Bankruptcy- Have a concept of it
In the legal field, bankruptcy is a process, helping you to manage the increasing debts. The debt may be for your failure to pay for the medical bill and credit card. The most common option for filing bankruptcy are- Chapter 7 and 13.
Most of us have a question- Will I get value by filing the bankruptcy? We have now talked about some questions. This will help you to find the answer of your query.
Do you have the ability to pay the debt, not included in bankruptcy?
You have to know the debt types that you think of solving by filing a case. You may assess your own ability to repay other debts. For instance, when it is a credit card debt, you have to know your affordability for repaying it. While you earn much amount of money for paying back this debt, you may consolidate it into a loan.
When you cannot repay the debts in any way, bankruptcy can be the best option to you. However, some debts may not be dischargeable by filing bankruptcy. You can know about them from your bankruptcy attorneys in Tempe Arizona.
Are your creditors causing distress to you?
When you cannot pay off credit cards or other loans, the creditors will do various things for debt collection. They will go against you. Based on your asset and earnings, you can find wage garnishment. While the creditors sue you, bankruptcy can delay or stop your lawsuit. After getting the discharge of debt, you will find the dismissal of pending lawsuit.
Is there a risk of repossession or foreclosure?
The major reason behind filing bankruptcy case is to protect the assets, including the car and house. Repossession or foreclosure is a risk to your house or vehicle. While you have not repaid your home loan or car loan, the lender can take back your property.
In most of the instances, the discharge may not help you in preventing the secured lien of the creditor. However, you can rely on Chapter 13 by having the help from bankruptcy attorneys in Tempe Arizona. It will delay the repossession or foreclosure process.
Now, let us tell you how bankruptcy is helpful to you-
â€¢ Restructuring of debt
â€¢ Stopping calls from your creditors and debt collectors
â€¢ Keeping you away from wage garnishments
â€¢ Preventing the legal steps and lawsuits against you
â€¢ Secure your property
There are also negative sides of bankruptcy.
â€¢ The legal bills and student loans are not dischargeable
â€¢ Your credit report will show this bankruptcy for ten years
â€¢ You have to pay the charge for filing and credit counseling
The Bankruptcy attorney in Tempe AZ knows the right solution for your financial issues. While you have asked you to file bankruptcy, you must not delay to do it. When you are not able to repay the loan with 4 to 5 years, you can choose bankruptcy.
Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/493910
Article Added on Monday, April 1, 2019
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