When you’re behind on your loans and struggling to make ends meet, you might feel swamped by creditors looking for their money. In some cases, it can be impossible to get back to your normal payment schedule, and bankruptcy might be necessary to protect your interests.
But what happens after bankruptcy? Before you begin the process, you’ll need to know what will happen to your credit and your debts.
Fortunately, Rowdy G. Williams Law Firm can guide you. Starting with a free consultation, we’ll outline what bankruptcy will do for you, how to file, and what we can do to eliminate your debts and give you a fresh start.
The Creditors Are Stopped
If you’re considering bankruptcy, you’ve likely already been dealing with harassment from creditors, who might threaten wage garnishment, repossession, and other tactics to get what they’re owed. This can be stressful for you and your family.
Fortunately, when you file for bankruptcy, all debt-collection efforts will be temporarily stopped. During this time, creditors cannot take action against you for your debts. While this isn’t permanent, and some actions can still be taken, this will stop the messages so you can focus on your bankruptcy petition and getting approval for your debt-elimination plan.
Your Debts Are Restructured or Eliminated
The goal of bankruptcy is to remove all debt, but this requires a plan that works for your situation. You’ll need to work with a lawyer to make a plan that will either eliminate your debt all at once or restructure that debt to pay it off over time.
Chapter 7 bankruptcy is an option for those looking to completely end their debt and start fresh. Debtors looking at this option will liquidate certain assets, and the money will be used to pay the creditors. This will remove all liability for your debts, but you will lose property from this type of bankruptcy, including the following:
- Second homes
- Expensive collections
- Saved cash
Alternatively, you can protect your property by filing a Chapter 13 plan. While this may take more time, you’ll keep your property and will instead pay off your debts within three to five years through a structured budget, which a lawyer can help you create.
If you’re not sure which plan is right for you, a lawyer can review your case and help you decide how to get out of debt.
Talk to a Terre Haute Bankruptcy Lawyer
Debt can be overwhelming, and when you don’t know what happens after bankruptcy, choosing that route can feel like a big step. Fortunately, you don’t have to file your petition for bankruptcy alone. The team at Rowdy G. Williams Law Firm can help you choose a plan, build a budget for repayment, and get your bankruptcy petition approved.
If the debtors are becoming a bigger problem every day, call us for help. We can be reached at 1-812-232-7400 or via the contact form below.