December 8, 2022 by Nesibe Selma
Lone Star Legal Aid Helps Navy Veteran Protect Income from Collection
Jim Bradson is a Navy veteran who relies solely on his Social Security Retirement (SSR) income. During the pandemic, he became indebted to four companies, including the e-commerce company, PayPal. Bradson was already in settlement repayment with the other three companies when he received notice that PayPal sold his debt to a collections company, which then filed a lawsuit. Bradson reached out to Lone Star Legal Aid’s Military & Veterans Unit to evaluate his options. With his fixed minimal income, Bradson’s primary asset was his house with a mortgage he wanted to keep. Though he had never filed for bankruptcy before, it seemed like a feasible option, given his piling consumer debt issues.
Attorney Lori Fergie took on his case and advised him regarding the stages of debt collection suits. The statute of limitations on debt in the state of Texas is four years. In that time, it is possible to settle the lawsuit or prove yourself “judgment proof.” While most people assume bankruptcy is the easiest way to handle a collections suit, it is best to check first if your inability to pay is exempt by law from a creditor’s claims. You can claim to be judgment proof if:
- Your income is from a protected and exempt source, such as social security or veteran’s benefits.
- You do not own any assets of great value other than a primary residence, vehicle, household items, and tools of your trade.
Fergie advised Mr. Bradson that there was another, likely easier option: she contacted the debt collector to request a hardship waiver outlining the extent of Mr. Bradson’s hardship and his finances. The collector considered and accepted the claim without any additional documentation to formal request. The case was settled with a single email, rather than a formal letter or additional proof, saving Mr. Bradson from the trouble of declaring bankruptcy, court fees, and even appearing in court. With the assistance of the MVU team, the Navy veteran was able to keep his home and continue receiving his income without worrying about debt.
Lone Star Legal Aid (LSLA) is a 501(c)(3) nonprofit law firm focused on advocacy for low-income and underserved populations by providing free legal education, advice, and representation. LSLA serves millions of people at 125% of federal poverty guidelines, who live in 72 counties in the eastern and Gulf Coast regions of Texas, and 4 counties in Southwest Arkansas. LSLA focuses its resources on maintaining, enhancing, and protecting income and economic stability; preserving housing; improving outcomes for children; establishing and sustaining family safety, stability, health, and wellbeing; and assisting populations with special vulnerabilities, like those with disabilities, the aging, survivors of crime and disasters, the unemployed and underemployed, the unhoused, those with limited English language skills, and the LGBTQIA+ community. To learn more about Lone Star Legal Aid, visit our website at www.LoneStarLegal.org.
Media contact: media@lonestarlegal.org
