Making financial ends meet is difficult enough, but when you get behind on debt payments and a creditor secures a wage garnishment order against you, your financial circumstances can get particularly rough. Fortunately, you may be able to stop wage garnishment in its tracks by filing for bankruptcy. Those who qualify from the bankruptcy process will benefit from an "automatic stay."
One of the most distressing things about Chapter 7 is the idea that you might have to get rid of your assets and other possessions. After all, Chapter 7 is called "liquidation" for a reason -- you'll need to sell many of your assets to and pay back your creditors with the proceeds. However, it's vital to remember that you won't need to sell all of your assets.
Falling behind on your bills can impact your credit. Falling behind on your mortgage can impact your ability to remain a homeowner. Regardless of why you find yourself struggling to make your mortgage payment, your bank will likely only give you so much leeway before they start taking action. Efforts to collect on that debt could include foreclosure on your property.
One of the most common fears that keeps people with overwhelming debt from filing for bankruptcy is worrying that they may never recover financially. It is plain to see why so many people share this fear, but bankruptcy is intended to give debtors the tools they need to rebuild a firm financial foundation, not keep them from recovering.
Bankruptcy is a means by which overwhelmed individuals and businesses can seek financial forgiveness. In order to protect the interests of companies that extend credit, the federal government has certain rules and restrictions in place regarding bankruptcy.