What If I Do Nothing About My Debts?

When you face an overwhelming amount of debt, it may seem tempting to ignore the problem. While doing nothing may not cost you any money now, it can lead to severe financial consequences later. Bankruptcy provides an affordable way to get rid of debt without creating problems down the road.

At Charles J. Schneider, P.C., our lawyers offer a free initial consultation to discuss your debt problems. Our law office is conveniently located in Livonia, Michigan, and we serve clients throughout the Detroit metropolitan area.

Avoid The Consequences Of Doing Nothing

If you don't pay a debt, eventually you will get sued by the creditor. With a legal judgment in hand, the creditor can then obtain money from you in a number of different ways. For example, the creditor could:

  • Garnish your wages
  • Garnish your bank account
  • Take your car (even if your car has a lien against it and you are still making payments)
  • Take any other property that is not protected by Michigan exemption laws

If you fail to show up in court when you are sued by the creditor, the court could issue a warrant for your arrest. Later, if you are stopped for a traffic violation, you could be taken into custody and your bond to get out of jail could be set at the amount you owe the creditor.

When you consider the consequences, bankruptcy is an inexpensive way to discharge debts and protect you from creditors.

What Happens If I Walk Away From A Foreclosed Home?

Walking away from your mortgage can leave you with a deficiency judgment that can affect your financial life for years.

Even if the lender cancels the mortgage debt after a foreclosure proceeding, you could end up with a tax bill of thousands of dollars from the Internal Revenue Service. The IRS views canceled debt as income. You can avoid tax consequences and deficiency judgments if you discharge mortgage debt through bankruptcy.

Contact A Livonia Bankruptcy Attorney

To learn more about your bankruptcy options, call 734-237-1523 or fill out the contact form on this website. We offer evening and weekend appointments.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.