Is Bankruptcy Necessary when You're Uncollectible?

When a creditor gets a judgment against a debtor, the creditor can attempt to collect the money owed by doing things like garnishing wages, bank accounts or state tax refunds. However, there are some people who are uncollectible. They are unemployed and have no bank accounts or other assets. With uncollectible debtors, creditors only have the option of making written or verbal demands for money. If an uncollectible person doesn't pay the debt, there is nothing the creditor can do. However, some uncollectible people still prefer to file bankruptcy in order to have some peace of mind. Bankruptcy stops all collection action. That means no more ringing phones and harassing letters from aggressive creditors and collection agencies. For that reason alone, bankruptcy is an ideal option for some uncollectible debtors. However, uncollectible debtors don't need to file bankruptcy right away. Sometimes, it might be a better financial strategy to wait. Getting a free consultation with an experienced bankruptcy attorney will help uncollectible debtors decide whether bankruptcy is right for them.

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