Hey, I Finally Got a Job

Posted by Kevin on November 28, 2014 under Bankruptcy Blog | Be the First to Comment

You were downsized or your company went out of business, or your department was outsourced to India.  You lost your job and collected for as long as you could.  But what you collected in unemployment was not enough to pay all your bills, so you got sued, and some creditors got judgments against you.

While you were unemployed, it really did not make a difference that a few doctors, AMEX and Discover got judgments against you.  They could not levy on your unemployment benefits.  But, now the economy has gotten better and you just got an offer in your field at about 90% of what you were earning when things went sideways.

Now is the time for you to start thinking about how you are going to deal with those judgments (and other debts that have not been reduced to judgment).  With money in your pocket and a few new credit cards, your activity on the credit reporting agencies will increase.  Creditors will put 2 + 2 together and figure you have a job.  Then, the garnishments will start coming in.  Great way to impress a new employer.

Bankruptcy may be the answer.  Debt consolidation through a reputable credit counseling company may also keep the wolves away.  You owe it to yourself and family to look into these options.  Be pro-active.

Final word to the wise.  It is holiday season.  People are beating each other up at Macy’s all over the US today.  Maybe you are thinking that you can have one last fling and then take care of business after the New Year (if any of your credit cards still work).  Bad idea.  Why?  Because cash advances or purchase of luxury items over certain amounts within 70 to 90 days of filing can preclude a discharge of those debts.  In addition, it will make any bankruptcy more expensive.  So, play it straight.

Now is the time to speak with an experienced bankruptcy attorney.