Perhaps the best reason to file for bankruptcy, under Chapter 7 or Chapter 13, is to get protection from your creditors through the courts automatic stay. As soon as your case is filed, creditors can no longer collect payments, garnish wages, or proceed with any form of solicitation including foreclosure. Filing for Chapter 7 bankruptcy will keep creditors at bay while you work out an arrangement and try to get back on track says Los Angeles Bankruptcy Attorney Steven C. Peck.
Finally, Chapter 7 bankruptcy clears off your debt so that you can get a fresh start on your finances. Your credit score may suffer, perhaps more than if you filed for Chapter 13, but you have more time to start reestablishing your credit and building an emergency fund. Your bankruptcy attorney can give you tips on making use of this opportunity and avoiding more bankruptcy filings in the future.
About the Author
Attorney Steven Peck has been practicing law since 1981. A former successful business owner, Mr. Peck initially focused his legal career on business law. Within the first three years, after some colleagues and friend’s parents endured nursing home neglect and elder abuse, he continued his education to begin practicing elder law and nursing home abuse law.