Tag Archives: DebtRelief

What are the Most Common Myths About Filing for Bankruptcy?

Bankruptcy has a bad reputation for the wrong reasons. It is also poorly understood by many in our society. Some of the myths about bankruptcy can make people less likely to file even when they would benefit. Common myths about bankruptcy include but are not limited to: It permanently ruins your finances. Bankruptcy attorneys are used to hearing this concern from potential clients. However, your credit scores are not permanent and can be improved in the years after you file. Bankruptcy filings do not stay on your credit reports forever. You can improve your credit scores by showing financial stability, such as paying your bills on time. Only deadbeats file for bankruptcy. The vast majority of the American population could be thrust into an impossible financial situation with no warning. Job loss, chronic illness and serious injuries could make it very difficult to meet your financial obligations. Even with the…
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What are the Possible Benefits of Chapter 13 Bankruptcy?

Depending on their individual situation, people filing for bankruptcy on consumer debts may choose between Chapter 13 and Chapter 7 bankruptcy. With a Chapter 13 bankruptcy, also called the “wage-earner’s bankruptcy”, you pay back your creditors during a three to five-year repayment plan. Depending on your situation, Chapter 13 may have multiple benefits. Stop foreclosure: If you are behind on payments and your mortgage lender is threatening to foreclose on your house, then Chapter 13 bankruptcy is very useful. Chapter 13 bankruptcy could allow you to stop foreclosure and become current on payments. Reduce unsecured debts: You may end up only paying pennies on the dollar for unsecured nonpriority debts during a Chapter 13 bankruptcy. After completing the repayment plan, these debts may be discharged. Reduce what is owed on secured debts: Depending on the circumstances, you may be able to reduce what is owed on secured debts if you…
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Can Filing for Bankruptcy Stop Collection Attempts?

Creditors have several options to recoup their losses if you have defaulted on your debt obligations. They may seek a judgment in court to garnish your wages. If you have fallen behind on mortgage payments, then your creditor could foreclose on your home. These are only two possible examples of what can happen when you become delinquent or default on debts. However, you may be able to temporarily stop these collection attempts by filing for bankruptcy. An automatic stay is issued after your bankruptcy application is filed. It can prevent collection attempts that include: Foreclosure: If you have fallen behind on mortgage payments, then the automatic stay could prevent your lender for foreclosing on your house. You could even file for bankruptcy at the last possible minute to prevent foreclosure. Wage garnishments: The automatic stay can stop most types of wage garnishments. For example, it could stop wage garnishments that…
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