Bankruptcy Lawyer Northeast Philadelphia
Filing for Bankruptcy is a last resort. No one sets out in life to file for Bankruptcy. However, filing for Bankruptcy is sometimes the best path forward to restore your credit and get a fresh start. If you are faced with garnishments, threats of repossession, a Foreclosure or a Sheriff’s sale, those are indications that you may benefit from speaking to a Bankruptcy Lawyer. When deciding to file for Bankruptcy, individuals should ask themselves a simple question: what are my alternatives?
· If your debt has defaulted, and you do not have sufficient income to cover anything beyond minimum payments to unsecured creditors, it may be time to file. Defaulted debt is accelerated, which means that you can only get rid of it if you pay it in full. If you are unable to even make payments on a debt, paying it in full is not realistic, in which case you should speak to a Bankruptcy Lawyer ,
· Upon filing for Bankruptcy, you are accorded an automatic stay, which is the Bankruptcy Protection against creditors. The automatic stay will protect you against a foreclosure or Sheriff’s sale. More importantly, in Chapter 13, you can retain your house so long as you can afford to pay the mortgage and a monthly payment to a Trustee.
· The automatic stay will also prevent creditors from contacting you. They receive a letter from the Bankruptcy court stating that you filed for Bankruptcy. If any creditors continue collection activities once they receive notice of your Bankruptcy, they may be liable to be held in contempt of court.
· Garnishments end upon filing for Bankruptcy. Moreover, when you decide to file, you are required to stop payments to unsecured creditors. That may free up money and help you deal with your stressful situation a little easier.
· You should be aware that Bankruptcy will remain on your credit report for several years. However, with the help of a competent credit repair professional, you will be back on your feet much faster than if you hadn’t filed.
Lastly, you should be aware that Bankruptcy will not discharge certain types of debts such as student loans, domestic support obligations, criminal restitutions and fines, or recent tax arrears. However, Chapter 13 may help defray some of those debts by stretching the payments over 5 years. Nothing stated here is legal advice, and you should not construe it as such. You should consult a competent Bankruptcy Lawyer to assess your particular situation