What to Expect When Filing for Bankruptcy

Debt Text on a Calculator

To save whatever they have left, filing for bankruptcy comes as the last resort for both businesses and individuals. Most would prefer to not file for bankruptcy since it permanently affects your credit history is permanent and getting a good score can prove to be difficult afterwards.

However, you can turn bankruptcy to your favor by hiring an experienced Salt Lake City bankruptcy lawyer. Here is what filing for bankruptcy can do for you:

Stop Creditors and Collection Agencies from Calling You

Part of the collection protocol is for lenders or agencies to contact the debtor to collect payment. When a debtor has already filed for bankruptcy, creditors and collection agencies are prohibited by law to contact them to collect.

Lien Avoidance

Liens are properties that can be taken away from you due to an incapacity to pay. Filing for bankruptcy can help you avoid liens depending on the required criteria. Keep in mind that this doesn’t apply to every lien which makes it imperative to talk to your lawyer about this.

Remove Credit Card Debt

As of 2017, Americans owe more than $1 trillion in credit card debt. Filing for Chapter 7 bankruptcy protects an individual from the consequences of unpaid credit card debts. This, however, still depends whether you own an unsecured or secured credit card and other factors.

Filing for bankruptcy can be tricky for a layperson to tackle on their own. Make sure you meet all the requirements in filing for bankruptcy and aid by enlisting a skilled bankruptcy lawyer.