What Bankruptcy Can Do for You

filling for bankruptcy

The federal bankruptcy laws were enacted to help men and women get a second chance, but they’re not a cure-all for financial problems. There are specific limits to the extent to which a bankruptcy filing can help you resolve financial challenges.

The Ways a Bankruptcy Filing Can Help

One of the most important components of the bankruptcy law is the automatic stay. When you’re struggling to pay your bills, one of the most onerous consequences is the seemingly endless calls and letters from creditors. You can get to the point where you just want to turn off the phone and avoid the mailbox. The automatic stay provides immediate protection from that. Once you file for bankruptcy, the automatic stay forbids your creditors from calling, writing or taking any other action to collect the debt, other than through the bankruptcy proceeding.

Because of the automatic stay, you can use a bankruptcy filing to temporarily suspend a foreclosure, eviction or repossession. It’s important to understand, though, that the automatic stay only affects attempts to collect a debt. If the creditor has a judgment for eviction, for example, the bankruptcy filing may not stop that (depending on the state in which the proceeding was initiated).

A bankruptcy can help you discharge unsecured debts, such as credit card debts or medical bills. You may also be able to get out from under debt on secured property, such as a mortgage or car note, but you’ll typically have to relinquish the property as well. You can, however, seek to renegotiate the terms of secured debt through Chapter 13 reorganization, where you can set up new payment arrangements to be made over a three-to-five year period.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.

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Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

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