Automatic Stay
After you file for bankruptcy, an automatic stay is called. While your case is pending, the automatic stay prevents creditors from attempting to collect the debt owed to them. Your wages won’t be garnished, and many of your unsecured debts can’t be collected during this phase, but any criminal cases or support payments have to be made. This gives you time to work with legal counsel.
Temporarily Stop Evictions or Foreclosure
When you file for bankruptcy, evictions are halted while you’re in the litigation process, but there are certain exceptions. Different states have varying rules, and in some cases, the landlord can get an eviction judgment for it.
There won’t be any repossession or foreclosure, but a key difference is that a Chapter 7 filing means you lose your assets after the stay is lifted. A Chapter 13 filing means you keep the assets in question as long as timely payments are made.
Repayment
In case of a chapter 7 filing, your trustee has the power to sell off non-exempt assets to pay the creditors. The priorities of these payments are dictated by bankruptcy laws. You don’t lose every single item, though, as various assets come under exempt assets so they won’t be given away to pay off creditors. For a chapter 13 filing, you work with a detailed repayment plan to eventually pay off all of your debts.
Bankruptcy can be a difficult process, but having a legal team can help out a lot in the ordeal. Mirabile Law Firm is based in Illinois, headed by professionals that have the necessary experience guiding clients through bankruptcy.
We’re also offering the help of estate planning lawyers, wills and trusts attorneys, along with immigration law services and bankruptcy services for corporations in Naperville, Glen Ellyn, Carol Stream, Bolingbrook, and surrounding areas. Get in touch with us today.