Lawsuit Protection: Is Bankruptcy The Right Solution?
How Filing For Bankruptcy Can Help You Stop Lawsuits In Arizona
If you fall behind on your payments to your credit card, your loan, your mortgage, or your car loan, the first thing that’s going to happen is you’ll start getting a lot of emails, calls, and letters telling you that your payment is late and asking you to pay immediately. You’ll see late fees being added to your bills, and they’ll only compound the longer it takes for you to pay what you owe.
Over time, those calls and letters will intensify. You may even start getting threats about possible legal action. You start thinking about your options, and you wonder if you should call a Gilbert bankruptcy attorney. But you may wonder if bankruptcy will actually help you if you are facing the threat of legal action. Here’s what you need to know:
The Automatic Stay
When you file for bankruptcy in Gilbert, an automatic stay is issued. What that does is put an automatic stop to any action by your creditors. Legally, your creditors are not allowed to contact you about your debt until your bankruptcy filing is resolved. They cannot send you letters or call you to try to collect on your debt. They cannot initiate any legal action against you. If any legal action was initiated against you, it will be put on pause.
Creditors can seek permission from the bankruptcy court to take action against you. That’s why working with an experienced bankruptcy attorney is so important. Your bankruptcy lawyer will work to block attempts by creditors to have the automatic stay lifted or to pursue action against you.
If you file for Chapter 7 bankruptcy, you can have all of your unsecured debt discharged. If you have accumulated a lot of credit card debt, medical debt, or other unsecured debt, Chapter 7 bankruptcy can be a great option for not only eliminating your enormous debt, but also evading a lawsuit or other legal action by your creditors.
When your bankruptcy case is discharged, you will no longer legally owe these debts. That means that your creditors can no longer bring action against you, and if they have a lawsuit pending, it will be dismissed. Chapter 7 bankruptcy can unburden you of your debt while also helping you to avoid legal consequences.
Chapter 7 bankruptcy cannot discharge all your debts. If you are struggling mostly with secured debts, such as a mortgage, then Chapter 13 bankruptcy might be right for you. Chapter 7 bankruptcy also can’t help you stop foreclosure proceedings. So, if you have fallen significantly behind on your mortgage and you want to save your home, you should consider talking to a bankruptcy attorney about how Chapter 13 bankruptcy may be able to help you.
Under Chapter 13 bankruptcy, your debt is reorganized into a new payment plan that you can afford. Your delinquent mortgage payments can be rolled into this plan, helping you to catch up and save your house from foreclosure proceedings. If you have a second mortgage, you may even be able to “strip it off” through bankruptcy. If the value of what you owe is more than the value of your property, you may be able to have that amount discharged with your bankruptcy. You’ll need to talk to a Gilbert bankruptcy attorney about the specifics of your case to determine what will be possible.
By the time your debt problems have gotten so severe that you are facing a lawsuit or foreclosure, you may feel desperate, as if you don’t have any options. But filing for bankruptcy may help you to get out from under your debt while also protecting you from legal action.
Contact Gilbert’s Leading Bankruptcy Attorneys
Call Gilbert Bankruptcy Lawyers to learn more about how filing for bankruptcy may help you with your debt and your legal troubles. An experienced bankruptcy lawyer from our team will examine your finances and help you understand the best options through bankruptcy. Our goal is to help you get the maximum debt relief possible while also protecting your assets wherever possible. Don’t give in to despair, and don’t listen to threats from your creditors. Call our bankruptcy law office in Gilbert today to schedule a consultation with a bankruptcy lawyer and learn more about your legal rights for debt relief.