On behalf of Musselwhite, Meinhart & Staples posted in bankruptcy on Tuesday, April 10, 2018.
When the mortgage, car payment, medical bills and other living expenses leave a person with too much debt at the end of the month this can lead to creditors calling to collect. This is where bankruptcy may be able to help numerous Kentucky residents.
When a person can no longer pay his or her bills, there may not be any immediate consequences. Creditors usually give wait two-three months before they really take action — such as calling to collect or reporting the lack of payments, which would lower one’s credit score.
Why not just walk away, then? Won’t creditors stop trying to collect eventually? Not necessarily. Most are more likely to pass the debt to collection agencies or sell to the debt buyers who will gladly hound a person to pay. If that proves ineffective, they may sue in order to collect.
Bankruptcy, if approved, really is the only way to walk away from debt or at least achieve an affordable repayment schedule — depending on the type of bankruptcy utilized. Trying to just walk away by not making payment only does more harm than good in the long run. An experienced attorney can assist Kentucky residents who have found themselves facing significant financial hardship in taking the right steps to improve their situations.
Source: U.S. News & World Report, “What Happens if You Don’t Pay a Debt?“, Geoff Williams, April 3, 2018