Loss of job or serious illness can wreak mayhem on a household’s income and at some point in time you might want to look at speaking to an individual bankruptcy lawyer. Although almost any person can try to file bankruptcy, the option to do so can still be extremely challenging.
In truth, it’s a decision that ought to be given good consideration and thought, rather than acted upon without examination of various other alternatives. Nonetheless, there are numerous reasons bankruptcy is the right decision for someone, as well.
Present day society looks down on individual bankruptcy with great social judgment. Having said that, irrespective of the fear the stigma often affiliated with bankruptcy causes, you’ll find at least 5 good reasons to think about declaring bankruptcy.
1. End pay garnishments right away. If you might have lost your normal job and picked up a lesser-paying job, credit card companies may still come after you for any money to which they have a order from the court permitting them to collect by garnishing up to 25 percent of your wages for creditors aside from for child support, past-due taxes and a number of other exceptions. Declaring bankruptcy, either Chapter 7 or 13 will immediately stop all garnishment actions.
2. Put A Halt To Collector’s Calls. Just because you are not working, does not mean creditors won’t be calling you. Once you file for bankruptcy, when a creditor calls, give them the name and phone number of your bankruptcy lawyer and the calls should halt.This little act can help you feel 100% better, as your phone won’t be ringing off the hook.
3. Get rid of most of your debt. Processing a Chapter 7 bankruptcy effectively wipes your slate clean, getting rid of all but a few excepted bills. However, Chapter 7 might also require that you hand over your home and car or truck, unlike Chapter 13.
4. Immediately stop all foreclosures or repossessions. If you’re presently working, you may be able to file for Chapter 13. Any past-due payments for your home mortgage and car loan can be rolled into the Chapter 13 filing, allowing you to maintain possession of your home and your auto.
5. Get rid of most medical bills. With some exceptions, medical bills are viewed as unsecured and if you do have a great deal of medical bills they usually are eliminated through Chapter 7 bankruptcy.
You need to meet with a bankruptcy attorney to find out if you can file for Chapter 7 or Chapter 13. While it is not mandatory that individual bankruptcy is filed by a legal representative, the help they provide insures you are addressed fairly and that the bankruptcy proceedings are handled efficiently. Your case can even be dismissed without an attorney there to represent your case.