But Do I Really Need to File?

This is a common question we are frequently asked. Many people often seem content to simply let their bills pile up; if they ignore them perhaps they will go away. This is a move fraught with consequences.

So what will happen if I don’t do anything? What happens if I don’t pay my bills and I don’t file for bankruptcy? If you are employed your wages may be garnished. This means that your creditors can actually have your employer deduct money straight from your paycheck, much the same way taxes are deducted, and paid directly to them until the debt is paid off.  This means when you are already struggling under the weight of so many bills you will see even less money in your pocket at the end of each pay period. One of the many advantages to filing for bankruptcy, is that the bankruptcy process will halt garnishments.

Well what if I am not employed? What can the creditors do if I have no money to pay them? In the short term, perhaps not a whole lot. However, if a creditor, credit card companies in particular, take you to court and obtain a judgment against you, they can seize future assets which you may come into. This can come in the form of future wages, inheritance, insurance payouts, even money you may get as a result of a lawsuit if you suffer a personal injury.

The bottom line is that creditors have many means at their disposal of finding and taking your money, either now or in the future. Filing for bankruptcy protects your assets today while at the same time extinguishing most, if not all, of your liabilities.