Declaring the bankruptcy is not a shameful event. Rather, it can save you from facing the regular harassments and continuous pressure from the creditors for repaying the debts. That doesn’t mean that you will have no payment liability at all. You will get some time to recover from the dearth and pay off the debts. You will also receive your due wages in this period which you would have missed otherwise. Some of the lawsuits will stop immediately with the declaration. The freedom from so much tension might be temporary, but it will give you ample time to arrange for the money.
No evictions in stay order period
In some debt agreement, you might have kept your house on the mortgage as the term was to keep some asset as a mortgage. Failing to repay that loan will clearly imply that you will lose your right on the house. The creditor can arrange for eviction as per the court’s order at any moment. But if you declare bankruptcy, the court will pass an automatic stay order. The order will stop the process of eviction immediately which is in the process of litigation. But if the court had already stated its judgment of eviction against you before you declared the insolvency, then bankruptcy will also not be able to stop the eviction.
If you declare the bankruptcy before the court orders for eviction, then the stay order will stop further repossession or foreclosure. But you won’t be able to keep your property even on filing Chapter 7. When you Learn more about the law, you will understand that without money flow in your account, you will instantly lose the ownership of the house or the car the moment the stay order lifts. But Chapter 13 provides an option of regaining the possession authority once you catch up with the due payment schedule.
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