Author Topic: Debtor in Texas  (Read 909 times)

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Auditguy

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Debtor in Texas
« on: September 22, 2016 02:57:31 PM »
I have approximately $57,000 in debt with USAA. 35k in credit card and 22k in personal unsecured loans that I want to walk away from. I know Texas is a very friendly state for debtors but was wondering how aggressive is USAA?  Is it better to try and work out a deal with them?

Clydesmom66

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Re: Debtor in Texas
« Reply #1 on: September 22, 2016 03:10:34 PM »
I have approximately $57,000 in debt with USAA. 35k in credit card and 22k in personal unsecured loans that I want to walk away from. I know Texas is a very friendly state for debtors but was wondering how aggressive is USAA?  Is it better to try and work out a deal with them?

TX is a debtor friendly state when it comes to how long the SOL is for filing a lawsuit (4 years) and that they don't allow wage garnishment. The other major advantage is the Texas Finance Code 392 allows you to dispute the debt at any time as long as you invoke that code in your dispute letter.  Beyond that when you have just recently defaulted in an era when collection efforts are not as lax as they were in the recession you aren't as safe as you think you are.

However, when it comes to defaulting that is well within the SOL for suit USAA is quite aggressive in collecting.  You need to read your agreements because there is likely a right to set off on those loans and they could seize your bank account(s) without having to sue. USAA is also not known for selling their accounts to junk debt buyers and winning an original creditor lawsuit that is fresh is virtually impossible.

For that large amount of debt the chances of you just "walking away" are not good at all.  I would be seriously discussing your financial situation and debts with a seasoned bankruptcy attorney before you do anything.

If you have that much debt the lawsuit would not be in Justice Court it would be in District Court where they will follow all the rules. 
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Auditguy

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Re: Debtor in Texas
« Reply #2 on: September 22, 2016 03:24:14 PM »
wow that's depressing.  however it's good to know this   could I move my bank accounts. From usaa before I do this?

Auditguy

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Re: Debtor in Texas
« Reply #3 on: September 22, 2016 03:55:45 PM »
Besides bank accounts is there anything else they can go for?

Clydesmom66

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Re: Debtor in Texas
« Reply #4 on: September 22, 2016 04:01:06 PM »
could I move my bank accounts. From usaa before I do this?

You would be smart to do so before you default or file BK because the right of off set may come before the BK I am not certain.

Keep in mind also that USAA has a LOOOOOOONNNNNNNGGGGGG memory.  They are black listers and once you default or BK you will NEVER get credit with them ever again.

Besides bank accounts is there anything else they can go for?

If they get a judgment they can place lien(s) on personal assets like property and a home which would prevent sale or refinancing until you dealt with the lien.  Texas has generous exemptions for personal property so they cannot seize your car and auction it.  While they cannot garnish your paycheck once it hits your bank account(s) they can levy that and seize the cash.  If your paycheck is from an out of state employer there is a process by which they could seize it through garnishment.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Auditguy

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Re: Debtor in Texas
« Reply #5 on: September 22, 2016 04:55:52 PM »
My understanding is that under Texas homestead they can't touch your home

Clydesmom66

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Re: Debtor in Texas
« Reply #6 on: September 22, 2016 05:12:15 PM »
My understanding is that under Texas homestead they can't touch your home

They can't force it into foreclosure but they can place a lien on the property.  The lien prevents sale or refinancing until you satisfy the debt.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Auditguy

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Re: Debtor in Texas
« Reply #7 on: September 23, 2016 02:51:49 PM »
So I called usaa to try and work out a solution and they won't even discuss unless you are behind on payment. No proactive solutions at all

Clydesmom66

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Re: Debtor in Texas
« Reply #8 on: September 23, 2016 04:19:33 PM »
So I called usaa to try and work out a solution and they won't even discuss unless you are behind on payment. No proactive solutions at all

Go higher up the food chain.  The CSR on the phone has no power to do anything.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Flyingifr

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Re: Debtor in Texas
« Reply #9 on: September 23, 2016 05:00:04 PM »
So I called usaa to try and work out a solution and they won't even discuss unless you are behind on payment. No proactive solutions at all

Standard response. Look at it their way - as long as the payments are being made, why should they negotiate a lower balance or any other concessions? The only way you will get any concessions (no guarantee you will get any) is to get behind in payments - WAY behind. You said you intend to default anyway, so why not just do it? The notation "settled for less than amount due" on a CRA report isn't a good one so your credit will take a hit no matter what you do other than continue paying.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)