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Declaring Chapter 7 or Chapter 13 bankruptcy in Raleigh is never an easy decision. Bankruptcy laws exist precisely because financial disasters can happen to anyone.
The cause may vary — an unexpected medical emergency, credit card debt, a business going under, and more — but bankruptcy laws are designed to give people a second chance at getting their life under control.
TOP REASONS FOR FILING FOR BANKRUPTCY
Unsure whether declaring bankruptcy is for you? These compelling reasons people do so might help you with your decision.
- Debt collectors are suing you.
If you fail to make debt payments, there’s a great chance that a collection agency will take over for your creditor. They typically employ aggressive harassment tactics to intimidate people and force them to pay. At some point, they may resort to filing a lawsuit to get you to pay up.
It is difficult to fight a debt collection lawsuit, and losing may add attorney’s fees and court costs to your debts. On the other hand, filing for bankruptcy enforces an automatic stay against creditors. You can’t be subjected to lawsuits and other collection actions, so you can have peace of mind as you continue to resolve your debt.
- Creditors are garnishing your wages.
Once the creditor wins the debt collection lawsuit, they may be allowed to garnish your wages. This means that your employer will have to subtract a specific amount from your check until your debt is paid off. If you’re surviving on pay check to pay check, this can bury you in even more debt.
Bankruptcy lawyers in Raleigh, NC can help put a stop to this process since an automatic stay usually covers wage garnishment. However, take note that the automatic stay does not cover other debts like alimony or child support.
- You stand to lose your home.
Job loss, hospitalisation, divorce — there are plenty of reasons you might be unable to keep up with payments on your house. The good news is that filing for bankruptcy can defer foreclosure and allow you to keep your home.
Under Chapter 13, for instance, you’re allowed to keep your assets and follow a three to five-year plan for making payments. Depending on your situation, the rest of your debts may be discharged after this period.
- You’re surviving on credit cards.
Are you turning to credit cards to cover your basic living expenses? Then you’re a good candidate for filing for bankruptcy.
This is where Chapter 7 comes in. It is for people whose income is not enough to pay their debt load. In this case, declaring bankruptcy can give you the relief you need to get back on your feet financially.
Your Bankruptcy Lawyers in Raleigh, NC Are Here to Help
There are many more valid reasons to file to bankruptcy, and Weik Law Office can guide you through your options. Call Weik Law Office today at 919-845-7877 for a free consultation and set up a time to speak with one of our professionals.