Whether or Not to File for Bankruptcy by Daniel R. Michaelson
Although bankruptcy is something that sometimes needs to happen you'll find that there are more ways to avoid it than you might think. As in a divorce where couples should try to work things out if at all possible you'll find that bankruptcy should be something that you approach with care with a lot of investigation into other options. Bankruptcy is never an easy way out so take some time to review what other options might have especially in light of some of the new bankruptcy laws.
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 take you to court if they want to see any money back. It could cost them thousands of dollars if they notice your balance is less they probably won't sue you.
No Money to Give
Unfortunately there are many people out there that just don't pay their bills. However if you're reading this we don't imagine you're one of them. Sometimes you just can't come up with the loot to make them go away. When this happens you often see people turn to bankruptcy but the truth is you don't have to at all. Seriously if you have three separate creditors calling you owe them all a huge amount of money they're going to take each claim into account. More times then not all three of them will just let it go.
Even if they won they would need to look into getting it enforced Remember that most of your budget is completely out of the creditor's reach. For instance they can't touch you clothing furnishings food money Social Security payments unemployment public assistance even 75% of your wages. Even if you pay the two higher amounts it unlikely that you will get taken to court The truth is that sometimes doing nothing at all can result in your case getting written off.
Remember that as annoying as phone calls dire letters are a debt collection agency needs to stop attempting to collect a debt once you inform them in writing that you have no intention of paying it. One thing that you might wish to try is to deny knowledge of the debt whenever you speak with the creditor because acknowledging that the debt exists restarts the statute of limitations that will legally erase your debt.
Negotiating your Debt Away
Everything we mentioned above is why creditors always want to settle out of court. Not only will they alleviate all the legal fees they'll be able to collect some of that debt back. This is why it so important to have all the knowledge of the subject at your fingertips. Without it you'll be running to the bankruptcy lawyer without even batting an eye.
Not only does this tell your creditors that you mean business talking with a professional in this field can help you decide on the right action for you. You can tell your debt counselor that you are interested in avoiding bankruptcy they will be able to put together a debt settlement plan for you. Remember that debt negotiation can be done informally or as part of a debt settlement plan.
When it's all said done we recommend utilizing a credit counseling program. Taking this route will allow you to get the appropriate help understand the in depth material covered in bankruptcies 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 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.
Daniel R. Michaelson is well known public speaker author in the area of consumer debt relief has been helping clients for nearly 20 years. You can learn more about his debt relief program edebthelp. com. Whether or Not to File for Bankruptcy
