Top Benefits of Consumer Bankruptcy

During the holiday season and in the weeks and months that follow, many Americans struggle with debt. Consumer debt can be extremely difficult to manage, especially when your income and assets are insufficient to allow you to get out of debt. Making the minimum monthly payments on credit cards and other bills can lead to increasingly more debt and more anxiety. Consumer bankruptcy may be able to help. If you are considering consumer bankruptcy, one of our dedicated Oak Park bankruptcy lawyers can speak with you today about your circumstances and your eligibility for Chapter 7 or Chapter 13 bankruptcy. In the meantime, the following are some of the top benefits of Chapter 7 and Chapter 13 bankruptcy.

Debt Collectors and Debt Lawsuits Must Stop

One of the great benefits of consumer bankruptcy that applies as soon as you file your bankruptcy petition is the automatic stay. Under U.S. bankruptcy law, the automatic stay prevents any additional action from being taken to collect your debts. Accordingly, debt collectors are not allowed to continue contacting you to try to recoup any money you owe, and debt collectors or creditors cannot file a lawsuit against you or move forward with an existing lawsuit. In addition, creditors or debt collectors cannot take any additional debt collection actions, such as attempting to garnish your wages or your bank accounts.

In short, the automatic stay protects you from any additional debt collection actions or activities. The automatic stay applies to both Chapter 7 and Chapter 13 bankruptcy cases.

Discharge Debt and Get a Fresh Start with Chapter 7 Bankruptcy

One of the primary benefits of Chapter 7 bankruptcy is that it allows debtors to have eligible debts discharged and ultimately allows those debtors to get a fresh financial start. Once you go through the Chapter 7 bankruptcy process, you can begin rebuilding your credit without having to worry about repaying debt owed to creditors.

Stop a Foreclosure and Keep Your Home with Chapter 13 Bankruptcy

One of the key benefits of a Chapter 13 bankruptcy is that it can stop the foreclosure process from happening and can let you remain in your home. Due to the automatic stay, as soon as you file for Chapter 13 bankruptcy, your lender cannot initiate or move forward on a foreclosure. In addition to avoiding foreclosure (which will also happen with the automatic stay in a Chapter 7 bankruptcy case), you can also get caught up on your mortgage payments. The debt reorganization in a Chapter 13 bankruptcy case gives debtors a chance to get back on track with their lender and to keep their home.

Seek Advice from an Oak Park Bankruptcy Lawyer

Do you have questions about consumer bankruptcy, or do you want to learn more about the ways Chapter 7 or Chapter 13 bankruptcy may be able to help you? Do not hesitate to get in touch with one of the experienced Oak Park bankruptcy attorneys at our firm. We have years of experience serving consumers in Illinois, and we can talk with you today about your bankruptcy plans. Contact the Emerson Law Firm for more information.



See Related Blog Posts:

Consumer Bankruptcy and the Holidays: Things to Know

What are the Differences Between Debt Settlement and Bankruptcy?

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