Using Bankruptcy to Keep Your Lenders at Bay
If you've fallen behind on a debt, your lender may be taking increasingly harsh steps to collect on it. If you are in default on a mortgage, you may be facing foreclosure. If you have been successfully sued on any debt, you may be facing wage garnishment.
Filing for bankruptcy puts an immediate stop to debt collection and creditor harassment. At Watson & Linder in Springfield, Illinois, our experienced bankruptcy lawyers help clients stop foreclosure and wage garnishment in their tracks. Contact us to set up a free initial consultation.
Stopping the Foreclosure Sale and Exploring Your Options
The moment you file bankruptcy under any chapter, all foreclosure proceedings against you are temporarily stayed. If a foreclosure sale has already been scheduled by your mortgage lender, it must be canceled. What happens after that depends on your ultimate goals.
- If you want to keep your house and can afford to make your monthly payments going forward, Chapter 13 bankruptcy may allow you to put your late payments (arrears) on a three- to five-year payment plan without being charged interest on them.
- If you want to give up your house but you owe more than it is worth, Chapter 7 bankruptcy may keep you from owing the bank the difference (the deficiency balance). Filing Chapter 7 may also give you time to work out an alternative such as a short sale.
Our attorneys are familiar with all the ways the bankruptcy process can be used to not only stop foreclosure now, but also help you pursue a positive outcome in the end.
Protecting Your Paycheck From Garnishment
Wage garnishment is another technique that lenders use to collect on debts. Lenders who have obtained judgments against you can demand that your employer pay part of your wages directly to them. Wage garnishment can be particularly devastating when you owe tax debts.
If your wages are being garnished or about to start being garnished, filing for bankruptcy will immediately stop the garnishment process.
Our attorneys will explain your options, get your bankruptcy petition filed, follow up with your employer to make sure garnishment stops, and do whatever we can to recover wages that have already been garnished from your paycheck. Don't hesitate to contact us today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
