Lawrence Masssachusetts Bankruptcy Lawyer

Have you been sued by your credit card? I was in Lawrence district court the other day and couldn’t believe the number of Lawrence residents being sued by their creditors. Most of the debtors had lost a job or ran into health problems or simply could not make ends meet. The debts varied greatly from as little as a few thousand dollars to well over fifty thousand. Without exception the credit card companies had received a judgment against the debtors and because the debtors had never answered the complaints the amounts owed were now double what was spent for purchases by the debtor. The reason for this was because now there were attorneys fee, costs and interest tacked onto the tab.

The collections attorneys work on contingent basis, which means they get one third of whatever they collect from the debtors. I have dealt with these attorneys, some who have been reasonable but many have become cold hearted and see the debt as an income stream. They don’t care that you cannot put food on your table or that you are robbing Peter to pay Paul they want their one third of the take so they hall you into court on what’s called a supplementary process hearing. In this hearing they have the right to ask you questions about your ability to pay. So that means all of your finances and expenses are on the table. If that sounds like an invasion of your privacy you are right. Think there is no debtor’s prison? You might be wrong. If you don’t show up for the hearing they can issue an arrest warrant for you. Once you arrive at court they will announce all of the cases. Usually they hire some newby attorney to go to court for them and give them like fifty cases. Most of the time you will have to go out into the hall and fill out a financial statement and negotiate a monthly payment. If you thought the credit card interest was bad, don’t forget that the judgment has interest of 12% a year. So even if you pay $150.00 a month you are not really going to make a dent into what you owe.

Did you know chapter 7 bankruptcy can make all of this go away. Chapter 7 bankruptcy can wipe away these types of judgments. If you do get a supplementary process hearing notice you could show up and tell them you are going to file chapter 7 and give them your attorneys number and get out of there. The collections lawyers really have no remedy at that point because the debt you owe is going to be wiped away.

But doesn’t chapter 7 hurt your credit? How do you think your credit looks right now that you haven’t paid your credit card bill and have a judgment against you? That’s right not that good. Look at it this way, let’s say you keep your debt and continue trying to pay it. In seven years you may still owe money on that debt and your credit might have improved or might have gotten worse. If you keep the debt you credit will have a hard time improving because you will still have a high debt to asset level.

In the alternative if you file for chapter 7 bankruptcy all of your debts will be wiped away. So over time your credit can bounce back because your debts to asset level has improved. You can also spend the money you would have used on the paying the credit card company back on things like rent, or food for your family, or clothing for your children or who knows something fun like an occasional night out on the town.

If you are a Massachusetts resident who has be summoned into Lawrence district court by your credit card company please give me a call to discuss your case. Bankruptcy might be the right answer for you. I offer very affordable bankruptcy solutions. Please don’t hesitate to call me even if you don’t want to file bankruptcy but just want some advice on what to expect at court. It’s totally free. I do this because I am a consumer advocate and like helping people. The banks got bailed out and you deserve a second chance and a fresh start as well.

Have you been sued by your credit card company and live in