What advantages are there to filing bankruptcy?

Mon, 16 Nov 2009 13:59:53 -0500

The situation is all too common these days. You cannot pay your debts as they come due. Your credit card debt soars. You start to screen your phone calls to avoid unpleasant demands for payment. Your paycheck is garnished. When the common warning signs of overwhelming debt begin to rear their heads, a debtor must ask himself whether or not bankruptcy is a viable option. So what are some of the advantages of filing bankruptcy? Creditors have a number of tools at their disposal. Their primary weapon is the telephone and they can end up calling friends, family and your workplace. You may receive threatening letters or electronic communications. Your paycheck may come and, to your dismay, is woefully thin, having been garnished by a creditor. You could receive notifications that a property is being seized. Filing bankruptcy stops collection efforts against you. Even creditors who received a judgment against you must cease all actions once a Chapter 7 or Chapter 13 bankruptcy proceeding is filed. Once an Automatic Stay in Bankruptcy is imposed by the court, a creditor must stop all actions even if they previously had the right to repossess property. **End Summary** Topics: Virginia bankruptcy lawyer]]>]]> About the Author: ]]> Finally, special circumstances exist for Chapter 7 and Chapter 13 bankruptcies that can be discussed with qualified counsel. For example, a Virginia bankruptcy lawyer might advise a client to seek Chapter 13 in the case of a traumatic setback such as an injury or job loss where the client now had resumed working. The advantage in this case is a single monthly payment paid to a court-appointed trustee rather than multiple payments. For more information, you can visit http://www.louisnuzzoattorney

Articles by Louis Nuzzo on ArticleSnatch.com

What advantages are there to filing bankruptcy?