Don’t put you head in the sand- your creditors will not stop hounding you until you pay them or file bankruptcy!

Many of my clients have debts that are very old.  Collection agents have long since been brought in and my clients are being called on the phone sometimes 20 times a day to pay these debts.  It’s especially vexing if you have a number of these collectors each trying to call you numerous times a day.  Most people in this position have long since stopped answering the phone.

Creditor harassment can really affect your life.  It makes you constantly uptight, nervous and upset.   You know in the back of your mind that something must be done about these debts.  Many people can get seriously depressed about their debt.  This can lead to all sorts of bad consequences.  If this is you or someone you know then read this.

The point of all this is why live this way when it is totally unnecessary?  There is an alternative to this and it is filing bankruptcy.  By the time these collectors are calling you this often on this many debts its clear that you cannot pay them.  Its time to get your head out of the sand and admit the reality that is staring you in the face.

These collectors will not stop pursuing you and they will call, fax, e-mail, and send you letters continuously until something is done about the debt.  If they can’t get ahold of you for an extended period then they will usually file a lawsuit against you in state court.  This filing goes on your credit report and should be avoided if possible.

Once these creditors get a judgment against you in state court they will use all available attempts to collect on that judgment like garnishing your wages, seizing you bank accounts, putting a lien on your real estate, or getting you into court for a debtor’s exam.  If you miss the debtor’s exam they can issue a warrant for your arrest.

I know this because one of my clients got one of these debtor’s exam notices recently.  In his case we were able to file his bankruptcy the night before he was due in court and that stopped the whole collection process.   The point is though that all of these things are bad for you and they can only cause you trouble or loss of money, probably both.

The good news is that filing bankruptcy stops all of this whether you have been sued or not.  Please stop trying to avoid the reality of the debts.  Don’t be the ostrich!  Bankruptcy, debt relief, happiness and freedom are only a phone call away!

I am a bankruptcy attorney practicing in San Diego.  For further help please visit my website at


Don’t spend down any of your retirement before you file your bankruptcy.

I should add, unless it’s over $1 million.  That’s right.  You can save up to $1 million in a government approved retirement fund like a 401k  or IRA and it will be exempt in the bankruptcy.  That means you can get rid of your debts and keep the retirement fund to spend as you wish.

The government did this in the 2005 changes to the bankruptcy laws because they wanted people to be able to keep their retirements so they would not become destitute after a bankruptcy and then become wards of the state.  It is a great rule for debtors because this is obviously a lot of money that creditors can’t touch in a bankruptcy and its money that you can keep.

Yes, you can file bankruptcy, discharge your debts, and keep your retirement money intact.  It’s a pretty good deal and one of the few good things that came out 2005 revision of the bankruptcy laws.  That law was written by the credit card companies themselves through their lobbyists and it was designed by these companies to reduce the amount of money they were losing in the bankruptcies of their customers.

We are lucky therefore that they didn’t just change the law to allow them to get access to these accounts.  They did not though so for now you can keep your retirement funds in a bankruptcy.

File bankruptcy soon (if you need to) before they send their lobbyists in the alligator shoes to stroll the halls of Congress again to take back your right to keep your retirement in bankruptcy!

I am a bankruptcy lawyer practicing in San Diego.  For further help please visit my website at