Over the years, most Americans have gotten lazy and complacent even when it comes to financial matters. With the recent decline in the economy, people who should be proactive on financial matters have decided to bury their head in the sand hoping it will turn around. It’s been three years now and things aren’t getting any better. Gas prices are close to five dollars and the average American now has close to $16,000 in credit card debt. As prices continue to rise on our everyday necessities people need to wake up and smell the coffee. There are many Americans that are buried in debt and barely hanging on by kicking the can down the road month to month on their credit card debt. They qualify to file for bankruptcy, yet they don’t want to lose their precious credit cards. All it takes for the wheels fall off for one of these individuals is something as minor as a car repair that they can’t afford to pay. With not enough available credit and the choice needs to be made of whether to pay their credit card bill and keep the account open or fix their car. This is the stage where people start taking out payday loans and quickly spiral to the point of needing to file bankruptcy.
Creditors these days have become very aggressive and don’t wait around for someone to come up with a payment plan. They probably know their customers finances better than the customer does them self. They know that if they’re owed $5000 and this person is going south, they won’t wait around to file a lawsuit to get a wage garnishment to make sure they are on the top of the list to be paid. If someone would just not procrastinate and consider filing bankruptcy all this craziness could stop. Don’t wait until you’re being sued call a bankruptcy attorney and beat the creditor to the punch. Filing bankruptcy will stop any legal action against the debtor once it is filed. Once the bankruptcy petition is filed with the court, the automatic stay is put in place stopping all collection activity from the creditors. The automatic stay also stops all legal actions like, foreclosure, lawsuits, judgments and wage garnishments. Once the debtor hires a bankruptcy attorney to represent them, they will no longer have to deal with the harassment from overbearing creditors.