Financing Cases

Filing for Bankruptcy? Know Your Legal Options

Written by Adams

Overwhelming debt doesn’t go away on its own. Something always has to be done to eliminate it. Bankruptcy is a viable solution among many. Some of the legal rights that you have in bankruptcy are as follows.

You Have a Right to a Consultation

The first right that you have when it comes to bankruptcy is the right to a consultation. You should have a full understanding of not only the process of bankruptcy but the process of other available options so that you can make an informed decision.

You Have the Right to Consider Alternatives

You have the legal right to educate yourself about and consider a variety of alternative options for your situation. Just a few of the options that offices like the Gil Law Firm could explain are options like debt settlement, debt management plans, debt consolidation and the like. Everyone’s situation is different, and bankruptcy may not be the right option for you. Something else may fit your profile better than you ever imagined. You could try that option and save yourself from the trouble of trying to force something that doesn’t work.

You Have a Right to not Accept Creditor Harassment

One of the most liberating elements of bankruptcy is that you do not have to take creditor abuse. The moment that the attorney files the case, you gain the right to request creditors to cease and desist their pay-now demands. The bankruptcy disallows them from collections attempts until the court rules on your request for bankruptcy status. Many people choose bankruptcy as their solution because no other form of credit repair type has quite the same amount of power when it comes to releasing yourself from the creditor’s strong arm.

You Have a Right to Create an Effective Repayment Plan

If you qualify for chapter 13 bankruptcy, you’ll have an opportunity to repay your creditors partially. In fact, you will have to repay them because you will ineligible for the almost 100 percent obligation release that chapter 7 gives you. It all depends on your income and your ability to repay your debt. Sometimes a chapter 13 can be positive for a consumer because it can instill debt responsibility and start that person out on a positive repayment path.

Now you know of some legal rights you have with bankruptcy. It would be wise for you to study all of your alternatives, however. There may just be a diamond in the rough can that help you get out of this situation in a pleasing way.

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Adams