Consequences for Considering Bankruptcy
Smith, Montgomery & Associates, P.C., comprised of lawyers and highly-trained staff and one of the leading law firms in Southwest Missouri, is a full service law firm with over 65 years of combined experience.
Due to their inability to pay debts, some people find themselves being sued by credit card companies, medical providers or other entities. If you are sued and a judgment is obtained against you, a garnishment can be issued against your wages, bank accounts or other assets. If your wages are garnished, 25% of your income can be taken from your paycheck to be paid toward the judgment. If your bank account is garnished, 100% of the funds in the account will be taken. Both these scenarios can create a serious financial hardship. Ideally, you should seek legal advice before you are garnished. Having one of our Debt Planning Lawyers file bankruptcy for you will eliminate garnishments on your wages, bank accounts or other assets.
Due to various economic challenges caused by unemployment, illness, or loss of income through divorce, many people fall behind on their mortgage payments and are removed from their homes by their mortgage lender through the foreclosure process. Although some mortgage companies offer loan modification programs, very few mortgage loans are actually modified. Having one of our Debt Planning Lawyers file bankruptcy for you can stop a foreclosure, enable you to bring your mortgage payments current and allow you to keep your home.
If you fail to pay a debt, you will most likely begin receiving collection letters from the creditor or a collection agency that they have hired to collect the debt. If you continue to fail to pay the debt, the creditor or the collection agency will file a lawsuit against you in Circuit Court. You will have to appear before the Judge, and in most instances that Judge will issue a judgment against you for the amount owed plus interest on the amount owed, court costs and attorney fees for the other party. Once a judgment is entered, your wages, bank accounts and other assets can be garnished. In some instances, the creditor will place what is called a "judgment lien" on your property, meaning you cannot sell it until the judgment is paid. If one of the Debt Planning Lawyers from Smith, Montgomery & Associates files bankruptcy for you, garnishments will be stopped and judgment liens can be voided by the bankruptcy court.
Let one of the experienced and caring Debt Planning Lawyers at Smith, Montgomery & Associates will help you make informed decisions about all of the debt planning options available to you.
