What are the options if you can’t pay your debts besides bankruptcy?
Bad things happen to good people. First of all, realize you are not alone. According to CBS News about 8 out of every 10 Americans lives paycheck to paycheck. This is truly an astounding number, especially because it applies across all income levels, even high earners!! Any unexpected expense or drop in income can cause tremendous havoc and stress. It happens all the time.
In this post, I will only go over one option in detail. It seems to be the least understood.
Before I start, I’ll briefly mention another option.
Debt Relief Agencies. First, be very wary of these and don’t respond to advertisements. There are a ton of shady companies out there where you’ll pay a lot each month and not solve the whole problem. Especially watch out for those whose idea is to collect money from you, save it up, then negotiate for you one debt at a time. Of course, whichever debt is second or fourth in line is not happy and will sue you.
THE MAIN I’M DISCUSSING:
TAKE STEPS TO PROTECT ASSETS AND DEAL WITH CREDITORS
This involves the assistance of an attorney as part of an overall plan. NEVER just ignore the problem. Ignoring the problem can lead to seizure of bank accounts, garnishment of wages, or worse.
Any of these events can make it much harder for an attorney to eventually help you. Most such actions cannot be “undone.” An attorney can help best before these serious actions take place.
This is referred to by terms such as “judgment proof,” or, more appropriately, “collection proof” – keeping you protected from creditors whether or not a lawsuit is filed against you.
I represent clients in this type of plan (not many attorneys do; it’s a long-term commitment). We might decide to delay the filing of your case, or perhaps plan to not file bankruptcy at all!! My goal as your attorney is to keep bothersome creditor calls away from you, advise you on anything involving your financial life to the extent I can, and advise you on “asset-protection.”
I do what a bankruptcy does, essentially, if you are in the right position, or I can get you there. It is not filing a bankruptcy. It is often chosen to avoid the unpleasantness of going through that legal process, or because filing a case would present too many complications.
Peter Blinn
For over 35 years, listening to clients and putting them at ease, while finding solutions and helping achieve future goals, in Marion County, Lake County. Citrus County, Sumter County, and The Villages.
