Debt Relief Programs Texas

Texas Law Loan Repayment Assistance Program

LRAP UPDATE November 28, 2022:

The moratorium on federal loan repayments has been extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation challenging the program is resolved. Payments will restart 60 days after resolution. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023, payments will resume 60 days after that. Please check the Federal StudentAid website for updates and additional information.

During this pause, Texas Law LRAP will not accept new or renewing applications for federal loan repayment assistance, but will continue to provide bar loan assistance for qualified applicants. LRAP will provide program updates as the federal government updates the status of its loan repayment policies.

To help you prepare for student loan payments to resume, please make sure that you update your contact information in your profile on your loan servicers website and in your StudentAid.gov profile. If you have additional questions, please check out Preparing for Repayment to Resume, on the Federal StudentAid website.

If you have any questions, please email the LRAP Administrator at .

How To Get Debt Relief In Texas

Sarah Edwards | October 19, 2022

Summary: If you’re struggling with debt in Texas, SoloSuit can help you find the relief you need.

Texas is among the most populous and economically diverse states. With a population of over 29 million and an economy larger than many countries, The Lone Star state is undoubtedly a force to be reckoned with.

However, not all is rosy in the state of Texas. Like many other states, it has been hit hard by the economic downturn. This has led to sharply increased levels of debt for plenty of Texans.

It’s no wonder that many Texans are struggling to make ends meet. Luckily, there are multiple options available for those who need help getting out of debt. We will go through some of the most popular methods for getting debt relief in Texas.

Let’s get started.

Debt Collection And Garnishment

Texas has strict rules that govern garnishment. Many types of property are protected. If your property was garnished or seized illegally, see the Exempt Property In Debt Collection guideto learn how to get it back. Also see Protect Your Social Security from Garnishment to learn how to stop your bank from handing over protected social security payments.

Also see:

Recommended Reading: What Debt To Income Ratio Is Good

Read Also: How Does Bankruptcy Work In Mn

How Much Do Debt Negotiation Services Charge

The top debt relief companies usually charge a percentage of your total enrolled debt for using their debt negotiation services, ranging between 15 and 25%. Heres a quick example: for $15,000 in debt, your fee will be a maximum of $3,750. Remember, the Federal Trade Commission prevents debt settlement companies from charging upfront fees to their customers.

Debt Relief Texas Solutions

About Us

Regardless of how much or how little it is, debt is impossible to ignore. Whether you are struggling with repayment of or your mortgage is proving hard to pay off, you will be in a constant state of worry.

However, with our services by your side, you can let go of your worries and let us take over. Debt Relief Experts of Texas are skilled in the art of providing debt relief Texas to people who are in dire need of it. Enrolling in our debt relief programs Texas will give you immense peace of mind and satisfaction.

We offer a wide range of options, such as debt consolidation Texas, tax debt relief, mortgage debt relief, or , helping you get out of debt as soon as possible. Get in touch with us today to discuss your debt relief Texas options with us.

You May Like: Who Does The Bankruptcy Trustee Represent

Utilize These Texas Debt Relief Programs

As a Texas resident, you should be proud to know that you may qualify for state-specific services that help Texans who are financially struggling. Check out these Texas debt relief programs to see if you are eligible:

• Lone Star Card: Texas Electronic Benefit Transfer system uses the Lone Star Card to provide access to Supplemental Nutrition Assistance Program food benefits and Temporary Assistance for Needy Families cash benefits.
• Temporary Assistance for Needy Families : Provides cash payments to help families pay for food, clothing, housing and other essentials.
• Repatriation Program: Provides temporary assistance, in the form of a loan, to qualified U.S. citizens and their dependents. Recipients must be identified by the U.S. Department of State as having returned from a foreign country because of destitution, illness, war, invasion, or similar crisis, or are without resources.
• Feeding Texas: This is the largest hunger-relief organization in Texas, involving a network of 21 member food banks that reaches over 5 million Texans annually with food and resources.
• Supplemental Nutrition Assistance Program : Helps people buy the food they need for good health. People also can buy garden seeds with SNAP benefits.
• Private Student Loan Relief: Provides a network of financial counselors who link troubled families with trustworthy agencies for financial assistance with private student loans.

During Our Initial Consultation We Will Discuss Bankruptcy Law And Your Debt Relief Options In Depth

With recent changes in bankruptcy law, many people are unaware of their options. Our Texas bankruptcy lawyers work hard to help you get the long-term and immediate debt relief you want. The moment you file for bankruptcy, you will get an automatic stay which will stop creditor harassment, stop foreclosure and stop repossession. We will help you understand your options and tailor a plan to meet your needs:

• Chapter 7 bankruptcy: If you qualify for Chapter 7 bankruptcy, you may be able to get a complete discharge of your debts within a few months.
• Chapter 13 consumer bankruptcy: By entering a debt consolidation plan, you will get the chance to pay back your creditors what you can afford and may be able to have your remaining debt discharged.
• Chapter 13 business bankruptcy: Get the time and space your business needs to establish itself and get the chance to pay back your creditors at your own pace.
• Discharge of income tax in bankruptcy: It is possible for individuals to discharge federal income tax in bankruptcy, but certain conditions must be met.
• Discharge of medical bills in bankruptcy: Many people who are in debt because of their medical bills are relieved to know medical bills can be discharged in bankruptcy.
• How to prepare for bankruptcy and life after bankruptcy: You may qualify for debt consolidation or debt reorganization for a fresh start.

Don’t Miss: Local Real Estate Auctions

Student Loan Debt Relief In Texas

Owe federal student loans? You can consolidate them through StudentLoans.gov and then apply for an income-based repayment plan that offers a low monthly payment and loan forgiveness. These plans are primarily based on family size and income. If you have a low income, your monthly payment could be as low as zero dollars per month. Police officers and teachers in Texas can get loan forgiveness in only ten years with the Public Service Loan Forgiveness Program . There are some fantastic income-based student loan debt relief and consolidation programs for Texas residents to turn to that you can learn about by visiting this page next.

For more information on how debt relief programs work, including Texas options, visit this page next.

Above Average Credit Card Debt & Increased Home Ownership And Rental Costs Highlight The Need For Debt Relief In Texas

A rising concern in Texas, and across much of the United States is the spectacular rise in home buying and rental costs. Research on Zillow shows sharp increases in costs since the financial recession of 2008, which is understandable given recovery, though the recent increases may be outpacing the typical household annual earnings and repayment capabilities. An interesting study in the Austin Business Journal shows that even a slight increase in prices would put homes out of reach for many Austin households.

You May Like: Macomb County Sheriff Sale

Pros And Cons Of Each Option

Debt Consolidation:

• PROS: Simplifies your monthly payments by lumping all of your debts into one bill. A debt consolidation loan can lower your interest rate on your overall debt, saving you money in the long run.
• CONS: One problem with getting a debt consolidation loan is collateral. In order to qualify for a loan you need to provide collateral to get the loan and many people dont have collateral. Another problem is it can be difficult to qualify for a debt consolidation loan if your credit is already poor.

Debt Settlement:

• PROS: Debt relief without bankruptcy. If you have access to sufficient funds, you can retire your credit card debt in a matter of months, not years.
• CONS: You will receive collection calls and letters during the debt settlement process, so you have to have a thick skin. Also, one or more of your creditors may not cooperate and decide to sue you. Although litigation is possible, it is very rare. After 15 years working in this industry, the litigation rate for our clients is less than 2%.

Consumer Credit Counseling Service :

Bankruptcy:

Do Nothing:

Frequently Asked Questions About Debt In Texas

Can a debt collector garnish my bank account in Texas?

Texas law does allow creditors to garnish your bank account. This is called a Writ of Garnishment. They cannot garnish your wages, but once your money arrives in your bank account, they have the right to collect.

What assets are exempt from creditors in Texas?

A creditor cannot put a claim on certain assets you own to collect owed debt. Generally speaking, items you need to live are exempt from claimants, such as your car, your homestead , two firearms, tools you need for work, sporting equipment, two horses, 12 head of cattle, and bicycles.

Can a debt collector freeze my bank account in Texas?

Under some circumstances, Texas law does allow for bank accounts to be frozen. However, the creditor needs to first get a judgment against you to collect funds from your bank account.

Can I be sued in Texas for credit card debt?

The State of Texas does allow creditors to sue people who owe them money. Creditors will generally first try to collect from you directly, but if they believe you have no intention of paying the debt, theyll likely close your line of credit and file a lawsuit.

Can you go to jail in Texas for debt?

U.S. federal law prohibits debt collectors from threatening to send a debtor to jail. However, if you are summoned to appear in court, dont ignore this notice. A no-show is considered to be contempt of court and a warrant in your name may be issued this can land you in jail.

Also Check: What Is The Difference In Chapter 7 And 13 Bankruptcy

What Not To Do When In Debt

Sometimes, debt might come with a combination of other things, such as a medical emergency or a financial crisis. In times like this, you might not be in the right state of mind to make any important decisions. When the time comes, debt collectors and creditors will be calling you, but you will be unable to pay.

So, what do you not do? Here are some things you should avoid, no matter how overwhelmed you feel.

If you have to choose between unsecured and secured loan payments, pay for the secured debt since your asset is on line here. For instance, if you have to choose between paying a hospital bill or a car payment, do the latter. Otherwise, the creditor might take away your car.

Do not take a loan against your homeâs equity. In doing so, you will put your home at risk and lose the roof over your head. If you take a loan of this sort and are unable to pay for it, the creditor might foreclose your property, leaving you without a home.

Do not take out money from your retirement account or savings for repayment of unsecured debt. Some experts may even call it financial suicide, so you should avoid it at all costs.

Do not borrow money from your workplace retirement account unless you have no other option. In case you lose your job, these loans could turn into inadvertent withdrawals. That triggers a tax bill. It is certainly not what you want after being hit by a financial crisis and debt.

How Does The White House Legally Defend The One

The Department of Education contends that its onetime student loan debt relief plan is protected by the Higher Education Relief Opportunities for Students Act of 2003, also known as the HEROES Act. That law authorizes the Secretary of Education to change any regulations related to any student financial assistance programs for Americans who âsuffered direct economic hardship as a direct result of a war or other military operation or national emergency.â

Biden announced his one-time student loan debt relief plan with Secretary of Education Miguel Cardona in August.

The White House says that the COVID-19 public health emergency gives the Department of Education the legal basis to cancel student loan debt under the HEROES Act.

The US has been in a public health emergency ever since the Secretary of Health and Human Services declared one because of COVID-19 on . That emergency declaration has been extended many times since, most recently on .

Read Also: How To Get Your Debt Paid Off

You May Like: Debt To Income Ratio Calculation

Federal Coronavirus Relief For Individuals

The U.S. government offers several programs to aid both individuals and businesses impacted by COVID-19. For individuals, the recently passed coronavirus stimulus package, formally known at the Coronavirus Aid, Relief and Economic Security Act, provides direct cash payments to individuals within certain income thresholds. Youll be eligible to receive these payments whether or not you or someone you care for has been impacted by COVID-19. For instance, individuals can receive a maximum of $1,200, but only if their adjusted gross income is $75,000 or less. Married couples can earn a full $2,400 if their AGI is $150,000 or less, and heads of household earn a full $1,200 if they make $112,500 or less. These check amounts are subject to phase-outs of $5 for every $100 they make over the thresholds up to the maximum cut-off amounts. Individuals wont receive anything if they make above $99,000. The income cutoff for married couples and heads of households is $198,000 and $136,500, respectively.

Though these provisions are provided at the federal level, Americans can also take advantage of other forms of relief. Specifically, several banks are helping customers affected by coronavirus. Numerous companies, such as Google, are also offering assistance to coronavirus impacted people.

Debt Consolidation Can Help You Simplify Your Payments

Debt consolidation is taking multiple debts and combining them into one single payment. This can be done by taking out a debt consolidation loan or using a balance transfer credit card.

The goal here is to make your debt more manageable by reducing your interest rate and giving you one monthly payment to make.

Don’t Miss: What Happens After Bankruptcy Trustee Meeting

Is There A Government Debt Relief Program For Texans

Government programs are available to help with federal student loans, but not for credit cards, unsecured loans, and collection accounts.

To learn about Texas, credit card debt relief programs, call 376-9846. Programs can assist you in dealing with medical bills, credit cards, and most unsecured loans. Get the facts about each program, how they work, and find out what your best option is.

Cost Of Living Crisis In 2021

The winter storm plunged large swaths of Texas into subfreezing temperatures, overwhelming the states electricity infrastructure and causing major power outages. At the height of the crisis, about 4.5 million Texan homes and businesses were left without power. Even though Texas uses natural gases , coal , renewable resources and nuclear power sources, they still suffered. Since nearly half the total power generation capacity for the states main electric grid was offline, millions of Texans endured days without electricity.

Additionally, houses in Texas are generally built with insulation to combat heat rather than freezing cold. In other words, the homes and business buildings in Texas are not winterized. However, once investigations were launched against the Electric Reliability Council of Texas , the ERCOT CEO was fired because he neglected warnings about the damage a storm of that magnitude could do.

During the crisis, prices of gas soared to historic heights as utilities struggled to get gas to residential customers and electric companies struggled to secure fuel for their power plants. There were even points during the blackout when gas was traded for 150 times higher than it had been traded prior to the crisis.

You May Like: Can Income Tax Be Included In Bankruptcy

To Report Fraud Waste And Abuse

All TDHCA employees and contractor employees have a responsibility to report waste, fraud and abuse within the agency. The public is also invited to share such concerns.

If you suspect fraud, waste or abuse please call 61-FRAUD or 613-7283.

Texas Coronavirus Relief Bill Rental Assistance Program administered by the Texas Department of Housing and Community Affairs

Falsification of documents or any material falsehoods or omissions in an Application to this program, including knowingly seeking duplicative benefits, is subject to state and federal criminal penalties. Landlords and tenants are particularly put on notice that 18 U.S.C. §1001 provides, among other things, that whoever knowingly and willingly makes or uses a document or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of the United States will be fined not more than $10,000 or imprisoned for not more than five years, or both.

This program has specific eligibility requirements and not all households may be eligible.

Funds may not still be available by the time a household applies.

Other program limitations may also apply please see for details.