Stopping Credit & Debt Collection Activities
Will Filing Bankruptcy Stop Foreclosure?
Bankruptcy will stop foreclosures on mortgages or delay the foreclosure process. A Chapter 13 repayment plan can offer a debtor a means of catching up on delinquent mortgage payments and allows a debtor to retain possession of a home. A second option is filing for Chapter 7 bankruptcy.
When it comes to foreclosure, filing for bankruptcy can help you. The automatic stay that comes with filing for bankruptcy can aid in dealing with a pending foreclosure. The automatic stay goes into effect as soon as an individual files for bankruptcy, and applies in both Chapter 7 and Chapter 13 bankruptcy cases. The result of filing for bankruptcy and utilizing the automatic stay is creditors immediately cease their collection attempts for mortgage payments. This includes phone calls, pursuing litigation, or taking your property through repossession or foreclosure. The automatic stay provides relief to debtors from creditor harassment. The automatic stay also provides additional time for individuals whose property is pending foreclosure to figure out a plan of action.
Will Bankruptcy Stop Garnishment or Lawsuits?
The filing of a Chapter 7 or Chapter 13 bankruptcy will Stop Creditor Harassment and stop creditors from continuing almost all civil legal proceedings against the debtor. The most common types of civil legal proceedings or lawsuits are those brought on behalf of credit card lenders, hospitals, clinics, and mortgage companies. The filing of a Chapter 7 or Chapter 13 bankruptcy will not stop a criminal proceeding.
Will Bankruptcy Stop Repossession?
Filing for bankruptcy typically will Prevent Car Repossession and stop the repossession of mobile homes. Also, a Chapter 13 Repayment Plan will allow the debtor the opportunity to become current with the automobile or mobile home loan that is delinquent.
Will Filing Bankruptcy Stop Harassing Phone Calls?
Yes. Filing for bankruptcy will prohibit any type of collection effort regarding a civil debt. At our firm, we usually ask clients to begin referring harassing telephone calls to our office even before filing the client’s bankruptcy petition.
CONTACT A MN BANKRUPTCY LAWYER
Since 1972, our team of kind, helpful, professional and experienced MN Bankruptcy Lawyers have helped thousands of people just like you overcome severe debt problems and get their lives back. We can help you too. Contact one of our numerous Minnesota Locations today for a free, no-obligation bankruptcy consultation and get started on the road to debt freedom today.