When you have many bills to pay but not enough money to pay them all, it can be paralyzing. Should you pay your housing bill first? Or pay as many smaller bills as possible? This is a very difficult question to answer but at The Law Offices of Paul Y. Lee we have some ideas that can help you get started. If you decide to consider your bankruptcy options, contact us at 951-755-1000.
It is Not Necessarily Best to Give the Squeaky Wheel the Oil
It may seem that you should pay whoever is calling you the most or acting the most aggressively. This is false. The creditor that is most important is the one that does not need to call. When a creditor is calling it is because they know they have few other options to get their money from you. They want you to be so uncomfortable that you will do anything to get them off the phone.
The more important creditors do not bother. For example, if you owe tax money and do not pay, the authorities will simply garnish your accounts. If you owe money on your mortgage, you can go into foreclosure. A car lender can repossess your car. Do not pay based on who makes the most noise or you could find yourself in more trouble than is necessary.
You Can Get Your Creditors to Leave You Alone
There are steps you can take to require creditors to leave you alone legally. Does this mean they will always follow these laws? No – but you can do your part. In fact, you have a right by federal law to get debt collectors to stop calling. You can write a do-not-contact letter, keep your own copy, and send it with a return receipt.
If you decide to file for bankruptcy, your debtors are required to stop contacting you once they have been informed of the filing. At that point, they must wait to deal with your debts in the legal bankruptcy court.
Determining Whom to Pay First
First, pay your living expenses. If you don’t pay your mortgage or rent, you may not have somewhere to live. If you do not pay the car payment, you may not be able to get to and from work. Write down all your expenses and then determine which ones are your priority. Be honest. Stick to your plan. Then contact an attorney who can help.
At The Law Offices of Paul Y. Lee we can discuss bankruptcy options with you. If there was a temporary issue and you believe it will turn around, then filing bankruptcy may not be the right option. However, if you have more bills than you can pay then something has to give. Bankruptcy can take off the pressure and help give you a fresh start. Contact The Law Offices of Paul Y. Lee at 951-755-1000 to find out how we can help.
