Will Filing Chapter 7 or 13 Bankruptcy Stop Creditor Calls?

When people find themselves in need of debt relief, they want to know when creditors will leave them alone!

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

 

It is illegal for creditors to call or write in an effort to collect a debt as soon as the creditor receives notice of the bankruptcy filing. The “automatic stay” obtained when a bankruptcy case is filed prohibits creditors from taking action to collect on debts as soon as the creditor is notified of the bankruptcy filing.  Incidentally, the automatic stay also bars creditors from proceeding with collection lawsuits as soon as the creditor learns of the bankruptcy case filing.

 

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

Will Filing a Chapter 7 or 13 Bankruptcy Stop Garnishments?

When people find themselves in need of debt relief, they frequently want to know if filing for Chapter 7 or Chapter 13 will cause them to lose their car.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

Whether you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy case, a creditor must immediately stop a garnishment as soon as the creditor receives notice of the bankruptcy filing.  

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

Can I Keep My Car in a Chapter 7 or Chapter 13 Bankruptcy?

When people find themselves in need of debt relief, they frequently want to know if filing for Chapter 7 or Chapter 13 will cause them to lose their car.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

You have some options when you file for a Chapter 7 or Chapter 13 bankruptcy.  In a Chapter 7 bankruptcy, if you want to keep your car you would continue to make the regular monthly payments to the car lender, whereas in a Chapter 13 bankruptcy the vehicle loan would be restructured, the interest rate in many instances reduced, and the vehicle repayment extended for up to 60 months.  

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

Chapter 7 & Chapter 13 Bankruptcy: Still Able to Get Credit?

When people find themselves in need of debt relief, they frequently want to know how bankruptcy will impact their ability to obtain credit.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

 

Declaring bankruptcy will often result in improved credit scores as early as one year after discharge, which will often increase your chances of obtaining credit help in the future. With regard to a mortgage loan, you will usually have to wait two years after obtaining a bankruptcy discharge before obtaining a mortgage loan.

If your income is good, you may be able to get a vehicle loan immediately after obtaining the discharge in a bankruptcy case. People have often told me they get credit card offers in the mail even prior to obtaining their bankruptcy discharge.

As a bankruptcy attorney, I caution my clients to be careful about debt they incur after the filing of the bankruptcy case because it will not be dischargeable in a new bankruptcy case for several years.

 

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

The Difference: Chapter 7 and Chapter 13 Bankruptcy

When people find themselves in need of debt relief, they frequently want to know what the difference is between Chapter 7 bankruptcy and Chapter 13 bankruptcy options.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

A Chapter 7 bankruptcy often takes 3 or 4 months to finish, while a Chapter 13 bankruptcy requires at least a minimal payment to the Chapter 13 Trustee over 3 to 5 years.  A Chapter 13 bankruptcy will usually halt a pending foreclosure sale, but a Chapter 7 bankruptcy will not prevent a foreclosure sale.  In a Chapter 13 bankruptcy assets cannot be taken from you no matter how much equity you have, although in a Chapter 7 bankruptcy, you are limited by how much equity you can have in assets you own and still keep them.  Regardless of how much income you have, you may file a Chapter 13 bankruptcy.  People in the top half in terms of income, however, may have too much income to qualify for debt relief under Chapter 7 bankruptcy.

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.