When does a bankruptcy make sense? If you lost your job, have credit card debt and are unable to make your monthly payments on your unemployment check you might want to file.If you are receiving phone calls that are harassing you may want to file.
Often deciding to file has to due with the amount of debt that you have acquired. When you get behind on your bills creditors begin with harassing phone calls and threats. This can be very upsetting. Many individuals decide to file just to stop the calls. Once you miss a payment your account gets categorized as a “collection account” by the lender. The first collectors usually are civil. You will get calls, usually every day, asking for payment. You can choose to ignore those calls or take the call and explain your situation.
The challenging part comes after the original creditor decides to stop trying to collect. It will either assign or sell the debt to a collection agency. Collections companies can say some pretty outrageous things to people to collect a debt. If you have a thick skin and can wait it out to find a job, this can be an option. If you want to stop the calls you may consider filing bankruptcy for peace of mind. Once you file you can begin the rebuilding process. The Law Office of Mayer and Newton offers a creditor education course to help raise you credit score. Call us today