Bankruptcy may be the fastest and easiest way to deal with your debt problems. If you do not have a better way to handle your debt, bankruptcy can give you protection from your creditors. Bankruptcy is a legal proceeding where you will want to get professional help to deal with the complicated rules and paperwork.
The automatic stay that takes effect when you file your paperwork will temporarily stop creditors from taking any action against you except through the bankruptcy process. Utility shut-off, repossessions, foreclosures, and lawsuits will be immediately stopped.
In most cases, your property will be protected from sale due to bankruptcy exemptions. You must continue to make payments on your secured loans for your homes and vehicles if you want to continue to use the collateral. Bankruptcy permanently eliminates your legal obligation to pay most types of debt. When you successfully complete your bankruptcy, your eligible debt will be discharged.
Most people filing bankruptcy are already late on their bills, and their credit record is damaged. Filing bankruptcy will not make your credit record any worse. Bankruptcy can remain on your credit report for ten years, while default payments on your report can last up to seven years.
If you would like more information about bankruptcy or debt relief contact an Elk Grove bankruptcy attorney.