One of the most beneficial aspects of the bankruptcy process is called an “automatic stay.” The automatic stay is a federal order or injunction that will immediately stop collection efforts by most of your debtors. The idea behind the automatic stay is to give the debtor some temporary relief during the bankruptcy process, and it can be helpful to you for a variety of reasons.
Deciding to file bankruptcy is not a decision you should make lightly. It will have a severe impact on your credit score and may take many years to recover from. For this reason, filing bankruptcy should usually be your last option. However, if you’ve accumulated massive amounts of debt and do not have the income to begin making payments, filing for a Chapter 7 bankruptcy could be your best move.
Once you determine bankruptcy is your best option, you will have to decide which type of bankruptcy to file. Chapter 7 is the most common type of bankruptcy filed by individuals in the Bronx. However, not everyone is eligible. One issue that greatly influences your eligibility is your income.
Deciding to file for bankruptcy is a big decision in anyone’s life and it should not be made impulsively. There are a variety of factors to consider when determining if bankruptcy is right for you. Consulting with a bankruptcy attorney before making a final decision is almost always your best bet.
Millions of Americans are in debt and struggling to keep their heads above water. Fortunately, there are people who can help you get out of debt. Seeking advice from experts such as credit counselors and bankruptcy attorneys is one way to better understand your options and begin to develop a sound plan moving forward.