Why Bankruptcy Is A Good Option
Why Bankruptcy Is A Good Option
Filing for bankruptcy is a great option to eliminate debts and begin afresh. It provides certain protections against creditors. For example, it removes certain rights that “secured” creditors have on collateral, such as a car loan or home mortgage. These creditors can’t keep the collateral if you fail to make payments. Bankruptcy also discharges certain special debts.
Exemption laws protect clothing, appliances, jewelry, and even your car
In bankruptcy, your car can be exempt from being seized by the court. The exemption law allows you to keep your car and any other items worth less than a certain amount. The value is not the original cost of the vehicle, but the value of the vehicle today. This is the value minus any debt.
If you’re planning to file for bankruptcy, you’ll want to understand how exemption laws work. These laws protect most of your property, including your car, jewelry, and appliances. Many of these items can be exempt from liquidation, including the clothes in your closet.
Automatic stay protects you from creditors
In bankruptcy, the automatic stay is a legal protection from creditors that prevents collection actions and harassment. The stay prohibits creditors from taking any formal or informal actions against the debtor after the bankruptcy filing. This includes wage garnishments and phone calls. However, it’s important to remember that this protection is temporary and can be lifted in some circumstances. If you feel that a creditor is violating the stay, you can report it to the court. Your bankruptcy lawyer will help you decide what to do next.
In bankruptcy, you’ll want to keep track of all communications from creditors. When you receive emails from creditors or phone calls from debt collectors, make sure you contact your bankruptcy lawyer immediately. Although many of these violations of the automatic stay are unintentional and can be resolved by a simple phone call, others are more intrusive and can cause undue stress.
If you need an Personal Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676–5506
https://www.ascentlawfirm.com
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