A common question when an ordinary person files for bankruptcy relief is "What happens?". Within a week of filing a chapter 7 or chapter 13 bankruptcy, the bankruptcy court clerk send out notices of the bankruptcy to all of a person's creditors using a list that the person supplies. This notice contains instructions that all debt collection activities are to immediately cease, which means that creditors and collectors can no longer call you and if they are garnishing wages, the garnishment must stop. This stop order is called a bankruptcy "stay", and it goes into effect the moment the bankruptcy paperwork is filed with the bankruptcy court. This stay also stops repossession and foreclosure.
Preparing to file bankruptcy can seem to be an insurmountable task to accomplish. But once you've worked with your attorney to complete, sign and file the petition, you are presented with another hurdle to move past, the Meeting of Creditors. But don't let the name of this hearing deter you as this is a necessary and fairly short hearing.
Bankruptcy was one thought of as an easy way to get out of paying what you owe. This isn't the case since the revamping of the system that occurred a while back. Now, bankruptcy is more of a tool that can help you to take charge of your financial situation. We know that you might want to know more about how bankruptcy might help you.
By the time a person decides to file for bankruptcy, he or she has probably exhausted all other options for dealing with the debt. Some people put off filing for bankruptcy simply because they don't think that the process will actually help them.
In our recent blog post, we discussed some facts about credit card debt in this country. When it comes down to it, there is only one thing that matters about credit card debt -- keeping it down to a manageable level. If you are in credit card debt, you might be ready to throw in the towel. You might want a do-over. Bankruptcy might be one way that you can make this happen. We can help you to learn if this is an option for your situation.
Credit card can lead you into a debt hole that is difficult to get out of, especially if you are already on a tight budget. For people who do have credit cards, the temptation to use them is often great. If you are one of those people, but are also trying to get out of debt, knowing when to use your credit card is imperative.
Bankruptcy doesn't have to be the end of your financial life. While it's usually a fairly big bump in the road for most people, bankruptcy is actually meant to be a new beginning. Contrary to common belief, it doesn't completely wipe the slate clean. It does, however, make it easier to clear away tallies that have long stained your slate. Working with an experienced bankruptcy lawyer can help you come through the process with a clearer slate, and following some good financial goal tips can help you recover quicker in 2017.
Filing for bankruptcy isn't a decision that most people make lightly. In fact, it is a decision that is sometimes made out of desperation. There is one aspect of bankruptcy that some people find very helpful -- the automatic stay. This is something that puts a stop to harassing phone calls and other communication from creditors.
The meeting of creditors, which is commonly referred to as the 341 meeting because that is the section of federal code that describes it, is a required part of every Chapter 7 or Chapter 13 bankruptcy. It is also a piece of the process that many people stress over needlessly.
Do you feel like your future plans have been completely derailed by your debt? Maybe you wanted financial freedom so you could travel more or devote time to your hobbies. Maybe you'd like to spend more time with your kids and less time at the office. However, thanks to your debt, it all looks impossible, and you can't see any way out.