, they can also devastate your finances if used incorrectly.
• Mortgage Loans: These loans accounted for the highest amount of debt held by Texans in 2017 at $172,889. In some cases, if you find yourself struggling with the debt associated with mortgage loans, you might qualify for a loan modification, a type of assistance that allows a reduction of your loan amount, lowers payments per month, and extends your loan’s time frame.
• Student Loan Debt: In 2017, the average amount of student loan debt of Texas individuals was $30,549. The unfortunate reality of these loans is the fact that the lenders and the school end up benefiting more from the loan than the individual who took it out.

Unfortunately, some of these debts can result in the owing individual having to face a debt collection lawsuit. Thankfully, there are options in these cases, and depending on the elements surrounding your debt, you may be able to get your case dismissed.

Bankruptcy in Texas

If you are struggling with the crushing weight of debt, you may want to act quickly to mitigate the chances of foreclosures, stop the calls from creditors, and get back on the right financial track for you and your family. For some individuals, the correct course of action is filing for bankruptcy.

In Texas, there are two main types of bankruptcy. These include:

• Chapter 7 Bankruptcy: In these kinds of filings, some of your possessions can be given to a bankruptcy estate for sale. However, your primary home, car, and other items of personal property up to a certain value are exempt. The main benefit is having your debts discharged.
• Chapter 13 Bankruptcy: An appealing alternative to Chapter 7 bankruptcy, this filing is a way to set up a repayment plan so your debts can be paid down instead of having to liquidate some of your assets.

Other Ways to Get Out of Debt in Texas

Though it might not be possible to completely get rid of your debt outside of declaring bankruptcy, there are ways to mitigate the amount you owe and the ways it might affect your daily life. These options are considered debt relief and offer a litany of approaches to solving your debt problem. These include:

• Debt Consolidation Loans: A debt consolidation loan is one big loan that is used to pay off multiple debts. Instead of making a range of payments each month, you only pay one. The interest rates on these depend on your credit score and whether or not you have the ability to put up your car or house as collateral to back your loan. However, it is important to remember that this does not get rid of your debt automatically but simply rolls it into one payment that is easier to keep track of.
• Debt Management: These programs can help reduce interest rates and help pay off debt without having to take out another loan. These programs mainly target credit card debt. They can help make your monthly payments more affordable. However, like a debt consolidation loan, debt management does not offer a quick fix to getting out of debt; rather, it takes commitment and time to work toward financial freedom.
• Debt Settlements: With a debt settlement approach, you can pay off your debt for less than what is owed. The payment is usually made in one lump sum that must be agreed to by the creditors. It is, unfortunately, a long process and can damage your credit score.

FAQs

Q: Does Texas Have a Debt Relief Program?

A: There are several programs offered in the state of Texas that help residents achieve debt relief. These include debt management, debt settlements, debt consolidation loans, declaring bankruptcy, forgiving credit card debts, or getting a home equity loan. There are also several programs that can help you with certain financial situations, such as food stamps and programs that assist with mortgage foreclosures.

Q: Does Debt Go Away After Seven Years in Texas?

A: In the state of Texas, the statute of limitations on debt is four years, or the time period given for filing a claim to collect debt. Once this time period expires, creditors cannot come after people and file a claim to recover that debt. However, you can still owe money; the creditor just cannot file. Even if it has been more than four years, negative information can still show up on your credit years for at least seven years.

Q: What Happens If You Don't Pay Your Debt in Texas?

A: If you don’t pay your debts in the state of Texas, a creditor can sell your debt to a collection agency, usually for less than its face value, and the collection agency will come to you to pay the debt in full. It’s smart, if you owe a debt, to act quickly so your debt is not sent to a collection agency.

Q: How Can I Settle My Debt Without Paying?

A: If you decide not to file for bankruptcy or seek a debt settlement, there aren't any other ways to get rid of your debt without paying. For most cases, making the minimum required monthly payments and chipping away at the total amounts in any way you can is the right option.

Contact a Fort Worth Debt Consolidation Lawyer

At Steele Law Firm, PLLC, our number one priority is giving your unique financial situation the care and attention it deserves. If you’re hoping to get out of your debt in the state of Texas or at least mitigate it, we are here to help you feel some relief.

Contact Lindsay D. Steele today, a trusted Fort Worth debt consolidation lawyer. Let her help you navigate the complexities of Texas debt management and relief.