It is common for people who are struggling financially to try to avoid filing for bankruptcy protection. However, there are certain situations that may necessitate a Chapter 7 or Chapter 13 filing. While no two cases are the same, some of the primary reasons consumers file for bankruptcy include:
- Divorce. When a married couple goes through divorce, it is costly for both parties. You will have to face your share of the marital debt, plus any expenses related to moving or child support. If this unexpected liability for debt after a divorce is overwhelming, filing a personal bankruptcy can help you obtain the relief you need.
- Foreclosure. When you are past due on your mortgage loan and you are facing foreclosure of your home, a Chapter 7 or Chapter 13 can briefly or even permanently halt the foreclosure.
- Asset seizures. When you have a secured loan, it means that you have pledged an asset as collateral for the loan. It also means that your creditor has the right to repossess the collateral if you default on the loan. Filing a bankruptcy can stop any pending asset seizures. If you have a car loan, you may also be allowed to lower your vehicle payment by adjusting the amount to be paid to your lender down to the value of the car.
- Collection efforts. The automatic stay goes into effect as soon as you file a bankruptcy case. The stay prohibits creditors from taking any further collection efforts against you which includes stopping calls from debt collectors, garnishments of your wages or bank accounts, and collection lawsuits. You may even be able to discharge the debt underlying the collection activity.
- Unsecured debt. If you are facing a devastating amount of credit card debt or medical bills, you typically can eliminate this type of debt in your bankruptcy filing.
Filing a bankruptcy case is the most comprehensive means for dealing with all of your creditors and your debt at one time. As a result, when you emerge from your Chapter 7 or Chapter 13 case, you will have true relief from your debt.
If you are considering filing for bankruptcy protection, let us help. We understand how important your bankruptcy case is to you, and we will handle it with the discretion and dedication that have become our calling cards. Contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC today by calling 414-377-0518. Like us on Facebook.