For many of us, the term "financial hardship" is just the politically correct way to say "I'm broke!" No one plans to be broke, no one plans to stay broke. When things get that difficult the only planning that should be done is working on those things that are going to improve the situation. When a person has reached a point where considering bankruptcy is off the table because it's simply unaffordable, you might hear them say something like, "if I could afford to pay for bankruptcy, I could probably afford to pay my bills." This statement may sound sensible at first glance, but it is something that needs realistic examination.
When the phone is constantly ringing with calls from collection agencies, collection letters are stacking up on the kitchen counter, and you are doing your best to make ends meet each week, it's not likely that filing bankruptcy is something you might consider at this point. You know that being broke is temporary and things will improve. How you may have arrived at this particular juncture is of no importance, taking steps to remedy the situation is all that matters. Filing bankruptcy seems illogical for many reasons, not the least of which are that you can't afford it, and you have no money available that the collection agencies can attach.
The fact that you have no funds that can be frozen, assets that can be attached, or wages that can be garnished may make the efforts of collection agents seem feudal. However, those factors will not change the fact that money is still owed to creditors, late fees and interest rates will still compile, and your credit score will continue it's downward spiral. Why then, would I recommend that you make every effort to seek the services of a bankruptcy attorney when you can least afford it?
Although the calls from the collection agents have slowed, perhaps stopped, and fewer collection letters have been arriving in the mail, don't think for a moment that the collectors have forgotten or given up. They are watching and waiting for you situation to improve and just as you can be certain the sun will rise in the East and set in the West, you can be certain that the collectors will be at your doorstep the moment things begin to improve.
Bankruptcy laws were written to protect consumers who are struggling with debt. Once you have filed for protection under Chapter 7 of the bankruptcy code, collectors are prohibited from contacting you or attempting to collect debts. This is done, in part, to give consumers the ability to start rebuilding their financial life again. If you find that you are beginning to "get out from under" and you do not have this kind of protection in place, the collectors will be doing all they can to get as much as they can, as fast as they can. They have no concern about the well being of you or your family.
Meeting with a bankruptcy attorney, even though you can't afford it, is perhaps the wisest move you can make. However, you should approach the attorney with honestly and clearly express your circumstance. You will most likely be pleasantly surprised by how the majority of attorneys will respond. However, I suggest that you discuss your situation with an attorney over the phone rather than waste your time with a bankruptcy attorney that will not work with you.
Bankruptcy attorneys understand that most clients seeking bankruptcy are not going to walk into their office with pockets full of cash. However, they generally are used to working out payment arrangements with clients. Prior to filing bankruptcy, many attorneys can and often will act on your behalf when dealing with creditors. It's important that during this time you begin to lay the foundation for you bankruptcy filing. There's something to be said about the old axiom, "be prepared." Taking these steps in advance will go a long way in allowing you to manage your finances once things begin to improve, and provide considerable stress relief in the mean time.
If this is the situation that you are currently in, call a few bankruptcy attorneys right away. Debt is like a toothache, it won't get better on its own.
David Miller is a freelance writer and marketing consultant. He has written extensively about bankruptcy, debt settlement, debt consolidation, credit and credit cards, collection agency abuse, consumer law, credit card defense, FDCPA guidelines and complaints, loan modification scams, and foreclosure.
He contributes regularly to financial and real estate blogs.
He currently edits several websites and is a contributing author to many of them including http://lawfirmslongisland.com/
His articles about foreclosure, debt discharge, student loan debt and many other topics in the area of bankruptcy, credit and can be found at http://lawfirmslongisland.com/ along with links to other resources which he has been a contributing author.
