Every year over one million consumers use bankruptcy as a way to help resolve
their debt obligations. Bankruptcy is a unique financial process that
includes court-supervision to help stop legal action such as lawsuits,
wage garnishment, collections, foreclosure and repossession . While bankruptcy is a powerful tool, you may wonder if it is the best option for you when overwhelmed with debt. The following details may help you understand your options and what you may want to discuss with a qualified bankruptcy attorney.
Can Filing Bankruptcy Help?
This is something many debtors think about if they find themselves avoiding
creditors, being threatened with foreclosure or repossession, or collections.
Deciding to file bankruptcy could put an end to such processes.
Personal Filing Options: Chapter 7 or Chapter 13 Bankruptcy?
Chapter 7 bankruptcy can eliminate or discharge unsecured debts such as
medical bills, store charge cards, credit card debt, utility bills and other personal
loans. Chapter 13 bankruptcy may help stop
foreclosure through an interest-free repayment plan approved by the court that lasts
anywhere from 3 to 5 years. Many consumers don’t realize that bankruptcy
has the ability to improve your credit since you get rid of old debt to
get the fresh start you deserve.
When Do You Need Legal Protection from Creditors?
Bankruptcy allows you to forgive debts through legal regulations while
providing protection from creditors. The
automatic stay helps you keep assets such as your house or vehicle when facing foreclosure
or repossession. The same is true if you are experiencing wage garnishment
making it difficult for you to make necessary living purchases. There
is much to learn about the filing process through a bankruptcy expert.
Don’t be afraid to learn more about the process or delay getting started.
This is an opportunity presented by the U.S. Bankruptcy Code to give consumers
a fair chance at resolving debt and getting a fresh start.