The Advantages Of Filing Bankruptcy

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Bankruptcy will stop foreclosure on a home

If you're facing foreclosure and need to stop the bank from taking your property, bankruptcy can help. If you file for bankruptcy, then the bank must stop any foreclosure proceedings until after the bankruptcy is over.

If you're behind on mortgage payments, can't sell your home and need to keep the bank from foreclosing on it, filing for bankruptcy might be an option. In a Chapter 13 bankruptcy, you must make payments to a trustee who will use those funds to pay off your creditors over three to five years. A Chapter 7 bankruptcy requires no repayment plan but will wipe out most of your unsecured debt. Either way, a bankruptcy filing stops any pending foreclosure action until after the case is resolved.

Bankruptcy will stop repossession of a car or other property

A bankruptcy filing stops repossession. If you're facing the loss of your car or other property, you can file for Chapter 7 or Chapter 13 bankruptcy protection to stop that from happening.

It's important to note that bankruptcy does not stop repossession if you have already defaulted on your loan and the lender has started the repossession process. Bankruptcy only stops the lender from taking further action toward repossessing the property while your case is pending.

Bankruptcy will stop wage garnishment

If you are facing wage garnishment, bankruptcy may be a good option. Bankruptcy will stop wage garnishment and give you a fresh start.

Wage garnishment is a common occurrence today. If you owe money to a creditor, they may try to collect by taking money out of your paycheck or bank account. This can be embarrassing and stressful for the debtor, especially if it happens at work or in front of friends and family.

If this happens, bankruptcy can help stop it from happening again. Bankruptcy stops wage garnishment immediately because creditors cannot take money from your paycheck or bank account while your case is pending.

Bankruptcy will stop debt collection harassment

A bankruptcy filing stops all collection actions against you, including lawsuits, wage garnishments and bank account levies. The automatic stay is the most important part of the bankruptcy process because it protects you from creditors who want to collect their debts.

Debt collectors can’t threaten you or call you at work if you’re in bankruptcy. They can’t call your family members or friends either. And they can’t threaten you with jail time or other criminal penalties for not paying your bills.