Have you heard the term stealth bankruptcy? Millions of Americans attempt it every year. If you are not sure of what it is or have never even heard of the term, you will have a thorough understanding of it after you have finished reading this article.
Stealth bankruptcy essentially involves individuals running from their creditors until the statue of limitations on the company’s ability to collect the debt has passed. Individuals attempt to “wait it out” until legally their creditors can no longer force them to pay the debt. Stealth bankruptcy is very difficult and requires individuals to hide from their creditors. This way of handling one’s debt is obviously unethical. However, some individuals fell trapped, become afraid and frustrated with the debt collection process and the stress that comes along with it. Subsequently, they attempt to disappear and become untraceable. Below are some common practices of individuals who attempt to engage in stealth bankruptcy.
Individuals often will move from their home and not provide any forwarding address. This move may be made because they can no longer afford to make the payments on their home and are forced to move. They simply don’t provide a new address so that their creditors can’t locate them.
Changing one’s phone number is also often done when an individual attempts stealth bankruptcy. Collection calls can be a pain. Debtors are constantly asking the same questions, you keep giving the same answers and they still keep calling. This can become maddening, especially if you don’t have the money to make any payments. As a result, some people simply change their phone number to avoid the calls.
Performing a stealth bankruptcy makes it necessary for individuals to live strictly on cash. If they apply for credit, they can be tracked down. Therefore individuals simply cash their checks and then make necessary payments.
As one can see, stealth bankruptcy can be very difficult to pull off. It will cause a unique set of stressors. Individuals must attempt to become untraceable. In this day and age that is very difficult. This is especially true if an individual wants to make some sort of major life change such as starting a new job, or getting married. They will then be forced to come clean and the by then situation has probably already become much worse. It is much better to face one’s creditors, attempt to come up with some sort of repayment plan. If this can’t be handled on one’s own, the help of a professional may be needed. A lawyer, debt consolidation agency, or financial counselor, may all be able to help individuals take back control of their financial life.