How Bankruptcy Provides a Positive Collections Defense in Knoxville

by | Jul 11, 2013 | Law And Legal Services


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The creditors are calling you non-stop, but you don’t have any money to satisfy them with. If you did, you would have paid your bills already and not have gotten to this point. The problem is, you suffered a loss of income that made it impossible to pay your debt. You need a way out, and it’s looking like bankruptcy is the way to go. However, bankruptcy is a larger part of a collections defense Knoxville that stops your creditors in their tracks for good.

When you don’t pay your debts as you agreed to, you have little to no defense against the collections. The creditor has the ability to sue you in court to garnish your wages or your bank account for repayment. The problem is, the amount of money that’s demanded is way above what you owed due to the fact that fees and penalties were tacked on every time you missed a payment. It takes you a very long time to get rid of the garnishment. In the meantime, you’ve got money being taken out that could be put to use elsewhere.

The best way to create a collections defense Knoxville is to use bankruptcy as a legal tool. Bankruptcy allows you to discharge most or all of your debts in such a way that the creditors can never contact you again. The ban on contact and attempts to collect a debt are permanent, lasting throughout your entire life. In return, you get to start your financial situation over again as if you never had credit before. There are inconveniences that come with the fresh start, but they are quickly overcome as offers of credit start showing up again not long after the discharge.

The other way to defend against collections is to go to court when the creditor sues you. You can go in front of the judge and explain why you can not pay your debt as owed, requesting that the lowest possible amount be garnished from you to repay the debt. But why repay an unfair balance, and for years? Your credit is already severely damaged. Filing for bankruptcy stops all of the pain while wiping your slate clean. You start rebuilding sooner than later with bankruptcy.