The television show "American Chopper" attracted many fans in Texas, but one of the reality show's stars has continued the real-life drama in bankruptcy court. Paul Teutul Sr., the famously cranky patriarch of the show, now faces opposition from the trustee of a bankruptcy court. Teutul filed for Chapter 13 bankruptcy protection in February 2018, but the trustee has filed a motion expressing doubts that Teutul can make the payments required by the bankruptcy plan.
Filing for bankruptcy could be an effective way to help a Texas resident get control over their finances. However, it can also have an impact on a person's credit score. While it is possible to repair a credit score, the only way to do so is by spending time making payments and taking other steps to overcome past mistakes.
Although Texas consumers who are falling behind on payments might feel powerless when confronted by debt collection agencies, the Fair Debt Collection Practices Act places limits on the behavior of these companies. This federal law establishes that collectors cannot act in an abusive manner toward people.
Chapter 7 is, by far, the most common type of bankruptcy individuals file for. According to data, 794,960 total bankruptcy filings took place between January 1st, 2016 and December 31st, 2016. Out of all those filings, 490,365 were Chapter 7.
In most cases, Texas consumers who file for bankruptcy receive immediate protection from creditors trying to collect debts. Usually, courts issue an automatic stay when a bankruptcy case is filed. This court order prevents collection actions while the bankruptcy case is in progress. Bankruptcy law holds creditors accountable if they willfully violate the stay.