One of the crucial reasons that individuals file for bankruptcy is to receive relief from their creditors. The initial relief arrives in the form of an automatic stay. The automatic stay goes into effect immediately upon filing for bankruptcy. In general, the stay prohibits collectors from continuing collection activities unless and until the Court gives them permission to continue.
Bankruptcy advertisements often claim to:
The automatic stay, applied when applicable, ceases all of these actions.
Chapter 7 Bankruptcy
Chapter 7 is a “liquidation” bankruptcy. If an individual receives a discharge in their bankruptcy, the Debtor’s personal liability to pay for most of their debt is removed. Therefore, a chapter 7 can bring relief from creditors and resolve the debt issues. However, there are many exceptions, so it is vital to seek an experienced attorney.
Valid reasons to file under chapter 7 include:
- Relief from the collection process when left with no other alternatives
- In order to deal with the debt that has become unmanageable (outside the assistance of bankruptcy)
Whether you have reached the threshold in the above areas is the determining factor for whether or not to file.
Is Bankruptcy Right for You?
Learn whether bankruptcy is the right choice for you. Talk your debt-relief options over with an experienced attorney at the southern New Jersey law firm of John Hargrave and Associates. We offer free confidential consultations. Call 856-547-6500, or contact us online.