Bankruptcy is a tool that many people use when they are in debt that they can’t foresee themselves getting out from. This can also be a major decision that takes some consideration. Here are some benefits to filing for bankruptcy.
Temporarily Stop an Eviction
Debt can make it impossible to pay your bills. You may find yourself struggling with your rent or the mortgage, thus wind up in a situation where you may be evicted. When it comes to evictions and foreclosures, you can stop it from happening. This may only be temporary, though. While your bankruptcy is in play, the litigation on other matters will be temporarily stopped. If your landlord is already evicting you, odds are you cannot end the eviction for good. With a foreclosure, you may be able to use bankruptcy to get your account current again and catch up on payments.
End Creditor Harassment
To be in debt is stressful. You may feel like you are drowning in debt and cannot get on top of your bills. When this happens, the harassment from creditors can add insult to injury. You know that you owe creditors, but they continue to call and harass you for payment. If you plan to file for bankruptcy, this can mark an end to the harassment and phone calls.
When you file for bankruptcy, the courts order an automatic stay. This is an order that stops creditors from collecting on your accounts. It can stop the calls, it can end any wage garnishments and lawsuits. Now, this is not always the case. There are some debts that you cannot stop paying. For instance, creditors who collect child support payments can still demand payment.
Dismiss Credit Card Debt
When you file for Chapter 7 bankruptcy, you can clear out your unsecured credit card debt. While this will harm your credit, it can alleviate the stress of these debts. Some debts include your credit card bills, overdue utility payments, personal loans, and medical bills. While Chapter 13 bankruptcy does not clear out your debt, it does clear some of the debt and provide you with a payment plan to clear your debt.
When it comes to bankruptcy, there are a lot of different benefits. If you are in debt and worried about creditor harassment or foreclosure, then it may be time to think about bankruptcy. Set up an appointment with a lawyer, like a Chapter 7 bankruptcy lawyer from the Law Offices of Ronald I. Chorches, to find out more about your options.