Bayonne, NJ Bankruptcy Law Firms & Lawyers

You describe the traditional scenario that leads to a bankruptcy filing. The next step for the bill collectors is to file lawsuits to get judgments, which they can then enforce by levying your bank accounts or garnishing your wages. You have three choices: pay off what you owe; enter into an agreement with the bill collector under its terms; or file for bankruptcy relief. Now, some places offer another option, "debt consolidation" or "debt settlement", but I have found that you must have a substantial steady income to make the large monthly payments the debt consolidators require plus the fees the debt consolidators charge; otherwise, you end up filing for bankruptcy relief anyway because your creditors either do not agree to be bound by the consolidation contract or the agency skips a payment (if it ever actually even starts making the payments) and the creditors seek payment through a lawsuit, which the debt consolidators usually do not respond to because they are not lawyers or refer you to hand-selected lawyers who may overcharge you for a bankruptcy filing, and may not be actual bankruptcy experts. Defending the lawsuit is not likely at this stage because it costs a multiple of what a bankruptcy filing usually costs and, if you do owe the funds, you will lose anyway as the Court only has power to find liability, not to force them to accept payments in any particular manner the collectors do not want. So, the bottom line seems to be that you either pay them the amount they want or explore whether a bankruptcy filing would give you the relief you seek before you take another step.

You cannot add debts that were incurred after you filed your bankruptcy. If the debt is so large that you cannot pay it, you should speak to an attorney about whether you can dismiss and refile your bankruptcy. But, generally that is not a very good idea.