Even though we are in the business of helping people through bankruptcy, legally and sometimes even emotionally, we understand that filing is not always the best option for you. However, our greatest fear is for those who should file but decide not to for the wrong reasons, whether it be because of the stigma of bankruptcy, an inability to face financial reality, or opting for a "less than legitimate" credit counselor.
To help in your decision, consider some of the consequences of not filing bankruptcy:
Losing your car
More than likely, you have a car loan. Should that payment be one of the debts that goes unpaid, your car can be repossessed by the lender and sold to pay the loan. But here's the real pain in losing your car: it rarely covers the amount you owe. So, you could end up losing your car and getting sued for the difference. Bankruptcy stops the repo man, and in many instances, will allow you to repay the loan with much better terms.
This can be the biggest pain of them all. While the bank can't simply take your home like a car, they can foreclose on it. The process typically takes a few months. However, this does not mean you should wait until the foreclosure hearing to seek help. If you are behind on your mortgage, a Chapter 13 bankruptcy will allow you to catch up the missed payments over a repayment period of 3 to 5 years. Contact your bankruptcy attorney today, even if you're only behind a couple of payments.
Student loan collection
In-state tuition for the University of North Carolina system schools is going up every year. Some of the private schools in our state are well over $50,000 per year just for the privilege of attending. Without question, college is getting expensive. And so is the cost of not filing bankruptcy if you have student loans. While many loans start out as federal in nature, a large majority of them are bought by third-party lenders who do not look kindly on your inability to pay them. However, these groups are more than happy to grant you a deferral or forbearance in order to drag out the payment periods to 25 years or more. If you don't pay your loan, they can garnish your wages and even sue you. While bankruptcy can not get rid of student loans, it will get rid of your other unsecured debt, putting you in a better position to get back on track with your student loan repayment.
You could get sued
You might think that if you simply don't pay your creditors, they will eventually go away. Not true. Debt buyers, the lowest of all life forms, will eventually purchase the debt for pennies on the dollar. These aggressive hounds will not stop until they have pressured you to cough up a reduced settlement amount. If you still refuse to pay, they can sue you and obtain a judgment lien on your property. Depending on the laws of your state, the debt buyer can then attempt to sell your home, car or other belongings in a sheriff's auction. Bankruptcy will stop a lawsuit immediately, and stop the creditor from forcing a sale of your property.
If you are falling behind on your monthly payments, talk to an experienced bankruptcy attorney to discuss how bankruptcy can protect you and your family. In North Carolina, call the Law Offices of John T. Orcutt to set up your free initial consultation. +1-919-646-2654.