There are many Rockville area residents who have run into financial problems. These problems happen because a person can become overwhelmed by unexpected credit card debt, a medical emergency, job loss, etc. Once a person has too many bills to pay, creditors can start calling. These phone calls can seem like they never stop. So, a person may wonder if bankruptcy can help their financial situation.
Automatic stay
When a person files for Chapter 7, Chapter 11, or Chapter 13 bankruptcy, creditor harassment will immediately stop. An automatic stay goes into effect which prohibits all creditors from taking any action to collect debt. This includes:
- Telephone calls
- Letters
- Wage garnishment
- Repossession
- Foreclosure
- Lawsuits
The stay acts like a pause button allowing the courts time to gather information on a person’s debt and assets. The court will then decide the priority of who will get paid first through last and how much of the debt they will receive, if any.
Seeking help in bankruptcy matters
A legal professional who is skilled in bankruptcy understands that their client is going through tough financial times. They can help their client rebuild their financial lives with strategic planning and sound legal advice. They can help their client understand the bankruptcy process, secure a loan modification or facilitate foreclosure mediation. They can assist with ending foreclosure, stopping wage garnishment, ending creditor collection activity and help their client receive many more benefits that bankruptcy can offer.
Bankruptcy can be a good option to help a family get their finances in order and start fresh. An attorney who specializes in bankruptcy can give their client straightforward answers and the assistance they need for debt relief.