Why File for Bankruptcy?
Filing for bankruptcy is a major life decision. It affects your business, your finances, and your livelihood. But when it’s the right thing to do, it can save you from drowning in debt. Here are a few things that bankruptcy may be able to do for you.
End Creditor Harassment
When you file for bankruptcy, the U.S. Courts will prohibit most creditors from collecting payments from you. This is known as an automatic “stay.” If you haven’t filed for bankruptcy yet, however, these companies are probably harassing you for money. When you hire Bankruptcy Done Right, from day one, we will handle the phone calls and reduce the stress put on you from creditor harassment.
Avoid Home Foreclosure
Both Chapter 7 and Chapter 13 bankruptcy can help you stop foreclosure on your home. Chapter 7 can temporarily stop foreclosure if you are current on your mortgage payments but are in debt. However, if you are behind on your payments, the mortgage company can ask your trustee to continue with the foreclosure and liquidate your property as soon as you file your case. On the other hand, with Chapter 13 bankruptcy, you can avoid the sale of your home entirely as long as you file your petition up to the day before the scheduled foreclosure.
Stop Car Repossession
If the bank lender has not repossessed your car yet, once you file for Chapter 13 bankruptcy, the automatic stay will stop the lender from repossessing it. If your repayment plan makes any missed car loan payments and you make those payments on time, the lender can’t repossess your car afterward either. You may need to make payments during the bankruptcy process to ensure you’re protected from repossession. Chapter 7 also imposes an automatic stay. However, your lender can still request court permission to repossess your car before liquidation of assets is complete.
Stop Wage Garnishments
When you are in debt, some creditors can garnish your wages to get paid what you owe them. However, due to the automatic stay, they cannot lay claim over the money you make if you are in the process of bankruptcy.
Bankruptcy is Complex. Get the Help You Need.
Contact Bankruptcy Done Right™ to schedule a consultation if you are considering bankruptcy. An experienced member of our team will confidentially discuss your situation and weigh your options with you. Then, we’ll explain how we can help if you decide to proceed. There is no obligation when you contact us for a free initial consultation. If you hire us, we’ll help you tackle the process efficiently and correctly to secure your future.
