If you are in the middle of the strong financial problem, filing for the bankruptcy might bring you some relief. It can be your only way to come out from the debts and have a fresh financial start. It depends on various factors whether the bankruptcy will be for your best interest. You need to consult a lawyer about deciding whether to file Chapter 7 or Chapter 13. The bankruptcy will have an impact on your credit score for many years. So you must perform a thorough evaluation of the options before filing the insolvency.
Choosing the right chapter
If you want to protect all your property along with exemptions and your income is quite low for meeting the qualification requirements, then you can apply for chapter 7 bankruptcy. Be sure that your debts will be dischargeable in bankruptcy. But according to the Personal bankruptcy lawyer Huntsville, you should apply for Chapter 13 when your income is higher than the qualifying standard for Chapter 7 filing. For saving your house from foreclosure and your vehicle from repossession, you must opt for Chapter 13 filing. You will get the option to pay the alimony or child support money through a repayment plan of three years or five years.
Preventing the creditor’s action
When you fail to pay the debts on time, the creditors will drag you t the courtroom for the money recovery. If the creditor manages to obtain the judgment against you, you will have to face garnishment of wages or will have a lien on the assets. Some creditors can even take action against you without visiting the courtroom. Your student loan giver also belongs to that group. The automatic stay that comes in effect immediately after filing the insolvency can stop most of the collection procedures like the garnishments and the lawsuits.
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