Is Doing Nothing Really a Logical Bankruptcy Alternative?
As surprising as it may seem, for many people with a huge debt load, doing nothing might actually be their best bankruptcy alternative. Here's why:
Most people file for personal bankruptcy to protect themselves from their creditors. That's why it's called bankruptcy protection. You need protection from your creditors to prevent them from garnisheeing your wages, or seizing your assets.
But what it you have no wages or assets? Perhaps you are currently unemployed, or you are retired and getting a pension. If you don't have any wages, you don't have any wages to garnishee! You therefore don't need to go bankrupt to get protection from your creditors, because they can't garnishee your wages. You are what is called judgement proof.
If you go bankrupt you will have fees to pay and other negative consequences. For some people it may make sense to do nothing. If you don't plan to get credit in the future, and don't plan to own any property, doing nothing may be the correct answer.
Obviously doing nothing is not the correct option for everyone, but it is always the first bankruptcy alternative to consider.
Posted by Bankruptcy Alternatives Blog
@ 6:42 AM
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