If you can pay your bills when they're due, and you are not back of payments. It's a good idea to continue with payment.
Yes, bankruptcy filing is only for you if you are in debt. Further, your debts are significantly more than your assets and income, bankruptcy might be your best option.
Filing bankruptcy will adversely affect your credit but it gives instant relief from creditors harassment. If you just want to stop this type of harassment, you can use the Fair Debt Collection Practices Act, and in some cases, state law, to get creditors and collection agencies to stop harassing you. However, bankruptcy should be considered a last resort.
The biggest advantage of bankruptcy filing is that Chapter 7 or Chapter 13 bankruptcy initiates an automatic stay. The Automatic Stay is an order entered when you file for bankruptcy relief stopping all creditors from taking any further action to collect. Which means most creditors cease all collection activities. Once you file a bankruptcy case, creditors and collection agencies must stop contacting you by phone and mail. If a creditor knowingly violates this stay it can become liable for any damages caused. They even cannot file or maintain lawsuits against you to recover most outstanding debts. Creditors are also prohibited, in certain cases, from filing liens against you or garnishing your wages.
The automatic stay also temporarily stop foreclosure proceedings, utility shut-offs, and evictions. However, the stay will likely not apply to certain proceedings, such as legal actions to collect child support or alimony, and certain IRS matters. In some cases, creditors may also ask the court to lift the stay.
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The decision to file for bankruptcy involves many considerations that you might not be aware of until it's too late. BK Chapter Forum has a wealth of resources at your fingertips to get you started on your journey through bankruptcy. While it may seem difficult now, perhaps unbearable, bankruptcy can be a good thing.
Whether you file for Chapter 7 or Chapter 13, you’re well on your way toward getting out of debt and putting your best foot forward.
Learn how an experienced bankruptcy lawyer can help guide you through the process and ensure that your bankruptcy solves your financial problems. Choosing the right bankruptcy attorney to navigate you through the complexities of your case is important.
DISCLAIMER: The above stated information should not be relied upon as legal authority nor should it be used as a substitute for reference to the U.S. Bankruptcy Code. Sole purpose of this website is debtor education towards bankruptcy. The information provided on this website may supplement, not substitute, for the advice of competent legal counsel. Please be advised to consult a bankruptcy attorney for legal advice. For additional information, please refer to the United States Bankruptcy Code (title 11, United States Code), the Federal Rules of Bankruptcy Procedure (Bankruptcy Rules), and the Local Rules for the respective States Bankruptcy Court.