Bankruptcy is a potent tool for getting rid of debt and starting over. One of the most potent debt relief alternatives accessible in the US is Chapter 7 bankruptcy. It eliminates your debts, giving you a clean slate. However, declaring bankruptcy is a personal choice, so it's critical to carefully assess if it's the best course of action for you.The best way to do this is under the guidance of a bankruptcy lawyer.
Bankruptcy benefits people in a number of ways, including the following:
- Even though you might have to give up some property, Chapter 7 is a quick way to eliminate many debts, frequently within three to six months.
- Credit card debt is typically discharged under Chapter 7. The bankruptcy judge dismisses any outstanding debt while the trustee pays creditors with the profits of asset sales.
- Chapter 13 might provide you time to pay off creditors while preserving assets, frequently at lower debt levels.
- Creditors cannot pursue collections after declaring bankruptcy. An automatic stay is a court order that is put in place after you file for bankruptcy and prevents creditors from contacting you or pursuing any legal action, such repossession and wage garnishment.
- A bankruptcy can frequently prevent or delay a foreclosure. Lenders must file a motion to lift the stay once the automatic stay takes effect and await the court's decision. Although applications to lift stays are regularly granted by courts, the procedure may take some time. You might be able to reorganize your finances and stop a bank from starting a foreclosure while filing for Chapter 13 in order to keep your home.
- Chapter 13 can be used to get rid of second or third mortgages. Second and third mortgages are categorized by the courts as unsecured debt in bankruptcy, and they have last priority in a Chapter 13 case. In this kind of bankruptcy, unsecured debt is frequently not paid by the debtor.
We have helped many people get out of debt. For a free initial consultation to discuss bankruptcy, contact Robert A. Siegel with ZSTS, online, or call 410-760-9433.
Robert A. Siegel with ZSTS, is a debt relief agency as described in the federal Bankruptcy Code. This law firm helps people file for bankruptcy relief under the Bankruptcy Code.