“Dear Steve,
Due to taking a cut in pay and not getting any raises for 3 years I started using my credit cards for everyday living.
Now, 2 years later I’ve got over $25k in credit card debts and I have no way to pay even the minimum amount each month. I stopped paying my credit cards (about 10 of them) about 4 to 5 months ago so I could continue to make my house, car and utility payments.
I live from week to week, and now I’ve started getting calls from collection agencies.
I live in Texas and I’ve found out that the creditor’s can not touch my home or garnish my wages. But I’m worried about my bank acct., I have my paychecks automatically deposited.
On payday there is about $1,500.00 deposited and that same day 1/2 my house payment is taken out so after that there is never more than $500.00 in my checking and savings. I’m a single woman and my kids are grown and not living at home.
I have no equitly in my house and I do have a car loan that I keep current on those payments.
I have a 401K with about $75,000.00 in it.
1) I read about Asset Guard and Validation and my question is this.
I can’t afford the cost of Asset Guard, are there any other ways I can protect my bank accounts (I only have checking and savings)?
OR
2) should I close out my bank accounts and just send money orders to pay my bills?
3) I’ve also read about proxy ownership to protect my assets, do you think that would be an option for me?
4) Can the collection agencies take my household items, furniture, kitchen items, lawn equipment, etc.? I have no jewery or anything that is worth much, but it’s all I have.
Patsy”
Dear Patsy,
You don’t need to fool around with Asset Guard or debt validation. You need a swift, legally binding and immediate solution to your situation. Patsy, if there ever was a case where someone needed to seek protection from their creditors under bankruptcy, it sounds like your situation.
Bankruptcy will protect your 401(k) account and stop the creditors cold in their tracks. Any other solution is going to be hopeful, a “trick”, or something not guaranteed.
Stop messing around and head straight for a bankruptcy attorney as soon as possible. Even if you’ve never considered bankruptcy, you OWE IT TO YOURSELF to talk to a bankruptcy attorney ASAP and find out what bankruptcy would really mean for you in your situation.
You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact
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