Just got a Job, Think about Bankruptcy

Posted by Kevin on January 16, 2012 under Bankruptcy Blog | Be the First to Comment

Now, that my seem like a harsh title.  You may have spent an extended period on unemployment because of the prolonged economic downturn.  While you were on unemployment, you used up all your savings and went into debt.  You sent out hundreds of resumes and spent hours on the net looking for a job- even if it was for less than your prior jobs.  Things are now looking up.  You are back to work.  But, now is the time to be wary.

In the past, companies wrote off debts.  Now, they sell them to hedge funds or other collection companies for pennies on the dollar.  And what do those bottom dwellers do?  They harass you and then sue you.  Why?  Well, if you buy a debt for 2 cents on the dollar and settle for 10 cents on the dollar, you have made a 500% profit before expenses.  That is the game that is being played today.

Collection practice is not hard.  You do not need a Harvard law grad to do it.  It is quick and relatively inexpensive to get a judgment.  And if the judgment debtor has a job, you garnish his or her wages.  Now, instead of 10 cents on the dollar, the creditor gets 100 cents on the dollar plus interest.  It takes time, but the creditor gets a check every time you get a check.

I am reading financial publications that say that the party of significant financial expansion is over for the foreseeable future.  Probably true.  But the party is not over, until you clean up the mess.  If you truly want to move on, you may want to consider what you are going to do about the debt that you accumulated over the last 10 years.  I am not saying that everyone should file bankruptcy.  Credit counseling or debt consolidation may work for many of you.  However, bankruptcy is certainly an option that should be considered.

Consider a free consultation.