Many people view bankruptcy as a last resort — after all other types of dealing with debt have failed. While no one would want to file bankruptcy unless they had to, it is a good option for many people. Other ways of dealing with debt — such as debt consolidation/negotiation or dipping into retirement savings — usually end up costing you much more in the end.
At BELL & DAVIS PLLC in Sequim, Washington, our attorneys provide trusted legal advice to individuals, families and small business owners throughout the Olympic Peninsula. No matter how you got into debt, call us at 800-266-8296 to discuss the best way out.
Why Bankruptcy Is A Better Option
Dipping into retirement savings is usually the worst way to solve a debt problem. Once you take money out of your 401(k) or IRA account, you have given up a part of your future. You will also face taxes and early withdrawal penalties that could lead to further financial problems down the road.
Many people are taken in by ads promising debt relief though services called "debt consolidation" or "debt renegotiation." What the advertisements fail to tell you is that you will end up paying thousands of dollars in fees before one penny of your payments goes to your creditors. Even if your creditors agree to accept less than you owe, you could end up with a hefty tax bill for any debt that is forgiven.
When you file bankruptcy, you get to keep your retirement savings and many other assets, including up to $125,000 in equity in your home. In addition, bankruptcy is the only form of debt relief that allows you to discharge up to 100 percent of debts such as medical bills, credit card debt and payday loans. It also puts an immediate stop to all attempts by creditors to collect debts, including:
- Harassing phone calls
Before you try other debt relief options, talk to our lawyers about bankruptcy. We file Chapter 7 and Chapter 13 bankruptcy for individuals. We also file Chapter 11 bankruptcy for businesses.
To talk to an experienced and approachable attorney about your debt problems, call 800-266-8296 or complete our contact form.