Debt and Debt Collection

Know Your Rights

Resolving Debt

If you are in debt, you may be able to negotiate with your creditors to enter into a repayment plan, for a reduced payment amount, or to temporarily suspend your payments. You may also work with a nonprofit credit counseling agency to find a solution or may want to consider obtaining a loan that will consolidate multiple debts into a single loan with a lower interest rate to make it easier to manage payments.

If you are unable to negotiate a plan with your creditors to repay debts, you may choose to file for bankruptcy. Bankruptcy is an option that may stop collection efforts, provide you with relief from your debts, and give you a financial fresh start.

Debt Collection

Debt collectors cannot harass you into paying a debt. Harassing behavior can be in the form of continuous phone calls throughout the day, phone calls after certain hours, contacting your family or employer to pressure debt collection, using abusive language, and contacting you after you have requested them to stop. A debt collector in Texas must comply with the federal Fair Debt Collection Practices Act as well as the Texas Debt Collection Act.

If you have been sued and the court enters a judgment against you, you may be at risk for some of your property to be taken by the creditor to pay toward the judgment. A judgment is a court order stating that you owe the debt collector money because of a lawsuit.

Some property, however, is protected from being taken from you, such as your primary residence, your car, Social Security and retirement account payments, unemployment benefits, and child support payments. If you are employed, Texas law does not allow creditors to seize earnings from paychecks. Wages may be garnished in some situations (e.g., unpaid child support, unpaid taxes).

Your Legal Options

Depending on your situation, our lawyers can help you understand your rights and options, prepare and file legal documents, or represent you in court.

We can assist with:

• Protecting your rights in unlawful debt collection practices
• Helping you understand the debt collection process, including what happens when a lawsuit is filed against you
• Preventing or fighting wrongful taking of your property
• Providing advice for legal options to satisfy a debt

Additional Resources

Texas Law Help: Legal Information, How-to and Forms for Texans