Options other than Bankruptcy

Many people apply for bankruptcy as a last resort. This is mainly due to the stigma attached to being a bankrupt. Unfortunately, most people choose to resolve their financial problems through many other means, totally discounting the option of bankruptcy.

But let me paint a picture of what it might be like if you defer applying for bankruptcy and instead choose some other routes to repay your debts.

Many people have credit card debts so high that they are forced to default. If you are unable to pay your credit card dues, you will be charged over-the-limit fees by the credit card company. On top of that, the credit card company will likely raise the interest rates they charge you. They may also likely engage a debt collecting agency. This will further raise your debt because their fees will eventually be passed on to you.

If the debt collector is not able to get you to fully pay up your debt, you will receive a lawyer’s letter informing you of an impending lawsuit. Naturally, there is no way you can contend with this lawsuit so you will either have to pay up or be severely censured. Furthermore, you will be charged with the legal costs incurred. What follows is the court will empower the creditor to control your bank account and paycheck to pay off your debts. If that is still not enough, the court will order that your assets be liquidated to repay your debts. And as this happens, interest on your debt will continue to accrue.

How about mortgages and vehicle leases? If you default on your house installments, the bank will foreclose on your home. If you fail to pay your hire purchase or lease payments on your vehicle, it will be repossessed. And if selling your home or vehicle is insufficient to repay your debts, the bank will sue you for the balance. Then the added legal fees and ongoing interest are levied on you again.

As you can see, if you do nothing, things will get worse. So what if you engage a debt counseling service? Not every debt counseling service is good. If they succeed in helping you, fine. But if they fail or are fraudulent then it gets worse for you.

So what else would people resort to in the face of these financial problems? They attempt to get a payday loan or auto title loan to pay off at least some of the urgent debts. But that would be the worst thing to do because of their exorbitant interest rates. People who fall into this trap often end up trying to repay these loans with their credit cards and the vicious circle continues.

If only you would consider bankruptcy instead of those other less-than-effective options, you will discover that bankruptcy offers a much better solution.

Please call my office at (813) 200 4133 today and I will explain how to use bankruptcy as a means for being free of your debts once and for all. Don’t worry, we offer free, non-obligatory consultations, no strings attached.