A bankruptcy is a legal situation in which a person, company, or some institutions, are unable to pay their debt from their available financial resources. Bankruptcy is one of the cheapest and quickest options to get out of debt by stopping debt collectors and even saving your assets. One of the most compelling benefits of filing for bankruptcy is eliminating debts entirely or at least dramatically reducing them.
Another benefit of filing for bankruptcy is the automatic stay. A provision that the Bankruptcy Code offers as protection between creditors and debtors. This means that debt collectors will be restricted from contacting you to collect on your debt, and from taking any legal action against you. This also includes lawsuits, repossessions, wage garnishments, liens, and even evictions.
An automatic stay can delay foreclosure and property recovery. While the automatic stay is in place, lenders and collectors will not be able to proceed with actions to take your home.
A misconception has always been that when an individual files for bankruptcy, all of their possessions are taken away. What most people don’t know is that the Bankruptcy Code includes exceptions. These are used to exempt a large number of properties from being liquidated. This includes housing, land, vehicles, household items, furniture, clothing, and in some states, even cash.
If you are in a difficult financial situation, filing for bankruptcy could be the light at the end of the tunnel. Contacting a Fort Worth bankruptcy attorney can introduce you to all of your available options.