One of the reasons I became an Asheville bankruptcy lawyer is that I believe the debt collection industry is unfair. Frequently, the debt collectors know that their targets are judgment proof, meaning the collector can only receive money voluntarily from the borrower – not through the legal process. Still, their approach is to continue calling. They hope to intimidate, annoy, or even act like a debtor’s friend in order to convince them to write a check.
The critical thing to do when called by a collector is to rise above the noise. Stay focused on the monthly obligations which are most important to your family’s well-being. Most of the time, this means monthly utility bills, secured debt payments for transportation and housing, medical costs, groceries, and other necessities for living.
Once a budget for necessities is in place, the next step is to consider tools available which might help propel a financial recovery forward. Perhaps that means eliminating debt in a Chapter 7 bankruptcy case. In other situations, a Chapter 13 bankruptcy works better to catch up on missed payments for important property. Regardless, a potential client’s focus should be on improving their balance sheet. Through careful planning, accumulating savings, contributing to retirement, or budgeting for healthcare insurance all can become a real possibility.
The goal of bankruptcy is to use a case to eliminate or adjust debt obligations dragging and keeping a budget down. Bankruptcy can help create monthly savings in a budget, protect financial assets via exemptions, and reduce the costs of borrowing in the future. If you are ready to figure out your options, and live in Western North Carolina, I’d be pleased to speak with you during a free, initial bankruptcy consultation.