SHOULD YOU FILE FOR BANKRUPTCY PROTECTION?
I am often asked that question. In the end, it is only for you to decide. Here are my thoughts.
If your wages are being garnished causing you to miss a mortgage payment, home rent payment, or car payment, bankruptcy may be something you should seriously consider.
If you are consumed throughout the day about how you will pay your creditors, or your work or health is being affected by thoughts of how to deal with your creditors, bankruptcy may be something you should seriously consider.
Some will say life is too short to spend every waking moment worrying about how you will pay your creditors. Pride and a sense of responsibility are the common reasons why people may be inhibited from filing for bankruptcy protection. I have represented people of all walks of life. Some of my clients include individuals you would never think would need to file for bankruptcy protection. Clients I have represented include doctors, attorneys, ministers, certified public accountants, high wage earners, and even debt collectors. There are approximately 10,000 bankruptcy cases filed annually in central Indiana.
WHAT OPTIONS EXIST BESIDES BANKRUPTCY?
There certainly may be other options in dealing with creditors besides bankruptcy. Your case may be appropriate for exploring non-bankruptcy options. Below I have listed a few options:
1. Offer a lump sum settlement to your most pressing creditors. Some creditors will accept half or even less than half owed and charge off the balance. After being more than six months delinquent, many credit cards will accept a lump sum settlement of half the balance and charge off the rest.
2. Do nothing. That is make no payments to your creditors and allow sufficient time to pass so the statute of limitations for bringing a legal proceeding in court has expired. The statute of limitations for most debts is six years from the date of any activity on the account. I other words, six years since the last time you made a credit card charge or payment.
3. Should a wage garnishment be in place, please be advised that the maximum amount that may be garnished at any given time is approximately 25 percent of your net pay.
I offer affordable fees if you desire that I represent you in a civil collection matter.