Is it a Consideration?
Chapter 7 Bankruptcy:
Unfortunately, at times, people are faced with the unfortunate situation of having more debt than they can handle.
Contrary to credit card company assertions, most people do not intentionally and willingly overspend so that they cannot meet their financial obligations. Generally, unexpected expenses like medical emergencies, loss of jobs, wrecks with uninsured motorists, etc., cause sudden unexpected financial obligations that we cannot reasonably meet.
Chapter 7 Bankruptcy Prevents Your Creditors From Harassing You!
Once a petition for Chapter 7 bankruptcy is filed, a bankruptcy carries an “automatic stay”, which prevents your creditors from taking any further debt collection efforts including harassing you to pay the debts. Creditors cannot initiate nor continue any lawsuits, wage garnishments, or even telephone calls demanding payments.
What About my House and Car?
Secured creditors, who make car loans, mortgage loans, etc., are treated differently than unsecured creditors like credit card companies or medical providers. Generally, secured creditors can have the automatic stay lifted if you are not current with your payments or if you cannot reasonably be expected to make your payments. If you are up to date on those payments to secured creditors and you have a good payment history, generally they will allow you to reaffirm your debt to them so that you can keep your home or car.
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We view our clients as people, something that has enabled us to effectively practice law for more than two decades.