The reasons to declare bankruptcy varies from person to person, but many people cite the punitive measures taken by creditors as a prime issue in their decision. It's easy to see why – creditors can make those who don't pay their bills on time pay in many other ways. The phone calls and letters are just the start for some who are in over their heads in debt and sinking lower each day.
If you have decided that you are going to move forward with the process of filing for bankruptcy, then you need to know what the next steps are that you need to take. This will ensure that the process runs as smoothly as possible.
Gather Your Bills
It is vital that you are taking a copy of each one of your bills to your bankruptcy attorney once you retain him or her.
Although you try to do everything you can to keep your finances in check, there are certain things that are out of your control. One of those being when your company decides to start cutting hours or laying people off. What you thought was a consistent paycheck is now thrown out the window and you are left struggling to figure out how to pay your bills each month. Here is where a Chapter 7 bankruptcy might be able to help you regain control of your finances and put you on the path to financial freedom.
Although Chapter 7 bankruptcy laws automatically protect your car, this will not automatically save it from the clutches of the lender. This is because your car's lender can request the court to lift the stay and reposess the vehicle. The court is likely to grant the petition if the lender can prove that you are not making any attempts to cure your default. Here are three tips to help you maintain the stay on your car's repossession:
Filing for bankruptcy is a big deal. However, it can also help you get your finances in order and allow you to stay in your home. When you file for bankruptcy, the judge puts an automatic stay on your property and assets. This puts a pause on any lawsuits filed against you, specifically by creditors. The best way you can use the automatic stay in a bankruptcy case is to help you keep your home and avoid being evicted.