Saturday, August 6, 2011

Top 10 Reasons To File Bankruptcy – #6

Threatened with a law suit, or a law suit pending against you.  As people start becoming late on paying their bills, and become overwhelmed with the idea that they will not be able to make all their payments timely, they usually find this becomes more than just a simple financial setback. It becomes emotionally draining, causing a great deal of stress. And then, as if things weren't already bad enough, creditors and collection companies start calling. Some can be nice, but some try to use intimidation to get you to send them some money. If you are behind on paying bills, then you know what I am talking about. This stress can create havoc in ones life, lead to depression and cause or contribute to other physical problems.

As part of their intimidation tactics, sometimes they either mention sending the matter to their attorney, and sometimes they just flat out say they are going to sue you. This alone is usually enough to get one to think of various alternatives to providing debt relief. If this doesn't create enough intimidation, then receiving of the law suit usually is. Then, of course, there is the small percentage of people that wait until their bank accounts and wages are being garnished.

Some people turn to organizations advertising debt consolidation before contacting an attorney, which usually, according to my clients, is a big mistake. The Federal Trade Commission has also commented on these organizations. You can see some of their comments by going to and scrolling down to “Debt Settlement Programs”.

There are also companies, or organizations, that advertise credit repair. Unfortunately, depending on what the company is asking you to do, this can lead to some very problematic consequences. Again, the Federal Trade Commission has published a paper about companies offering credit repair. It can be found at If you have been the victim of one of these schemes, believe me, you are not alone.

Fortunately, most people simply call for a free bankruptcy consultation, as they know it could be a big mistake hooking up with debt consolidators or credit repair businesses. My consultation includes a review of various alternatives, including bankruptcy.

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