Urgent Alert for Businesses: Avoid Penalties, Stay Compliant with New Corporate Transparency Act
BOZEMAN OFFICE 406-582-8822 HELENA OFFICE 406-449-4829
GET HELP NOW!
Urgent Alert for Businesses: Avoid Penalties, Stay Compliant with New Corporate Transparency Act

Blog

What Does Bankruptcy Do?

Posted on April 13th, 2022

Bankruptcy Attorney

Bankruptcy is often something looked down upon, but in certain situations it could be the best option. If you’re in a tough financial situation with creditors coming after you left and right, you could be stressing. Fortunately, a bankruptcy lawyer may be able to help. If you do decide to file bankruptcy, what does it do for your situation?

Stopping the Creditor Harassment

Being harassed by creditors is not only stressful but could be illegal depending on how the creditor goes about it. As a professional from The Law Offices of Neil Crane can explain, while you wait for your case to play out, filing for bankruptcy ensures the creditor can’t harass you anymore. There is an automatic stay on your case that makes creditor calls, lawsuits, wage garnishments and other similar actions get put on hold. The only exceptions are support payments and criminal cases.

Stopping Evictions

If you are facing eviction, foreclosure or repossession, filing for bankruptcy will put these things on hold as well. This doesn’t mean you won’t be evicted, foreclosed on or have your property repossessed, but it does mean you don’t have to deal with it right this moment. These temporary orders will help you get on your feet so you can hopefully make the payments necessary to stay put. 

In some states, if a landlord already has an eviction judgment filed, it is not affected by your bankruptcy filing. If you are unable to bring your loans current during the bankruptcy process, you could still be foreclosed on or have your car or home repossessed after the automatic stay is lifted. If you file Chapter 13, there’s a possibility you’ll still be able to keep your home and car.

Wiping Out Unsecured Debts

There are several types of debts that are considered unsecured. For example, credit card debt, utility payments, medical bills, gym contracts and personal loans most often fall under that category. If you have unsecured debts, bankruptcy typically wipes them out so you don’t owe payment on them anymore. If you have a secured credit card, however, it wouldn’t apply and you would have to return the purchased items to pay the creditor back.

Bankruptcy isn’t going to solve all of your problems. You’ll still need to figure out how to keep yourself from getting in the same situation again, but there are some benefits of filing for bankruptcy as well. Getting your attorney involved can be a great way to understand the beneficial things that can happen. Contact an attorney today to find out what those are, such as a bankruptcy attorney

CONTACT US

Fill out the form below to get in touch with our legal team or call Bozeman office at (406) 582-8822 or our Helena office at (406) 449-4829 to talk to someone right away.

Silverman Law Office - Bozeman

504 W. Main St.

Bozeman, MT 59715

Get Directions
406-582-8822

Silverman Law Office - Helena

2620 Colonial Drive

Helena, MT 59601

Get Directions
406-449-4829