For those facing a financial crisis that includes debts that have grown and may feel out of control, but have a stable and reliable source of income, one of the personal bankruptcy options that are available may be able to help. Chapter 13 bankruptcy is a personal bankruptcy option that allows the filing party, with a reliable source of income, to reorganize their debts and repay them over time.
This blog recently discussed some of the benefits of an automatic stay in bankruptcy. The automatic stay is an important part of any bankruptcy filing to understand because it prevents creditor collection actions during the bankruptcy process and can help protect the filing party and provide a little breathing room for the filing party facing overwhelming debt.
As someone who is struggling to keep up with your finances, you may be exploring your options and trying to determine which one is best for getting back on your feet. You may know that bankruptcy is one method many people struggling to stay afloat financially choose to get their financial lives back on track, but you may have questions or concerns about the process. More specifically, you may want to move forward with filing for bankruptcy, but you may be hesitant to do so because you fear it may cause you to lose your home.
The bankruptcy discharge is an important part of the bankruptcy process which makes it important for a party filing for bankruptcy to understand. In essence, the bankruptcy discharge is the part of the bankruptcy process that provides debt relief and a fresh financial start to the party seeking personal bankruptcy protection.
Regardless of what type of personal bankruptcy the filing party selects, the automatic stay is an important part of the bankruptcy process for them to understand. Both Chapter 7 and Chapter 13 personal bankruptcy protections trigger an automatic stay of collection actions which can be helpful to struggling consumers.