With the help of a bankruptcy attorney, you can navigate through the bankruptcy process successfully. Here are a few key things you need to know about bankruptcy:
Types of Bankruptcy: There are several types of bankruptcy. Chapter 7 bankruptcy is where assets are liquidated to repay debts, while Chapter 13 allows individuals to create a repayment plan over a specified period of time.
A bankruptcy lawyer can help determine which type is most suitable for your financial situation.
Automatic Stay: Filing for bankruptcy triggers an automatic stay, which halts all collection efforts and legal actions by creditors. This means that creditors cannot pursue wage garnishments, foreclosures, or repossessions while the bankruptcy process is ongoing. The automatic stay provides relief and allows individuals to focus on resolving their financial issues.
Debt Discharge: The main goal of bankruptcy is to obtain a discharge of eligible debts. A discharge eliminates your obligation to repay those debts, providing you with a fresh financial start. However, not all debts can be discharged, such as certain tax debts, student loans, and child support obligations.
Legal Representation: It is highly recommended to work with a bankruptcy attorney throughout the bankruptcy process. They have the knowledge and experience to navigate the complexities of bankruptcy law, ensure you meet all legal requirements, and advocate for your best interests. They will assist with preparing the necessary documents, representing you in court, and negotiating with creditors.