Legal Options and Bankruptcy


Every client’s legal options depends on their situation. Getting past legal problems can be crucial for maintaining or rebuilding finances.

Debtors Unite has taken the steps to discover best options when it comes to various legal strategies for protecting financial health. While the information has been gathered to improve financial literacy, it does not take the place of competent legal advice. A licensed attorney may be the best option, though it does not hurt to do a little homework prior to scheduling a meeting.

Statute of Limitations on Debt

Every debtor has an established limit that protects them from judgments following a certain time period. This statute of limitations on legal action prevents a creditor from having the right to force a judgment after the debt is no longer collectible. Some creditors do still win judgment on expired debts, so it is still the debtor’s responsibility to appear in court and protect their rights.

Avoiding Wage Garnishment

Debtors Unite has taken the time to evaluate wage garnishment limits in every state. Someone who is facing a judgment may find out whether they are likely to have a portion of their paycheck garnished by their employer.

This type of action can be embarrassing for an employee. Furthermore, it takes away the opportunity to negotiate a more advantageous repayment plan with a creditor.

Legal Advice

Legal advice should be obtained when a situation exists that could have big consequences on a person’s finances, yet they lack the expertise to be able to pursue an optimum course of action. These situations may include disability claims, divorce, alimony and child custody cases, negotiating tax bills and engaging in lawsuits.

Finding a reputable attorney can be a wise option, particularly in cases of bankruptcy or where a debtor’s rights have been infringed and they would like to sue the debt collectors. While prepaid legal is usually a waste of money, attorneys listed through the bar association in each state may be a proper choice. For those who cannot afford an attorney, legal aid does provide free advice to extreme low income households.