When a financial crisis hits a Missouri household, stress and anxiety are soon to follow. In some cases, a few cutbacks in spending and updating the budget can help get things back on track. Other situations are more dire, such as if you have received a Notice of Foreclosure in the mail regarding your home mortgage. This is the type of situation where bankruptcy is a useful tool.
If you file for Chapter 7 bankruptcy, it comes with an automatic stay against foreclosure. It also prohibits creditors from hounding you with phone calls or threatening litigation. No one can sue you while you’re navigating the Chapter 7 bankruptcy process. Also, if your wages were being garnished, it would typically come to a halt.
Restructure payments through bankruptcy
Another benefit of bankruptcy (specifically, Chapter 13) is that it provides financial breathing room so that you can continue to pay down debt in a more economically feasible way while you work on restoring solvency. Under the
Chapter 13 program, a repayment plan proposed by the filer, once approved by the court, is overseen by the bankruptcy trustee. Payments are usually reduced for a period of three to five years to help the consumer get back on track financially.
Each program carries its own requirements, which you must be able to meet to be eligible. Bankruptcy doesn’t stay on your credit report forever. Depending on which program you qualify for, it might stay on your report for seven years or a bit longer. By scheduling a consultation with Tarry Law Firm, L.L.C., in Missouri, you can explore your options and determine which course of action best fits your specific financial needs.
