you have been struggling financially for a long time now, you may be wondering how you will know when it is time to seek bankruptcy protection. Although no two situations are the same, below are some of the top reasons you should consider filing a Chapter 7 or Chapter 13 case:
- Foreclosure. If you are past due on your mortgage loan payments, your lender is likely threatening or proceeding with a foreclosure action. When you file a bankruptcy case, the lender is temporarily halted by the automatic stay from taking any further action against you. During this time you can not only continue to live your house, but we can also use the opportunity to begin negotiations with your mortgage lender.
- Asset Repossessions. If you have secured loans with assets such as your house, vehicle or other items pledged as collateral to the lender, your loan documents likely contain a provision that permits your creditor to seize the collateral upon your default under the contract. Your bankruptcy filing can stop the repossession process. Additionally, you may be allowed to reduce your car payment by adjusting the amount to be paid to your lender to the value of the vehicle (which is typically much lower than what you’re currently paying).
- Collection Litigation and Garnishments. As soon as your bankruptcy petition is filed, the automatic stay goes into effect and prohibits further collection activity against. This includes harassing telephone calls, demand letters and collection lawsuits. If a creditor has obtained a judgment against you and is pursuing a garnishment of your bank account and/or your wages, the automatic stay will stop the garnishment. In many cases, you can also discharge or eliminate the debt linked to the garnishment.
- Eliminate Unsecured Debt. If you are tired of making the minimum payments on your credit cards and getting nowhere, a bankruptcy can provide you relief. Most unsecured debt, including credit cards and medical bills, can be discharged in bankruptcy.
- Divorce. Divorce can wreck your finances. Not only can the divorce filing be expensive, but you will also be left with your portion of the marital debt. If you are overwhelmed by the debt you are left with after your divorce, filing a personal bankruptcy can help you take control over your finances.
Bankruptcy is the most comprehensive means for dealing with all of your debt and all of your creditors at once. If you are interested in learning more about eliminating your debt and obtaining a fresh start, call us today to schedule an appointment.
If you are interested in learning how filing a bankruptcy case can benefit you, contact Levitt & Slafkes, P.C., at 973-323-2953. You can also reach us by filling out our online form. We represent debtors in Chapter 7, Chapter 13 and Chapter 11 filings. Let us help you get the fresh financial start you need today.