Debt can have a devastating way of taking over your life. State and federal debt laws may grant your creditors extensive reach to garnish your wages and levy your bank accounts and assets. You may find yourself without any money to live on reasonably and sinking further and further behind to companies to whom you owe money.
Instead of living with significant debt, you can take legal action to resolve it. You can start by hiring an experienced and knowledgeable Chapter 7 bankruptcy attorney to represent you.
Stopping Collection Activities
When you put a Chapter 7 bankruptcy attorney on retainer, you can immediately stop any collection activities against you. Once your attorney notifies your creditors of your bankruptcy filing, they must immediately release all garnishments, levies, and seizures. They must stop taking any money from you and also stop contacting you about your debts.
If creditors continue to contact you after you file for bankruptcy, they could be found in contempt of court and liable for your court costs. Your lawyer can file lawsuits against them and ask the judge to find them in contempt of court.
Liquidating Qualifying Debts
When you put a Chapter 7 bankruptcy attorney on retainer, you can also liquidate debts that are eligible for this action. Some debts, such as student loans and child support debts, cannot be forgiven with this chapter of bankruptcy. However, other debts like medical bills, credit card obligations, and payday loans can be liquidated and forgiven through this filing.
Your lawyer can determine what debts of yours can be included in the bankruptcy filing. Even if you cannot include student loans or child support debts in your forgiveness plan, you may be able to stop paying on them while you file for bankruptcy. After the trustee rules on your case, he or she may advise you to reach out to your student loan creditors and the family court to renegotiate a more affordable payment plan on these obligations.
Retaining a Chapter 7 bankruptcy attorney can provide debtors like you with a number of benefits. Once you file your case, you can stop your creditors from contacting or taking any collection actions against you. You can also get many or all of your debts liquidated and renegotiate payments on debts like student loans.
To learn more about how a Chapter 7 bankruptcy lawyer can help you, contact a lawyer in your local area.