If you are considering filing for Chapter 7 bankruptcy, it is likely you are facing numerous debts and struggling to pay them. Perhaps you have collectors calling at all hours of the day, or lawsuits pending against you by credit card companies. You have received notice that foreclosure of your home or repossession of your car is looming. Fortunately, Chapter 7 bankruptcy not only provides long-term debt relief, but also some immediate benefits.
When you file your petition, a court order goes into effect called the Automatic Stay. This stay prohibits creditors from any type of collection attempts, which halts all of the following:
● Collection calls and letters
● Wage garnishments
Not only does the automatic stay give you immediate relief from the constant reminders that your debts are overdue, but it also buys you some time. With foreclosures and repossessions on hold for the time, you can seek out solutions and alternatives that allow you to keep your property.
Stop Your Payments
When you file for bankruptcy, you should stop paying your dischargeable debts (if you haven’t stopped already). Discuss with your attorney which debts can be discharged and halt all payments. Not having to make large credit card or personal loan payment can free up funds to pay your secured debts, such as your mortgage and auto loan. It is important to stay on top of non-dischargeable debts, and not having unsecured payments will better allow you to do this.
Consult with an Experienced Bankruptcy Lawyer in Melbourne, Florida
At Harnage Law Firm, we consult with people who are considering bankruptcy and we can explain the entire bankruptcy process – including the benefits and possible drawbacks. If you are in over your head financially and want to explore your options, call a Melbourne bankruptcy attorney at 321.549.7886 or contact us online today.