Bankruptcy Attorney Litchfield Park
If you are struggling with personal debts that are making life more difficult, there’s no risk in meeting with a Litchfield Park bankruptcy attorney about potentially filing for bankruptcy. If your debts vastly outnumber your earnings and you don’t see that changing in the near future, then it’s worth considering the benefits that bankruptcy could provide for you. Especially in recent years, more people are suffering financially due to the pandemic and other factors in the economy. Eventually, it can get to a point where making ends meet feels impossible. But thankfully, bankruptcy is available to those who are in great financial need of a restart. After reading the benefits of bankruptcy below, feel free to reach out to our legal team at Wright Law Offices for a consultation on your specific circumstances.
Prevents Foreclosure and Repossession
After you file for Chapter 13 or Chapter 7 bankruptcy, an automatic stay will be enforced by the court that halts all collection efforts against you. The entails vehicle repossession, mortgage foreclosure, and other property repossession. Many debtors find immense relief in getting time away from pestering creditors so they can actually reassess their financial situation. Filing for bankruptcy when you are worried about losing your home or car can be the choice that changes your path moving forward.
Halts Wage Garnishment
When filing for bankruptcy, collection efforts stop. Depending on the chapter you file for, your eligible debts will get discharged or restructured in a repayment plan. Wage garnishments will be stopped, along with other aggressive tactics debt collectors use to get payments. Creditors will no longer be able to contact you by calling, sending letters, etc. If you have filed for bankruptcy and are still getting bothered by debt collectors, this is a violation of your bankruptcy rights and we urge you to contact a Litchfield Park bankruptcy attorney as soon as possible so we can intervene.
Fixing Your Credit
It’s important to note that filing for bankruptcy will result in a temporary hit to your credit report. The bankruptcy will appear on your report and your credit score is likely to go down. How much your score goes down will depend on what your score is currently. If it is already on the lower end, then it may not affect it as much. But if you have a middle to high score, it’s probably going to decrease significantly. A bankruptcy will disappear from a credit report after about a decade, so it’s imperative that you do not rush into filing for bankruptcy and that you are aware of the downsides that come with it.
Help From an Attorney
Dealing with debts that are making your ability to survive financially difficult can be alleviated by filing for bankruptcy. But as a Litchfield Park bankruptcy attorney suggests, there are pros and cons to consider, and different chapters will have different impacts. If you have questions about filing for bankruptcy, our team at Wright Law Offices is ready to take your call.