Will Filing For Personal Bankruptcy Stop Creditors From Harassing Me?

You've fallen behind on various payments and the bills are piling up on your kitchen table. Now, creditors are ringing your phone around the clock, and you aren't sure how to make them stop. Consider filing for bankruptcy. A bankruptcy filing mandates that all creditors must immediately cease all contact with you. That means no more phone calls, letters or threats of legal action. A successful bankruptcy will prevent creditors from collecting on your debts by discharging your legal obligations to pay.

Though you may be concerned about the judgment of your peers or have reservations regarding the filing process itself, our attorneys want you to know that bankruptcy is a federal law designed to help those in financial hardship. Let us help you hit the reset button. You can work closely with the attorneys of Schneller & Lomenick, P.A., at either our Holly Springs office or Olive Branch location to learn more about the myths and facts of personal bankruptcy today.

Can I File For Bankruptcy And Keep My Home?

Yes. When it comes to personal bankruptcy, there are only two types that will generally concern normal consumers: Chapter 7 and Chapter 13 bankruptcy.

In short, Chapter 7 bankruptcy fully eliminates unsecured debt, such as:

  • Hospital bills
  • Personal loans
  • Check advances
  • Credit card debts
  • Judgments from lawsuits
  • Certain taxes

In most cases, when you file under this chapter of the Bankruptcy Code, you can keep paying secured debts. Debts such as a house or car payment, so you don't have to worry about losing your property.

On the other hand, Chapter 13 bankruptcy, more commonly known as a wage-earner bankruptcy, is for those with a regular income and allows filers to arrange a repayment plan for their debts, if desired. This type of bankruptcy also prevents the foreclosure of your home and repossession of your car or other personal property by establishing a more affordable repayment plan. Don't wait until it's too late. Declaring bankruptcy can prevent a foreclosure or repossession before it happens, but not after.

Do I Need An Attorney To File For Bankruptcy?

No. Anyone can file a case themselves. However, because the laws and requirements for bankruptcy are so burdensome and complex, we encourage you to consult an attorney right away if you are considering bankruptcy. Let our skillful lawyers help you determine if your debts can be discharged and explain how you can start the process today.

To receive more information on the different types of bankruptcies available to consumers, or to schedule your free consultation at either of our North Mississippi offices, fill out our online contact form or call 662-278-0584 today.