Understand what happens immediately after a bankruptcy filing

On behalf of Furr & Cohen, P.A. posted in chapter 7 on Wednesday, January 20, 2016.

Making the decision to file for bankruptcy is one that doesn’t come lightly for anyone. When you are facing the reality that there isn’t enough money available to live and cover your debts, you might decide that you don’t have an alternative. We know that you probably have some questions about the bankruptcy process. We can help you get answers to those questions.

One of the first decisions you have to make is what form of bankruptcy you will file. Chapter 7 bankruptcy is one that dissolves all qualified debts. In exchange, you will have to hand over certain assets that will be sold to satisfy some of the debts. Chapter 13 bankruptcy is one that requires you to enter into a repayment plan. You are able to keep certain assets under this plan, but you will also have to make regular payments to satisfy debts.

Once you decide on the type of bankruptcy to file, you can take the necessary steps to get the bankruptcy filed. When you file for bankruptcy, you will get an automatic stay, which can stop harassing phone calls. An automatic stay stops certain collection efforts from the creditors that are listed in the bankruptcy. It can stop wage garnishments, pause utility shut-offs and postpone eviction proceedings. Of course, this shouldn’t be the only reason you file for bankruptcy.

If you are considering a Chapter 7 bankruptcy, we can help you to learn if you qualify. We can also help you to learn about the responsibilities you have during the bankruptcy proceedings, including education and counseling requirements.