There are six bankruptcy chapters to choose from, and as your Fairfield, CT bankruptcy lawyer would forewarn, it’s imperative that you choose the best one for you. Each bankruptcy chapter is intended for an individual and/or company under specific circumstances. The bankruptcy types include Chapter 9 (municipality debt adjustment), Chapter 7 (liquidation), Chapter 13 (debt adjustments for individuals with income), Chapter 11 (reorganization), Chapter 15 (cross-border cases), and Chapter 12 (debt adjustments for family fishermen or farmers with income). If you have questions about which bankruptcy chapter to file for please contact our team at The Law Offices of Neil Crane.
Fighting Shutoffs, Foreclosure, Repossession
When you file for bankruptcy, specifically Chapter 13 or Chapter 7, the court will issue an automatic stay. What this does is halts any and all collection efforts against you. This includes property repossession, auto repossession, and mortgage foreclosure. You can take this time to get current with utility payments, your mortgage, and deal with other debts. You can get a second chance to make your payments currents and eliminate any covered debts.
Wage Garnishment and Other Collections
After filing for bankruptcy, all collection efforts have to stop. Your eligible debts can be discharged under Chapter 7, or you may choose to partake in a repayment plan through Chapter 13 or Chapter 11 bankruptcy. Bank account levies and wage garnishments will be stopped, and debt collectors are no longer able to legally call or send you letters. A Fairfield bankruptcy lawyer knows that creditors and collectors can be relentless in their effort to get payments from you. Bankruptcy filers can finally get some relief as they reassess their situation and work towards a solution.
Impacts To Your Credit Score and Report
It is important for bankruptcy filers to know that their credit is going to be impacted after filing for bankruptcy. A bankruptcy status may remain on the credit report for about seven to ten years. If your credit score is already low, then it may not change too much. But the higher your score is, the more likely it is to go down by a greater degree. However, the benefits of bankruptcy could still outweigh the drawback of having your credit score and report be affected. Credit can be improved overtime, and filing for bankruptcy can ultimately get you back on track.
The Law Offices of Neil Crane
Dealing with financial hardship is something no one should have to worry about. But unfortunately, the demands and costs of living have become overwhelming for many people, to where they consider filing for bankruptcy. A Fairfield bankruptcy lawyer understands the stress you may be under, and wants to set you on a path to more stable financial wellness into the future. It is possible to recover from your setbacks. The time to give up hope is not now, let us consult with you further and then offer advice from there. The team at The Law Offices of Neil Crane are ready to support.