If you’re one of many Tennessee residents who have been struggling financially in recent years, you may also relate to those who have come to a point where their basic attempts to resolve a financial crisis have proved unsuccessful, and you are seeking additional debt relief options. Being in debt can cause much distress in life, especially if creditors are harassing you with phone calls every day or you have fallen behind in mortgage payments and are at risk for foreclosure. An option that has helped many people resolve such issues is Chapter 7 bankruptcy.
When you file for Chapter 7 bankruptcy, your nonexempt assets are sold. The proceeds are then used to pay back your creditors. In the meantime, there are additional benefits to seeking debt relief through this program, one of which is that the petition activates an automatic stay.
What is an automatic stay, and how does it help?
Under U.S. bankruptcy law, an automatic stay is an injunction that prohibits creditors’ attempts to collect debt from a person who has filed a bankruptcy petition. An automatic stay is a provision that also protects you against liens, litigation, wage garnishments, repossessions and other actions until your bankruptcy case has been fully processed. Even if a foreclosure has already begun against your home, filing for bankruptcy may bring the action to a halt.
How to know if Chapter 7 bankruptcy is the best program for you
A lot happens in between deciding to file for bankruptcy and completing an application. One of the first issues you must resolve is determining which bankruptcy options best fit your needs and ultimate financial goals. By requesting a meeting with Richard Banks & Associates in Tennessee, you can seek guidance and recommendations from someone who is well-versed in all aspects of U.S. bankruptcy laws.