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Hi - my name is ***** ***** I'm a Business litigation attorney.
There is no wage garnishment allowed in Texas (except for child support and spousal support). Thus, your friend doesn't have to worry about that. However, bank garnishments are possible, which could seize her wages once deposited into a bank account.
Thus, it is best for her to offer a settlement agreement with the lender and get an acceptance in writing from them and then begin paying them under the agreement. It's not necessary for the creditor to know the source of the money.
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In reading your information, I would like to clarify something if she owes lets say 2K can she agree to pay a lesser amount and they may agree to that just to get the loan closed? Or is it she the agreement of the amt. of payment that can be negotiated?
She can actually negotiate both.
It is very likely that the creditor would take a lesser amount in a LUMP SUM payment. For instance, if she owes $2000 and offers the creditor $1500 to be paid at once, they could accept that as payment in full.
However, if she wants to make monthly payments, she should not expect a discount. Instead, she would have to negotiate a period of time in which to repay the money ~ $200/month for 10 months, $500/month for 4 months, etc. - whatever she can afford to pay.
Can they continue to call her and people she knows to discuss this, can they continue to they kind of harassment?
If they reach a settlement, that would be the end of it - - and the calls should stop.
However, until she reaches an accord and settles the debt, they can call UNLESS she writes them a letter and demands that they stop contacting her under the Fair Debt Collection Practices Act. If she does this, they will have to stop calling. BUT, if she does this, they will proceed straight to suing her because they can no longer try to make contact with her.
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