5 ways bankruptcy can help you get debt relief

5 ways bankruptcy can help you get debt relief

Are you being harassed by bill collectors? Are your wages being garnished? Is your home facing foreclosure?

These are all stressful situations that can be eased through bankruptcy protection.

Nobody sets a goal of going bankrupt. But in some cases filing for bankruptcy is a wise way to get financial relief and a fresh start.

Here are five reasons bankruptcy may be a good move for you:

*When you file bankruptcy, anybody you owe money gets notified and those creditors are ordered to stop trying to collect money from you. That’s part of federal law to protect consumers like you from aggressive bill collectors. Even the IRS has to leave you alone.

*If money is being taken out of your paycheck to cover debts, filing for bankruptcy can help you keep more cash in your pocket. A Chapter 7 liquidation eliminates almost all debt, while a Chapter 13 reorganization creates a repayment plan under the oversight of a bankruptcy trustee.

*Filing for bankruptcy doesn’t mean you have to give up your house and everything else you own. In fact, bankruptcy protection often can be a good way you can avoid foreclosure and keep your house by setting up more manageable payments.

*Ditto for a car. Just like filing for bankruptcy stops creditors from collecting on your debt, it also prevents a repossession while your case goes through the court. Even if your car already has been repossessed, you may be able to get it back by filing for bankruptcy and figuring the debt into your repayment plan.

*If you are being sued over unpaid debt, filing for bankruptcy will halt the lawsuit immediately just like it stops creditors from collecting money. Even if a court already has issued a judgment against you, bankruptcy can keep you from paying the debt. Filing puts your situation into bankruptcy court where the laws give more protection to consumers.

Want to know more about how bankruptcy protection can help in your situation? An experienced bankruptcy lawyer can guide you.

At Foley Law Offices, PLLC, we strive to give you relief from the headaches and anxiety caused by debt-related stress. Call our office at 734-462-7500 to schedule a free consultation.

2017-08-15T15:08:48+00:00