Too many bills? Follow These 3 Rules Until You Call Us
How many of you are living the formula: ostrich + sand, when facing your personal debt?
How many of you check the caller ID every time the phone rings, and let in continue to ring if it is a 1-800 number, or “unavailable”?
How many of you dread opening up your mailbox?
If these rituals sound familiar to you, we’re here to help. Doing nothing about overwhelming debt is not advised and only makes your financial problems worse. Follow these three rules if you find yourself struggling with debt until you gain the advice of a bankruptcy professional:
Rule 1- Don’t throw away your mail: Approaching the mailbox with dread, only to see a stack of mail from creditors, is not a wonderful thing. Your greatest ally in your personal war against debt, is time. The only way you can buy more time is to prioritize which bills need be addressed before you find yourself answering the door to a process server. Notice that I used the word “address” instead of “pay.”
Rule 2- Don’t pay bills according to who calls you the most: As a general rule, bills should be paid in the following order: 1) Food, 2) shelter, 3) utilities, 4) loans secured by vehicles, 5) child support/taxes, 6) loans secured by other property, 7) unsecured debt, including credit card debt and medical bills. There are times when child support and taxes take on a greater priority. The people who call you most are probably #7 on that list. They are calling you for a very good reason – to move themselves further up that list in your mind! The timing of paying student loans varies from case to case.
Rule 3 – Answer all lawsuits, and show up in court: Failing to answer lawsuits, or showing up in court, only shortens the amount of time you have in addressing the debt. You may have valid defenses which could eliminate the debt entirely. There are scores of companies that attempt to collect ‘zombie’ debt, that is, debt that has expired according to the statute of limitations. Don’t give them a free pass, especially if they intend to garnish your wages.
You need to know your options before you open your checkbook to pay the bills. Contact my Wausau bankruptcy office to set up a free consultation concerning your debts. We’ve helped many “ostriches” pull their head out of the sand, and breathe easier.
Bankruptcy is not for everyone, but it could work for you. The federal bankruptcy code is designed to afford honest debtors a chance at a fresh start in their finances.
Personal bankruptcy is the opposite of “doing nothing” about your bills. The faster you can regain financial balance, the better!
