Obama's Economy

Should I file for bankruptcy?

I got a letter in the mail yesterday that all my old medical debt of 4,000 has to be paid now or else there will be a judgement against me and my wages can be garnished. (i called them and they want very large monthly payments if i pay this off month to month) I also owe about 3,000 in other debt. I dont make very much money and all that I make goes to rent and student loan payment and utilities etc. Should I file for bankruptcy? I’m being told that I should by attorney’s so that I can stop the judgment against me. If I was to pay back this debt now I would have literally no money to buy anything but groceries for about two years. All this debt is accumulated over 10 years and it would be nice to start fresh. what should I do?

Ryan…the only way to stop a garnishment of your wages, is either paying off the debt, or filing a bankruptcy. If they garnish your wages, they can and will garnish your paycheck up to the percent allowed or they can and will garnish a bank account up to 100%, if you’re in the U.S. If you have consulted with more than one attorney, it’s your choice on whether or not you file. If you are set to go to court, you should appear in court, though they will get a judgement against you, you can set up payment arrrangements with the judge. If you don’t appear at the court date, that’s when they seek the garnishment. No creditor can get a judgement against you until they take you to court first. Now….you also need to check your statue of limitation for the debts in your state….. www.bcsalliance.com It’s an excellent site for debts, garnishment and collection information. If the debt is over the statue of limitations the debt is now time barred and this creditor is blowing smoke up your arz and is what they call a scavenger….they buy old debt in hopes someone will be stupid enough to pay it after the statue of limitation is out. If they serve you court paperwork and you know for sure the debt is older than the statue of limitations, you go to court and tell the judge the debt is time barred per the statue of limitations in your state, and the judge should dismiss it right there. Good Luck!!