People who are seeking relief from debt have the option to declare bankruptcy. Depending on their overall financial situation, most individuals will file either Chapter 7 or Chapter 13 bankruptcies to stop debt collection and have their debts discharged. However, there are certain types of debts that cannot be discharged through the bankruptcy process, known as non-dischargeable debts. If you are overwhelmed with debt and considering filing for bankruptcy, even if the majority of your debt appears to be non-dischargeable, an experienced attorney can help you explore your options.

Texas Bankruptcy Non-Dischargeable Debts

There are several types of non-dischargeable debts, or debts that cannot be wiped out when you file for bankruptcy. These debts include:

• Student loan debt – Student loan debt is often a source of significant debt. Loans which are government-funded or guaranteed educational loans are usually non-dischargeable. However, in cases where the debtor can show that repayment would cause them undue hardship, they may be dischargeable.

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A Debt collector’s purpose is to recover money owed on delinquent accounts. Sometimes the Debt collector has been hired by a creditor to try to recover the delinquent debt and other times the Debt collector has purchased the debt from the original creditor. Some examples of why debt collectors may contact you are unpaid medical bills, delinquent credit card debt, delinquent phone/ utility bills, delinquent car loan payments, deficiency balances on repossessed or foreclosed property, back taxes, etc.

However, just because a Debtor is delinquent on a debt or account, this does not mean that a Creditor or Debt Collector has free reign to try to collect the debt by any means they see fit. The Fair Debt Collection Practices Act (FDCPA) is a law that sets out the parameters that a Creditor/ Debt Collector is allowed to attempt to collect on a delinquent debt. Harassment and its definitions are set out under the law. If a creditor violates the FDCPA a Debtor has the right to sue for damages created by the violations of the FDCPA.

A few actions that are NOT allowed to be undertaken to collect a debt: