Know Your Options Early When Facing Debt Problems

 Facing difficult financial times can be a frightening thing for a lot of people. When bill collectors are hounding you, at some point, you realize that something must be done but you just don’t know where to begin or where to go for help.
Often, options can also be confusing unless you get the right information that you need to make the right decision. Should I consider filing bankruptcy or is that the worst mistake I can make under the circumstances? What can creditors do to me if I continue to ignore my debt problems?
If a lawsuit, wage garnishment, repossession or foreclosure is imminent, you need to take action immediately, so you can protect yourself and your property. If filing bankruptcy is your best option, consult with an experienced bankruptcy attorney who can explain to you how this process works so you can get immediate debt relief.
Unfortunately, most people feel a certain shame or stigma about petitioning for bankruptcy when, in reality, it may be the best thing they can do to protect themselves from creditor actions.
If you have been sued by a creditor and you don’t file an answer to the complaint, the creditor can get a default judgment against you. The judgment obtained will then allow the creditor to further collect the debt by seizing your bank accounts or garnishing your wages. If you file bankruptcy, of course, at any point during the collection process, the legal proceedings against you are immediately stopped.
For those of you who are in foreclosure and are currently trying to work out a solution with your lender with a forbearance agreement, a repayment plan or a loan modification, don’t make the mistake of not having an alternative plan just in case your lender says “no”. I see a lot of people wait for months to get a response from their lender after submitting their loan modification application, only to be told the last minute that their lender has declined their request and that the lender will now resume foreclosure proceedings.
It is better for you to find out in advance what other options may be available to you in case you are denied. If you wait to do this after you have been denied, you may find that you either have very limited choices or none at all.
Ray J. Bulaon is a debt and tax resolution attorney in Valencia who has helped more than 5,000 clients. For a free confidential consultation, call his Valencia office at 866-477-7772.