Bankruptcy is a big decision and we need to be sure that we’re doing everything possible in order to stay ahead of the problems and concerns that can come up here. When you start looking for More Info about bankruptcy, you’re trying to make sure that you have a good understanding about what it is that you’re getting and how it can help you.
In this article, we’re going to take a closer look at what bankruptcy can help with and why you may want to consider it as a option for dealing with your debt.
Eliminates Most Debts
One of the reasons that bankruptcy is worth the effort is because it can help to eliminate most of the debts that you may be dealing with at a specific point in time. This includes credit cards, loans, mortgages, and other things that may be causing you a financial burden. But, it’s also important to know what isn’t included. Your bankruptcy doesn’t include tax obligations, divorce related monies, student loans, or fraudulent debts.
Reorganizes Your Debts
If you go with a chapter 13 option, you will find that you are able to reorganize your debt into something that is much more reasonable. By putting everything into a reasonable payment plan, you’re able to start paying things off. That payment plan is usually for a lower amount of money and it is much easier for you to achieve your goals. If there are any debts that aren’t included in your reorganization, then you need to continue to pay them as you usually would. It makes it easier to work things out and it lessens the load of your debt.
Stops Any and All Collection Activities
One of the most important parts of filing for bankruptcy is called the automatic stay. This actually stops any and all of the people that you’re in debt to from bothering you or trying to get their money back from you. That means that those you owe money to cannot sue you, garnish your wages, foreclose on your home, repossess your property, or anything else. This automatic stay prevents you from getting more fees and, if something is at a collection agency already, then that agency has to stop all communication with you.
This sort of protection is so that you can focus on working out the details of your issues without the additional stress of dealing with those collection calls. Your debtors basically have to wait it out and see what the results of your bankruptcy filing are going to be.
There’s a lot of effort involved in relation to bankruptcy, but your lawyer can be your guide as you work out what you want to do and how you want to do it. Explore what your rights are and see what you can find for the efforts you’re putting into it. When all is said and done, you will be much better off and ready to start working toward the financial freedom that you deserve to have.