More than anything, a bankruptcy filing can allow you to catch your breath. With the benefit of the automatic stay, you won’t have to worry every time the phone rings or the mailman comes by. A bankruptcy will temporarily stop most wage garnishments, lawsuits and collection attempts, but not all—family law obligations and criminal restitutions are typically not covered by a bankruptcy filing.
A bankruptcy filing can also help you:
Because bankruptcy only applies to the debt, it doesn’t extinguish any lien against you. For example, if there’s a lien on your house (your mortgage), you may use bankruptcy to eliminate the debt, but the lien holder (lending institution) still can enforce the lien and take the property.
A Chapter 7 bankruptcy cannot typically be used to discharge certain types of debts, such as student loans, child support and alimony payments, and most tax arrearages.
At the office of Howard N. Sobel, we provide comprehensive bankruptcy counsel to individuals throughout the state of New Jersey. Contact our office online or call us at 856-424-6400. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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