Anyone running away from a substantial amount of debt has likely seen a few of the ugly sides of being grossly in debt. Collection agencies and creditors have a string of sneaky and legal tricks they deploy to obtain money owed to them. Below are three tips to avoid falling into this trap while trying to recover. It is worth noting that working with a bankruptcy lawyer in Baltimore can put these strategies into effect, and actually move a person out of a defensive atmosphere and into proactive change.
Applying for Work: The Credit Report
An employer may want to review a potential hire’s credit record, and they are completely allowed to do so if a potential employee says it is acceptable. For better or worse, the position or company may be stated in the credit report as a credit inquiry. Creditors can actually receive that information, and they may use it to look up where someone is working. The tip is to stay away from companies that want hard inquiries in credit, which can be easier said than done.
Keep as much money as possible out of the immediate bank account and under the bed. It may not be realistic for paying bills, but creditors can follow threads right to an open bank account. They do not need permission from the local bank. They only need authorization with a corporate branch- and they often get it.
Receive Legal Representation
These scenarios can often be avoided, or at least fairly contested, with legal representation from a bankruptcy lawyer in Baltimore. Once the bankruptcy is engaged and active, a lot of these areas are thwarted until an agreement is made with all involved parties.
All of this leads to an important reality. These problems may not go away. It is better for an individual to take action now with a bankruptcy lawyer in Baltimore instead of waiting until the problem intensifies. They will enact these practices, and others, during the bankruptcy proceedings. But, it should have never gotten this far. Now that it has, what is going to be done about it right now?