Thinking of Filing Bankruptcy? Do Not Delay to Get Legal Advice

When your debts begin to get overwhelming, it is quite natural to cringe at the thought of bankruptcy.  None of us were raised to think bankruptcy is a good thing and there is an understandable reluctance to take that very important step.  I have yet to meet anyone who was happy to call my office.

Although it is normal to procrastinate in dealing with overwhelming debt, it is usually a very unwise course of action.  And in some cases it can have disastrous consequences. If bankruptcy has ever entered your mind, I urge you to consult an attorney at your earliest convenience. Most offer free consultations and there is no obligation to sign up.

Some of the benefits of consulting an attorney include:

Alleviating the Stress

By the time, you eventually consider calling an attorney it is likely the stress of the overwhelming debt has built to an unhealthy level.  This can be a tricky and scary time when you must know your rights.  Most people don't.  And your creditors mislead you, making you think you don’t have rights.  An attorney sets the record straight and lays out a strategy that will put your mind at ease, help stop the creditor harassment and keep lawsuits at bay. This all greatly reduces your stress level.

Stopping the Creditor Harassment

Once you tell collection agencies you have retained an attorney, by law, they cannot call you anymore.  For most people, this is a great relief. And this can happen well before you file.

Pre-Filing Planning

There are a host of things you can or cannot do before you file bankruptcy.  Most people understand you can’t max your credit cards the day before you file.  By the same token, there are a lot of other things that can fit into that category.  The sooner you learn what you can or cannot do, the more likely to avoid problems down the road.  An attorney can help you avoid these pitfalls.

Getting Into Chapter 7

A chapter 7, also known as a fresh start, enables you to discharge most, if not all, of your debt.  A chapter 13, on the other hand, requires you to make monthly payments from 36-60 months. Clearly, most would prefer a 7.  Whether or not you qualify depends on a number of factors and an attorney, through some strategic planning can sometimes qualify you for a 7. I once had a client who, had they waited one more day to file, would not have qualified for a Chapter 7. If you think you are a 13 call an attorney right away to give you your best chance of filing a 7.

Preventing Wage Garnishment

Waiting too long to deal with bankruptcy can mean you can get hit with a garnishment.  Creditors can clear all of your bank account and take 25% of your take home pay. If you consult with an attorney before these terrible things happen, they usually can prevent them from happening at all and at the least delay them for months on end.

Reasonable Retainers

All of these benefits can happen long before you file.  They typically can be provided once the retainer is paid.  The retainer fee is a different fee than the overall legal fee. The difference is critical to understand.  Retainers represent only a fraction of the overall fee and mine is usually between $100 and $200.   And for that small fee you will enjoy all of the above benefits and will be on your way to a fresh start.

So, if you are considering bankruptcy you owe to yourself to talk to an attorney as soon as possible.  It's no fun to confront these problems but it can make the process go smoother and can give you peace of mind. Almost everyone leaves my office feeling a bit better than when they walked in.

Mr. Taggart is a 1997 graduate of The Ohio State University and is one of the only bankruptcy attorneys in Colorado with an Masters in Business Administration with a focus in Finance.  He earned his MBA from The Ohio State University in 1997 and is a cum laude with B.A. in economics from Kenyon College.  Mr. Taggart focuses on bankruptcy law and has helped hundreds of people in Chapter 7 and 13s across the state.

For a free consultation call 303-753-9701 or email him at coloradobk@hotmail.com.