Your paycheck is a common means for creditors to recover what they believe is owed to them. Frequently we speak with debtors in Minneapolis who are involved in multiple legal matters and are desperate for help. They have tried their best to work with creditors. They have disclosed their personal information and expenses in an effort to be forthcoming and show good faith.
Unfortunately, they’re not rewarded for this. Instead they get stuck with a hefty wage garnishment or bank lien. Unfortunately, many creditors truly have no desire to work with you once your account falls into default. This is because they are already paying a debt collection company to recover these debts for them. By acting fast and consulting with one of our experienced Minneapolis Bankruptcy Lawyers, you could avoid unexpected deductions from your bank accounts or paychecks.
Garnished wages are not the worst that can happen. Discovering that you no longer have full ownership of an asset is even more alarming than learning your paycheck or bank account has been impacted. It is not uncommon to secure debts with automobiles and recreational vehicles. If a creditor has a security interest in your property, you could your car repossessed or your home foreclosed. This can make the road to financial freedom even more stressful. Speaking with a Minnesota Bankruptcy Lawyer before this happens will save you the headache.
While many creditors understand the value of receiving small monthly payments from you, as opposed to having to go after you to get a payment, these small payments will still continue to hurt your credit rating. Even if your creditors are willing to work with you on a flexible repayment plan, they are often still required to report some, if not all, of your past due balance. The longer the account remains in default the more damage it does.
Bankruptcy does not look great on your credit report and there’s no sugarcoating that. However, we assure you that bankruptcy is far more appealing to lenders and creditors than an existing account which has remained in default and unresolved for an extended period of time. By filing bankruptcy before your debts become unmanageable you can avoid the negative impact that defaulted debts have on your credit rating.
Need help? We’ve got you covered! At Kain & Scott we’ve been specializing in Chapter 7 & 13 Consumer Bankruptcy since 1972. Our professional, kind and helpful Minneapolis Bankruptcy Lawyers will be able to evaluate the likelihood of any potential risks with your case and advise you how to protect your income, assets, and property. At Kain & Scott we don’t judge you, we help you get your life back! We’re not here to make things any more difficult than they already are. We will never hand you a mountain of documents or forms to fill out. In fact we will do them for you. Don’t continue to needlessly struggle with overwhelming debt and the problems that surround it. Our Minneapolis Bankruptcy Lawyers are eager to help. Contact us today!
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