For some people, debt collectors’ calls are too much to bear. From medical bills to credit card debt, these issues can quickly become overwhelming for most people or families who are doing their best to get by financially. A skilled Reaves Law Firm, PLLC, attorney could investigate your situation and explain any available options.
When facing severe financial problems, bankruptcy might be the answer. This process can give you a fresh start while often allowing you to remain in your home. Before you file a petition on your own, discussing your options with a Jackson bankruptcy lawyer is in your best interest.
There are many reasons why seeking the help of a bankruptcy attorney in Jackson could be a good idea. While everyone has reasons for this protection, certain benefits stand out. Some common examples include the following:
As soon as a person files their petition, they are protected by the automatic stay. It takes effect the moment their case is filed, preventing collectors from taking any action on their debt. This will not only end collection calls but also halt repossessions and pause foreclosure proceedings.
While some debts are more difficult to discharge than others, people can often eliminate most of what they owe on their credit cards after discharge. These debts are not tied to specific assets, like a home or vehicle.
Debt collectors cannot call or write and must put any legal actions on hold. Any ongoing litigation filed against the debtor must be paused by the court until permission is granted in the bankruptcy for the lawsuit to proceed. Once the stay is in place, new collection suits are prohibited.
The most important aspect of a discharge is the fresh start a person can receive. Once their debts are paid or discharged, the filer can walk from the process in a much stronger financial position than before.
Generally, two options are available for consumers considering bankruptcy, and a Jackson lawyer could elaborate further. Depending on the circumstances, a person may be able to file under Chapter 7 or Chapter 13 of the bankruptcy code.
Chapter 7 is commonly known as liquidation because it involves a trustee liquidating a creditor’s assets to satisfy their debts before the court discharges what is left over. This usually sounds scarier than it is, as many exceptions allow a person to keep their property throughout this process. From start to finish, this approach can be concluded in as little as six months.
Chapter 13 takes much longer and involves repaying debts along the way. This option is appropriate for anyone who owns too much to qualify for Chapter 7. The debtor will make a five-year plan that involves reasonable payments to creditors. At the end of the process, a person could find themselves caught up on their mortgage while also benefiting from a discharge.
Filing for bankruptcy is a big decision, but you do not have to make it on your own. When you work with a Jackson bankruptcy lawyer, you get helpful guidance every step of the way.
An experienced attorney from Reaves Law Firm, PLLC, could advise you on your options and answer any questions. Call today to schedule a free initial consultation.
