When you need serious help with your finances, you might want to consider visiting a bankruptcy lawyer. A bankruptcy attorney might recommend using Chapter 7 if you qualify for it. Chapter 7 bankruptcy helps in many ways, but it cannot solve every problem. Here are three things it can do, though, that can help you get through this tough financial time in life.
1. Provide Relief from Your Creditors
The first thing that Chapter 7 can do is to provide relief from your creditors. When you reach a point in your finances when your creditors will not stop calling you, it is likely because you owe money that you cannot pay. You are probably behind on your payments and do not know what to do. When you initiate a Chapter 7 bankruptcy case, the court issues an automatic stay. The easiest way to understand this is by knowing that it is an order that prohibits your creditors from contacting you. As a result, the phone calls stop. Your creditors cannot call you anymore. The letters, emails, and texts will also stop, as your creditors cannot contact you with any method.
2. Forgive Some of Your Debts
The second thing Chapter 7 can do is to forgive some of your debts. Chapter 7 does not provide complete debt forgiveness for all debts. However, it does provide relief for some. Your lawyer can tell you which debts it will forgive and which it will not. You should talk to your lawyer about this before filing so that you know what to expect. If filing for Chapter 7 will relieve a lot of your debts, it might be worthwhile to use it for debt relief.
3. Temporarily Stop a Foreclosure
The third thing a Chapter 7 filing can do is to temporarily stop a foreclosure. Chapter 7 does not provide as much relief for foreclosures as Chapter 13, but it can give you some extra time. If you can catch up on your mortgage payments, you might be able to keep your home if you use Chapter 7. If you want to keep your house, talk to your lawyer about it. Your lawyer can help you find a way to keep it if this is one of your goals.
These are three helpful things that Chapter 7 bankruptcy offers. If you are interested in filing or asking questions, talk to a local bankruptcy attorney. An attorney can guide you with your options and decision.
Share18 November 2020
If your mountain of debt has grown so tremendous that you can't imagine a way out, then you need to contact a bankruptcy attorney. Even though filing bankruptcy can seem like cheating, it is sometimes the only option when you have consumer or medical debt that is consuming your paycheck and then being left unpaid. An attorney can take a look at your finances and recommend a pathway out of debt utilizing one of the several types of bankruptcy available. Learning more about this process can make it seem more approachable. Dig into the articles on this website to get started with that learning.
