Avoiding Bankruptcy Can Be A Simple Process

Anytime a family is in the midst of filing for bankruptcy it’s a serious step. We’re talking about years taken away from your credit life when you take this route. It’s an unfortunate path, but in all honesty some individuals (maybe even you) have to use it. Divorce couples are a prime example of those who usually need it to let them go their separate ways easier. However, if they just would have worked things out during their divorce it wouldn’t be an issue. The point is you need to look at all options before making a major decision.

Action through Inaction

Through the years many people have realized the importance of taking action when the chips are down. You may feel as though you have to do something in order to make progress, but that’s not always the case. In fact, when it comes to bankruptcy sometimes the best thing to do is nothing at all. See, creditors have to spend money on attorney fees and take you to court if they want to see any money back. It could cost them thousands of dollars and if they notice your balance is less, they probably won’t sue you.

No Money at All

Even if you wanted to pay off your debt, is it possible that you just can’t? The truth is that any good business person knows that you cannot squeeze blood from a stone and if they are smart, they won’t even try. Consider a situation where you owe three different creditors 500 dollars, 1,500 dollars, and 4,500 dollars. The first creditor is most likely not going to take you to court for 500 dollars because that would barely cover the legal fees that they need to pay.

Another important factor here is that they can only take from certain resources. If you’re sitting there thinking they’re going to take away food, clothing, furnishings, social security, unemployment, and assistance money, they can’t. In fact, they can’t even take away from 75% of your earnings. Even if they continue to call, send them a letter stating you have no intent to pay. By law they have to stop attempting to collect.

While this is a huge benefit, you have to remember to keep from acknowledging anything. Anytime you do talk to a collector, make them aware that you have no recollection of any debt. This way the statute of limitations is still under effect and won’t start over if you acknowledge that you owe them money.

Try Negotiating

Even though we wanted to cover this, we know most people won’t take advantage of it. There is something about having to call up creditors and asking them for a lower overall cost. Just remember though, for those that do utilize this, most companies want to settle out of court. Just knowing the smallest details such as this could change the way you think about filing for bankruptcy.

Then of course there is always the chance you go and talk with a bankruptcy lawyer. Getting the lay of the land before taking the leap is extremely important. Let them tell you about what you can expect and the path it will lead you on for the next decade. It’s a long journey and many individuals and families don’t realize it in the beginning. Heck, they may even help you start a debt settlement plan for the upcoming months.

When it’s all said and done we recommend utilizing a credit counseling program. Taking this route will allow you to get the appropriate help and understand the in depth material covered in bankruptcies and creditors. It will show you how the future is going to look, as well as the other side if you choose to stay away from bankruptcy all together. All you need is a reputable company to help you along the way like Nationwide Debt Solutions. Utilizing a big name like this will help you get back on your feet in no time.

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