Bankruptcy May Help You Keep More Than You Think

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A recent report released by the National Consumer Law Center (NCLC) shows
evidence that debt collectors may be forcing more families into poverty.
The report claims that many states across the country may not offer as
much protection to consumers from debt collectors that allow them to sustain
necessary living needs when it comes to satisfying a judgment with seizing assets.

On a grade scale of A to F, the report didn’t show a state that actually
met all qualifications in order to receive an A rating. The state of Texas
for example received a solid B rating. The NCLC has several few basic
standards in line to help determine if the state helps families meet support
needs when debt collectors take legal action. Their findings found that
some families actually suffer quite a bit when legal action from a debt
collector happens.

The following points were observed:

  • Debtors can have wages garnished so much to where it pushes their household
    income under the living wage.

  • A vehicle considered of average value may end of
    getting repossessed if the debtor uses it for means of living productivity (getting to work, etc.)

  • Debtors may have issues in being able to preserve the value of their family home.

  • Debtors lose a good amount of household goods through a sale or seizure.

  • Debtors may not be able to preserve at least $1,200 in an account to place
    toward essential living costs.

Bankruptcy can help you deal with legal action against you or even prevent
legal action from being taken. This is often why it is suggested to not
ignore a summons or notification you are being sued. Discuss your situation
with a qualified
Dallas bankruptcy attorney.

Reference:
http://www.txbankruptcyblog.com/2013/12/articles/bankruptcy-news/report-many-states-put-families-at-mercy-of-debt-collectors/

http://www.nclc.org/images/pdf/pr-reports/report-no-fresh-start.pdf

By | 2017-12-13T02:07:34+00:00 December 31st, 2013|Bankruptcy|Comments Off on Bankruptcy May Help You Keep More Than You Think