Below represents 3 common reasons you may benefit from filing for bankruptcy sooner rather than later:
1. Stop Foreclosure on Your Home
Filing for bankruptcy will stop the foreclosure process the moment your bankruptcy documents are filed. You will be notified by your bank if they plan on foreclosing on your home. A deadline will be given you to either bring your mortgage current or they will foreclose on a specific date.
2. Stop Your Car from Being Repossessed
If your lender is in the process of repossessing your car, a bankruptcy can help you to stop the repossession and even get your car back after repossession. Chapter 7 and Chapter 13 bankruptcy will both allow you to catch up on your loan payments.
3. Stop a Lawsuit
Bankruptcy will delay or stop a credit card lawsuit. An automatic stay goes into effect that prohibits most creditors from trying to collect debts from you. The effect of the bankruptcy on the lawsuit and debt depends on the claim and type of bankruptcy. If you are being sued by your creditors, filing for bankruptcy relief may help.