As a bankruptcy lawyer, for almost 20 years now, I can tell when people do need to file and when they may not need to file for bankruptcy. Communicating the need to file bankruptcy is however, a challenge. This is fundamentally because people do not want to have to file for bankruptcy. Because of that, people often hide their heads in the sand and delay.
Unfortunately, delay in filing the case may complicate things and end up costing you more in the long run. Firstly, if you are going to be unable to catch up on your credit cards because of the interest and are going to need to file eventually anyway, any money you pay to the credit card companies are wasted funds you could have saved for your new life free of debt.
Secondly, delay in filing bankruptcy can lead to judgements and garnishments and attachments of bank account funds. This is of course very stressful and disruptive to your level of peace and hopefulness, and that effects everything, even your health. Moreover, since a judgement in Colorado becomes a lien against all of your property, having a judgment can make your bankruptcy case in Colorado a bit more complex and expensive. Your lawyer can usually remove the lien by filing a motion to avoid a judgement lien in the Colorado Bankruptcy Court.
Third, making an early decision to file bankruptcy can help you address payments to things that will have to be paid anyway. This is the case with student loans and most taxes. Of all creditors, tax authorities are the most dangerous, if a bankruptcy is going to be necessary anyway, it makes sense to at least have a plan to deal with the taxes, rather than to be running to county court to pay $50 on a credit card that is never going to be paid off in any event.
I hope this article helps someone out there make an early decision to file, in a circumstance where filing makes sense of course. I offer a free consultation for potential bankruptcy clients and as I say sometimes bankruptcy isn’t the answer and I’ll tell you as much. It’s private and free, and I can guarantee you I can give you one tip, about bankruptcy and about your consumer finances that will save you a ton of money and provide a safety net for the rest of your life. This is something most bankruptcy lawyers know, but don’t take the time to tell people.
Lastly, meeting with a quality bankrutpcy lawyer can help dispell incorrect beliefs you may have about bankruptcy, which many people learn from old and now incorrect information on the internet, or from well meaning friends and relatives who do not know the law. I hope this not finds everyone well, thanks for taking the time to read it.
I can be reached at (303) 501- 4028 direct or (303) 670-4242 office.