Unsecured Debts- Unsecured debts are commonly credit cards, personal loans, and medical debts. If you are drowning in unsecured debts, whether from a failed business, relationship issues, job loss, or various other reasons, you may look to bankruptcy to try and relieve the creditors. Unsecured debts are typically discharged within bankruptcy cases. There are some exceptions, though, regarding student loans, certain tax debts, criminal fines, etc.
Secured Debts- Secured debts stem from creditors taking a security interest in your property for the debt. Think mortgages, vehicle loans, and recreational loans. If you are behind on your secured loans, you may explore bankruptcy options to catch up on the arrears you owe.
Peace of Mind—When you file bankruptcy, the automatic stay goes into effect. This prevents most ordinary creditors from continuing to collect from you or making collection attempts, including calls, letters, and lawsuits. When you file bankruptcy, you get peace of mind from the collection efforts.
Lawsuits and Judgments- If you are being sued by your creditors, garnished or levied, bankruptcy will stop these creditors from continuing with the lawsuit, stop garnishment, and stop bank levies. In certain situations, you may get some of the levied or garnished funds back.
If you have questions about bankruptcy and would like to discuss your options in a free consultation, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!