If you are considering filing for bankruptcy, you may know very little about it or not even realize that there are various options for you to choose from. However, when you face extreme debt, bankruptcy can actually be an incredibly useful tool that gets your life back on track. It can help stop debt collectors’ phone calls, lawsuits, and many collection actions. Bankruptcy does not always stop all creditors, however, and it cannot take away all obligations. Thus, it is important to get the help of an attorney who is familiar with the different types of bankruptcy and knows your situation inside and out so that they can direct you as to the best course of action. If you are considering bankruptcy as an option and would like to know more information, please reach out to an attorney.
What are the benefits of bankruptcy?
Many people are scared to apply for bankruptcy because they feel that they have no options for getting out of debt and that they have failed in some way. However, many people all around the nation are struggling with debt, which is why filing for bankruptcy could be a great option for you. It can help you wipe out many of your financial obligations and give you that clean start you need. The two main types of bankruptcy that we can help you decide between are:
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
One of the greatest benefits of filing for bankruptcy is that you can stop creditors from harassing you. When you do file for bankruptcy with a court, they will put in place an automatic stay. This typically stops lawsuits, creditors from calling and harassing you, and wage garnishments. It is important to note that it will not stop everything, but it can bring a great deal of relief to your daily life. Additionally, filing for bankruptcy can help you if you have an eviction notice pending or some type of foreclosure or repossession that is still ongoing.
Choosing Between Chapter 7 and Chapter 13 Bankruptcy
When you and your attorney are looking at the different types of bankruptcy, one will likely clearly be more beneficial to your situation. For example, if you file for Chapter 7 bankruptcy, you can lose property if you are behind on payments. Chapter 13, however, offers many benefits.
Chapter 13 Bankruptcy
If you have an income and can begin paying at least a portion to creditors, you could potentially stop a mortgage foreclosure and make a deal with the lender regarding repayment, and you could even keep certain property with a bankruptcy exemption.
It is crucial that you are straightforward and honest with the attorneys you work with so that you can determine which type of bankruptcy is best for you.
For more information on bankruptcy, please call an attorney today.