Having the misfortune of experiencing severe financial difficulties can be an extremely stressful event for anyone to go through. Unfortunately, there are many individuals that may have a weak understanding about their options for getting relief from these difficulties. In particular, bankruptcy can be an effective option for those that are facing dire financial circumstances. If you are unfamiliar with declaring bankruptcy, the following information may help you to be better prepared to decide whether to use this form of legal protection.
What Happens To Your Home During A Bankruptcy Filing?
Some individuals may be hesitant about filing for bankruptcy because they assume that they will automatically lose possession of their homes. Luckily, this does not have to be the case as you may be able to file for Chapter 13 bankruptcy protection. Under this type of protection, your debts are reorganized so as to make it easier for you to pay them. By filing for this type of bankruptcy, you may be able to negotiate friendlier repayment terms when it comes to your home's mortgage. The alternative to a Chapter 13 will be a Chapter 7, and this type of bankruptcy can result in the liquidation of your assets, such as your home.
How Long Will It Take For Creditors To Stop Collection Actions?
Many individuals may delay filing for bankruptcy until they are facing an emergency, such as a foreclosure. Luckily, you will be protected against aggressive collection actions the moment your bankruptcy is filed with the courts. While it can take several months for the bankruptcy to be finalized, creditors will be legally required to cease any collection actions against you. If you are contacted or threatened by creditors, you should avoid answering any questions and refer them to your attorney. If they fail to comply, you may be able to sue them for violating your bankruptcy protection.
What If You Are Unable To Afford The Services Of A Bankruptcy Attorney?
Sadly, there are many individuals that will operate under the assumption that they can not file for bankruptcy protection because they can not afford to hire an attorney. However, bankruptcy attorneys are used to working with clients that may have trouble paying the costs required for representation and court costs. As a result, it can be common for these professionals to offer their clients payment plans that will allow them to gradually pay for the costs of representation while seeking the protection of bankruptcy.
If you have more questions about filing for bankruptcy, check out http://timgeorgelaw.com.Share
7 September 2016
Although many people don't think of having legal counsel as improving their life, I have found that it has really helped me to feel empowered as a business owner. Without my lawyer, it was really difficult to figure out what I could say and what I couldn't say, and it really made things hard when I was out and about trying to make business deals. Fortunately, after I found the right lawyer, things became a lot more straightforward. This blog is all about improving your life and streamlining your business with the help of a great lawyer. After all, you never know when you will find yourself in court.