Managing debt is a part of many people’s lives. When that debt gets out of control and starts to become unmanageable, it may be enticing to try to ignore the issue, blindly hoping it will go away or resolve itself. The fact is, however, that debt does not just disappear. And ignoring it or pretending it doesn’t exist can come back to haunt you in a big way.
What Happens When Debts Are Ignored
The reason that ignoring debt issues can be so problematic is that it can give creditors or debt collectors the opportunity to move forward with more aggressive actions, which may include:
- Repossessions – Any item used as collateral for a loan, such as vehicles, jewelry or other valuables, can be repossessed by creditors when defaults happen. Additionally, consumers should be aware that a court order may not be needed for creditors to proceed with repossessions, making this an attractive option for some debt collectors who want to recoup as much as possible with minimal costs to themselves.
- Foreclosures – Banks and other lenders will typically proceed with foreclosures when consumers fall behind on their mortgage payments.
- Wage garnishments – Creditors may also petition the court to get consumers’ wages garnished if or when they default on their debt payments. Although a court order is needed for a wage garnishment, once these garnishments take effect, it can be difficult to reverse or halt them.
- Lawsuits – Another option creditors have when debt defaults happen is to sue consumers.
Filing for Bankruptcy Can Stop These Creditor Actions
Although the impacts of ignoring debt problems can be scary and costly, the good news is that consumers who are buried in debt DO have options for getting out of debt – and for doing so while halting creditors’ actions against them.
In fact, filing for Colorado bankruptcy – including Chapter 7 or Chapter 13 bankruptcy – WILL stop creditors from proceeding with repossessions, garnishments, foreclosures and/or lawsuits. That’s because, with a bankruptcy petition, an automatic stay goes into effect, providing consumers with protections to allow them to get their finances in order without the threat of creditors’ punitive actions.
Need More Info about Colorado Bankruptcy? Contact a Denver Bankruptcy Attorney at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy attorney at Garcia & Gonzales, P.C. to provide you with experienced help and honest answers about your best debt relief options. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.