Why You Shouldn't Put Off Filing For Bankruptcy

Many potential clients contact our office upon receiving notice from either their employer that their wages will soon be garnished or from their bank that the funds in their account have been depleted due to garnishment. In a nervous frenzy, these panicked clients race to find out bankruptcy pricing and gather necessary documents for filing all before their next pay date when they'll receive 25% less income or before the next time funds will be garnished from their bank account. These potential clients face a massive amount of stress as they are unexpectedly having to come up with the fees and documents for filing within a very short window of time. Unfortunately, the window of time is so short that some clients are unable to file in time and experience the devastating loss of income and assets that results from garnishment. It is even more disturbing when these same clients easily qualify for Chapter 7 bankruptcy and would not have had to repay the creditor any money at all or experience the loss of income and assets had they only filed their bankruptcy case earlier. When talking to these clients, I find that many thought they would be able to work something out with their creditor. Others thought the creditor would not find out about their new job or would not have the ability to take funds from their bank accounts. Yet, some clients, because of not hearing anything from the creditor after judgment, assume or hope the creditor just went away. These are all bad assumptions to make. It's extremely rare that creditors will provide you with a reasonable payment plan, especially when they have the option to garnish your wages and bank accounts. Also, just because you don't have a job at the time a creditor is granted a judgment, it doesn't mean that the creditor will give up on collecting payment. Your creditor will simply lie in wait, periodically performing background checks, waiting until you gain employment or place funds in a bank account. Finally, lack of communication after judgment is never a predictor of whether a creditor will pursue a garnishment to collect payment. With that being said, it is best to contact a bankruptcy attorney immediately upon learning a lawsuit has been filed against you or, even better, when a creditor begins threatening legal action. This will provide ample time to prepare for the costs and the documentation needed to file a new bankruptcy case. It will also prevent the loss of income due to missing work for court appearances. Most importantly, it will prevent the unexpected loss of income and assets due to an unexpected garnishment. If you are dealing with a creditor who is threatening legal action against you or if you are being sued by a creditor, contact Douglas County Bankruptcy Lawyers today for a free consultation at (770)485-6620.