The Various Ways Bankruptcy Courts Help In Coping With Financial Difficulties
Various careless acts can lead to a severe debt situation. For example, a company or organization can get into a debt crisis by spending a huge amount of money for the growth of the company. Again, casual use of credit cards or a careless habit of taking continuous loans without bothering about the future can also result in outrageous debt burdens. Debt situations can be highly disturbing and difficult to deal with unless you have adequate information and knowledge.
In order to cope with financial difficulties it is advisable to consult experienced and knowledgeable attorney who can understand your situation and offer you help and advice accordingly. Bankruptcy is one of the various debt solutions that can help individuals and organizations under the severe debt burden cope with the crisis. While most people may want to avoid filing for bankruptcy due to the various negative verdicts associated with it, it can nevertheless prove to be one of the best options that can help you deal with severe monetary problems. An expert attorney can however help you to appropriately understand the various advantages and disadvantages involved in bankruptcy filing and how it can actually help you. Let us discuss in brief the various ways in which a bankruptcy court can help in dealing with the stress and confusion related to a debt situation:
Relief from Harassment: The moment you file for bankruptcy, the court forbids your creditors from communicating with you and making any kind of collection attempts. This provides an instant relief from the constant phone calls, messages and other disturbances caused by the creditors. Once you are declared bankrupt by the court, your lenders are only allowed to contact the court for any queries or issues.
Helps Against Foreclosure: Bankruptcy filing involves an automatic stay, which is a court order used to prevent your mortgaged property from getting foreclosed by your creditors. The moment you file for bankruptcy, the automatic stay gets activated, saving your property from being sold. Based on the type of bankruptcy you choose, the automatic stay can either be permanent or for a definite period of time.
Protects your Assets: In chapter 7 bankruptcy, your non-exempt assets are seized by the court in order to make debt payments to the creditors. However, there are various provisions made by the bankruptcy court that enables an individual to retain many of their valuable assets, including jewelry, clothing, furniture, inexpensive vehicles, insurance, pension funds, household items and many more.
Enables for a New Start: The moment you file for bankruptcy, the court closes all your bank accounts and credit cards. Though this can be overly confusing and frightening, it nevertheless allows for a fresh start clearing all your past financial records.
Allowance to File Frequently: The court does not put any kind of prohibitions on bankruptcy filing for individuals who have already filed for it once before. An individual is allowed to file for bankruptcy as many times as they need to. However, in some forms of bankruptcy like chapter 7 bankruptcy, there's a need to maintain a gap of at least 8 years between two successive filings.
In order to cope with financial difficulties it is advisable to consult experienced and knowledgeable attorney who can understand your situation and offer you help and advice accordingly. Bankruptcy is one of the various debt solutions that can help individuals and organizations under the severe debt burden cope with the crisis. While most people may want to avoid filing for bankruptcy due to the various negative verdicts associated with it, it can nevertheless prove to be one of the best options that can help you deal with severe monetary problems. An expert attorney can however help you to appropriately understand the various advantages and disadvantages involved in bankruptcy filing and how it can actually help you. Let us discuss in brief the various ways in which a bankruptcy court can help in dealing with the stress and confusion related to a debt situation:
Relief from Harassment: The moment you file for bankruptcy, the court forbids your creditors from communicating with you and making any kind of collection attempts. This provides an instant relief from the constant phone calls, messages and other disturbances caused by the creditors. Once you are declared bankrupt by the court, your lenders are only allowed to contact the court for any queries or issues.
Helps Against Foreclosure: Bankruptcy filing involves an automatic stay, which is a court order used to prevent your mortgaged property from getting foreclosed by your creditors. The moment you file for bankruptcy, the automatic stay gets activated, saving your property from being sold. Based on the type of bankruptcy you choose, the automatic stay can either be permanent or for a definite period of time.
Protects your Assets: In chapter 7 bankruptcy, your non-exempt assets are seized by the court in order to make debt payments to the creditors. However, there are various provisions made by the bankruptcy court that enables an individual to retain many of their valuable assets, including jewelry, clothing, furniture, inexpensive vehicles, insurance, pension funds, household items and many more.
Enables for a New Start: The moment you file for bankruptcy, the court closes all your bank accounts and credit cards. Though this can be overly confusing and frightening, it nevertheless allows for a fresh start clearing all your past financial records.
Allowance to File Frequently: The court does not put any kind of prohibitions on bankruptcy filing for individuals who have already filed for it once before. An individual is allowed to file for bankruptcy as many times as they need to. However, in some forms of bankruptcy like chapter 7 bankruptcy, there's a need to maintain a gap of at least 8 years between two successive filings.