Legal Question in Bankruptcy in Texas

I live in Texas. I have a loan with Avant a company in Chicago that was done online. I have been paying for a year and a half. The loan was for $20,000 and I have paid $21,400 but the interest is 35.9% so I still owe $20,000 in interest. I have more debit than income and have borrowed from peter to pay paul and can't any longer. I am looking at bankruptcy my question is

this is an auto debit from my checking account. What do I do? Do I close my account so they can't debit the payment? I have read that wages can't be garnished in Texas and they can't put you in jail for not paying but can they take my wages after I deposit in the bank? If I close the account and open at another bank can they find it and take money? I need to know what is best before my next payment. Also if I don't go the bankruptcy route, owing this much do you think they would sue me?

Asked on 1/26/17, 8:57 am

1 Answer from Attorneys

Andrew Nichols Law Office of Andrew B. Nichols

Closed the bank account and they will not be able to auto debit. Then open a new account and it is very unlikely that this creditor can discover the new account. You have an absolute right to file bankruptcy and if your income is low enough then you qualify to file Chapter 7. Based on my experience (27 years) the creditor would not sue you in the bankruptcy to recover the lost interest charges, etc.

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Answered on 1/26/17, 9:12 am

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