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Posts Tagged ‘collection’

What Happens If You Stop Paying Credit Cards?

In Uncategorized on September 8, 2010 at 9:15 am

I advise my clients to stop paying on credit cards once they decide to file a bankruptcy case. What happens if you stop paying them? You can expect to receive collection notices from the credit card company for about three months. Your account then gets sold to a collection company. The collection company will attempt to collect the debt for about three months. Finally the debt is sold to a lawyer. It takes the lawyer about three months to obtain a judgment from court. The judgment can lead to garnishment and a judgment lien on real estate.

So why do I tell clients to stop paying credit cards? To eliminate unnecessary spending prior to filing bankruptcy. Clients use their income to pay for the fees and costs of bankruptcy. Getting the bankruptcy case filed stops all debt collection activities. Stop paying credit cards helps to get the bankruptcy case filed quicker.

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Stopping lawsuits

In Uncategorized on March 18, 2010 at 11:08 am

Can you stop a law suit by filing for bankruptcy? You sure can. Filing a bankruptcy case stops all collection law suits and foreclosures. It protects you from your creditors obtaining garnishments and liens. And it does even more. Your creditors cannot contact you and they cannot collect from you. Filing a bankruptcy case is a powerful tool to protect yourself and your assets.