We all feel the financial strain of debt and hard times, especially in our current economy. But for thousands of Texans, debt has become much more than just a negative mark on their credit history. Every year, thousands of Texas consumers face default judgments for debts they cannot pay. And laws in Texas allow consumers’ bank accounts to be frozen or seized in an effort to collect on those debts. Those seizing the accounts are called turnover receivers – a court-appointed officer who has authority to withdraw money from consumer bank accounts.
Often times, consumers don’t know this has happened until they try to access their funds. This results in further hardship and financial strain on already stretched Texans. And to make matters worse, most consumers don’t know their rights or options to fight a default judgment.
Daic Law Among Law Firms Helping Clients with Debt
Recently, the Houston Chronicle published an article titled “Debt Collectors Can Empty Texans’ Bank Accounts – Even When They Don’t Know.” The article explains Texas law regarding default judgments and the impact on consumers. The article also highlights alarming trends, such as the rate of debt collection lawsuits increasing by 73% in the last decade. Daic Law founder and attorney Megan Daic was featured in the article:
“Megan Daic, a consumer attorney in Houston, said similar stories are common. Since the pandemic, many more modest- to middle-income consumers have called her for help to untangle a financial crisis after a turnover receiver has been appointed to their case. Compared to the indigent, these Texas wage earners tend to have more access to credit — and can encounter hardship when they face job loss, illness and other setbacks.
“These life events happen,” Daic said. “And that’s on top of health and medical issues, divorce. That’s usually what seems to happen, people just end up in this tough spot.”
Life events that could happen to anyone are causing thousands of Texans, and likely millions of Americans, to accrue debt that they otherwise would have been able to pay off. Law firms like Daic Law are available to help clients who are facing financial crisis understand their rights and the options that are available to fight debt collection efforts, including a default judgment.
Read the full article in the Houston Chronicle here: https://www.houstonchronicle.com/news/investigations/article/texans-delinquent-debts-court-bank-lawsuit-17136660.php
You can also view the article via pdf here: Texans’ bank accounts may be quietly emptied by debt collectors