Bankruptcy is known for providing financial relief in various ways that help debtors get a fresh start and regain financial control. You may be able to stop foreclosure, prevent or regain utility service, or avoid repossession.
Even though there are different bankruptcy chapters you have the ability to get help through bankruptcy you need through the following:
Automatic stay to stop collection attempts from creditors. You can get a better grip on the situation when you don’t have so much pressure and stress to make a payment with money you don’t have. You can file Chapter 7 bankruptcy or Chapter 13 bankruptcy and receive this protection instantly. The court halts collection action from creditors (such as garnishments, pending eviction, harassing letters and phone calls) to give you time to work out a solution.
Affordable repayment plan. Chapter 13 is an option to consider if you have tried negotiating with your creditor on your own with no agreement being reached. Maybe you are facing foreclosure or repossession and want to keep your property. Or, you have fallen behind on mortgage or vehicle payments and want to catch up on missed payments. You can pay off what you owe under a restructured court-approved payment plan that can last up to 5 years.
Debt reduction or elimination. Chapter 13 may allow you to reduce what you owe on outstanding loans such as a vehicle depending on what it is actually worth. Chapter 7 bankruptcy may allow you to discharge unsecured debt such as credit card debt, personal loans and medical bills.