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Bankruptcy will wipe out credit card debt, medical bills, and personal loans, but will not eliminate primary obligation debt; things like student loans, child and spousal support, and newer tax debt. Bankruptcy can also stop or delay a home or mortgage foreclosure, stop collection actions, stop garnishments and lawsuits.
Those filing an emergency bankruptcy receive an automatic stay even before completing certain documents. An automatic stay is an injunction prohibiting creditors from collecting debts. If you’re in an emergency situation such as wage garnishment, eviction, or pending repossession filing an emergency bankruptcy may be right for you.
In that case, the bankruptcy court will recommend that you declare Chapter13bankruptcy , which consolidates your debts into a three-to-five-year repayment plan. After you file, the bankruptcy court will appoint a trustee who’s in charge of reviewing your case and for non-protected assets.
Whether you’re facing foreclosure , repossession, wage garnishments, or relentless creditor harassment, our expertise in bankruptcy law can offer the protection and relief you’ve been seeking. One of our firm’s key strengths lies in our comprehensive understanding of both Chapter 7 and Chapter13bankruptcy options.
Debts associated with the medical industry and credit card companies can be bought by aggressive debtcollectors, which can affect your overall quality of life. Certain debts can be discharged entirely when filing Chapter 7 bankruptcy, but not everyone is eligible for Chapter 7 bankruptcy.
Do Bankruptcies Come in Different Types? There are officially six separate categories of bankruptcy , each designated after a specific section of federal bankruptcy law. However, Chapter 7 and Chapter13bankruptcy are the two types of bankruptcy that are most frequently filed.
. • Debt collection cases have claimed an increasing share of the civil docket, making up about 30% of the civil court caseload in the one state where comprehensive data was available. • The dollar value of claims filed annually by debt buyers increased from $6 billion in 1993 to $98 billion in 2013. Filing bankruptcy.
At that point, your cable company sends the bill to a debtcollector. Bankruptcy: Seven or 10 Years Bankruptcies show up in the public records section of credit reports. Chapter 7 bankruptcies may be reported for 10 years from the filing date.
However, before a lawsuit is filed, lenders of unsecured debt will typically hire debtcollectors in an attempt to recover what you owe. If an agreement cannot be reached between the debtor and the debtcollector, the lender will likely file a lawsuit against you. Examples of Unsecured Debts.
However, it is important to note that before bankruptcy is declared, lenders can still come after you to get you to pay off the unsecured debt. They may use collection agencies , or they may sue you (asking the court to garnish wages, take an asset, or put a lien on your home).
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