Asset Protection in Texas
If you’re undergoing financial difficulties, it usually feels like you’re all alone in your suffering. The truth is, hardworking families in Dallas-Fort Worth and throughout Texas fall behind on their mortgages, auto loans, and other debts every day.
When you start missing payments, you risk creditors taking possession of your most prized belongings, such as your home and your car. At DebtStoppers, we’ve developed asset protection strategies that help you keep your property. Call or text us today at 469-646-0750 to sign up for a free asset protection consultation, and one of our skilled Texas attorneys will explain how bankruptcy laws allow you to protect your assets and the requirements for qualifying.
Asset Protection Laws in Texas
When you finance a large purchase like a home or car, you enter into a contract with a lender. The bank fronts you the cash you need to make your purchase, and you agree to make monthly payments until you pay back what you borrowed.
These types of loans are usually "secured" by whatever you are purchasing. This means that if you start missing payments or otherwise default on the loan, it is perfectly legal for the lender to seize ownership of the property you bought.
For example, if you took out a loan to pay for your Texas home, you probably signed a deed of trust that allows the lender to take ownership of your residence in the event of your default. The lender is legally permitted to foreclose on your home and force you out, regardless of how long your family has lived there.
How To Protect Your Assets From Creditors
Fortunately, Texas bankruptcy laws offer protection from repossession and foreclosure. In addition to letting you keep your property, filing for bankruptcy will eliminate your debts and give you a fresh start.
In Texas, your options when filing for consumer bankruptcy are Chapter 7 and Chapter 13. Chapter 7 gives you fast and straightforward relief by wiping out most of your unsecured debts. Even though Texas law permits a court-ordered trustee to sell some of your property to repay your debts, our clients seldom lose a thing.
However, if you are looking for guaranteed asset protection, Chapter 13 never requires you to liquidate your property. Rather, Chapter 13 reduces and reorganizes your debts into a reasonable 3-to-5-year repayment plan. So long as you stick to the schedule, you'll be able to hold onto your belongings.
Another major asset protection benefit in bankruptcy is the automatic stay. The stay is a court order that immediately stops your creditors from pursuing collection activities against you — including foreclosure and repossession. In fact, once the stay is issued, your creditors can’t even call you anymore!
Common Causes of Asset Collection
Asset collection refers to the practice of debt collectors taking your assets as payment of your debts. Frequently, if a creditor can get a court judgment against you, they can require you to liquidate your property to pay them what you owe.
Creditors can secure a judgment against you when you fall behind on:
- Personal loans
- Payday loans
- Credit cards
- Medical bills
- And more!
DebtStoppers Can Keep Your Assets Safe
DebtStoppers offers asset protection plans that will let you keep what you own. Call or text us today at 469-646-0750 to schedule a free debt review with one of our experienced asset protection Texas lawyers.
Don't sit back and let your creditors take your hard-earned possessions! Call or text DebtStoppers today at 469-646-0750 to request your tailor-made asset protection bankruptcy plan.