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byAlma Abell
Personal bankruptcy is one of the most common cases filed in American courts. If you have more debt than you can realistically expect to pay back, you Bankruptcy. The first step in the process is to evaluate your finances and determine if you can pay your bills with some allowances from your creditors. If the answer is no, and you would not be able to get out of debt even with an interest rate reduction or an extended grace period, the next step is to contact a bankruptcy attorney.
During your consultation, your attorney will review your debts and assets. In some situations, you Bankruptcy.
If you Bankruptcies, the petition your attorney files will ask the court to discharge, or eliminate your obligation to pay, your debts. Once your lawyer files the petition, creditors are required by law to cease any collection efforts against you. This includes everything for phone calls or letters demanding payment to lawsuits and wage garnishments.
Some people do not qualify for Chapter 7 due to restrictions in the amount of assets a person can have prior to filing. If you fall into that category, you filing forces creditors to halt collection efforts, including repossession and foreclosure.