No one wants to find themselves in over their heads in debt. Most people borrow money with the best of intentions to pay it back according to the terms of the agreement. Unfortunately, unexpected events (such as a death in the family or an unexpected layoff) as well as a general lack of financial management knowledge can make repaying creditors nearly impossible for you. What is even more unfortunate is that creditors rarely behave with kindness and understanding toward their customers when they are unable to repay their debt as promised. As a result, they may attempt to sue you to get their money back. Fortunately, a bankruptcy petition can help you get out of this negative situation quickly. Here are two ways that bankruptcy can accomplish this goal:
The Automatic Stay
Bankruptcy is designed to protect consumers who are experiencing financial hardship from aggressive and unscrupulous creditors. Consequently, consumers who choose to file bankruptcy are granted an automatic stay as soon as the petition is filed. As long as the automatic stay is in place, your creditors must cease their collection efforts -; including any lawsuits. This is good news for those who have received notice of their creditor’s intent to sue and need to Stop Lawsuits due to Debt, as it means you may have a shot at stopping their legal action.
Debt Wipe-Outs and Repayment Plans
If you file a Chapter 7 bankruptcy petition, you’ll likely be able to have most of your unsecured debts wiped out when your case closes in six months. If you don’t qualify for a Chapter 7 bankruptcy and must file for Chapter 13, you’ll still be able to create a debt repayment plan that works for you budged and allows you to catch up on missed payment. At the end of both cases, your remaining unsecured debt can be discharged, in which case your creditors will no longer have the right to go after you for money.
If you plan to file a bankruptcy petition in order to Stop Lawsuits due to Debt, it’s important that you contact an experienced attorney. Time is of the essence in these situations, and waiting too late can result in a negative judgement against you. Get in touch with a qualified lawyer today to discuss how the right bankruptcy petition may be able to help you get out of debt and prevent a lawsuit from ruining your financial future.
Visit Thompsonanddeveny.com for further details.