How Can a Bankruptcy Provide a Reputable Defense against Lawsuits?
Filing For Bankruptcy Relief Can Stop Creditor Harassment In Arizona
Most debt problems result in a lot of harassing phone calls and emails. You get to the point that you don’t want to answer your phone anymore because you know that it might be a creditor. You wish you could just ignore it and make it go away, but the calls just don’t stop. You start to think about whether you should file for bankruptcy.
If you don’t come to the decision to file for bankruptcy early enough, the calls might turn into something more. You might actually be subject to a lawsuit, a foreclosure, or a repossession. You might think that filing for bankruptcy is no longer an option at that point. But it is. Here’s how filing for bankruptcy can prove to be a good defense against a lawsuit or other legal proceeding:
The Automatic Stay
When you file for bankruptcy, you trigger an automatic stay. Under the automatic stay, your creditors are prohibited from contacting you about your debt or from taking any action against you. The automatic stay will not keep creditors at bay forever, but it will put an immediate end to any action against you. You’ll be able to breathe a sigh of relief from the constant harassment, and you’ll be able to work with your Gilbert bankruptcy attorney and other advisers to figure out a way forward if you are facing other legal action.
Any lawsuit that is pending against you will be put on hold with the automatic stay. However, if the debt is not discharged in the bankruptcy, the lawsuit can resume. Your creditor can also petition the bankruptcy court to continue with its lawsuit, and the court may grant permission. Talk to your bankruptcy attorney in Gilbert about your options.
Chapter 7 Discharge
If you qualify for Chapter 7 bankruptcy in Mesa, you may be able to put an end to any lawsuit with a Chapter 7 discharge. Chapter 7 allows you to discharge all unsecured debts, such as credit cards, personal loans, and medical bills. It covers basically anything that is not backed by an asset, such as your home or your car.
If one of your unsecured creditors is suing you, you may be able to resolve the problem by filing for bankruptcy. If your debt is discharged in a Chapter 7 bankruptcy, the creditor will have no more legal footing to sue you. You will be freed of your obligation for the debt.
Chapter 13 Restructuring
If you don’t quality for Chapter 7 bankruptcy or you have debts that can not be included in Chapter 7, you may want to consider Chapter 13 bankruptcy. Under this bankruptcy filing, your debts would be restructured into a repayment plan that you can afford. At the end of the repayment plan, which is three to five months, some of your remaining debts may be discharged.
Chapter 13 bankruptcy may be able to help you save your home from foreclosure. The amount you owe can be included in the repayment plan, giving you an opportunity to catch up on the payments and save your home.
Always talk to a Gilbert bankruptcy lawyer about the kind of debt you have and the potential legal proceedings you are facing to learn how bankruptcy may be able to help. Your attorney can help you decide whether Chapter 7 bankruptcy or Chapter 13 bankruptcy will get you the best results, including the maximum debt relief. Your attorney will guide you through your legal options to help you get the best outcome possible.
Call My AZ Lawyers today to schedule a consultation with an experienced Arizona bankruptcy attorney to learn more about your options for debt relief through bankruptcy. Our attorneys represent clients seeking protection through both Chapter 7 bankruptcy and Chapter 13 bankruptcy, and after a thorough review of your finances, we’ll help you decide which will give you the most benefits. We can help you get relief from creditor harassment and possibly even from legal action. We represent clients throughout the Phoenix area. Call My AZ Lawyers today to learn more about how bankruptcy may be able to help you get relief from debt or put an end to a lawsuit or other legal action against you.
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