The Timeout
When filing for bankruptcy protection, the court automatically issues a stay order. This order is sent to your creditors informing them of your bankruptcy petition and requesting a halt to all collection efforts. This means that your creditors are unable to attempt collection, repossess, or liquidate your assets. The automatic stay order is exclusive to the bankruptcy procedure and provides complete protection against wage garnishment, foreclosure, and repossession.
In addition, the automatic stay can become permanent for any debts discharged as part of your case. This implies that any debts discharged through the bankruptcy process cannot be collected in the future. Once the account has been deemed resolved as part of your case, creditors will be unable to pursue payment from you. It is essential to note, however, that the non-collectible aspect of your debt only pertains to you or the filing party. If you file for bankruptcy on a jointly held debt without including your spouse, your non-filing spouse may be held responsible for the debt. Consequently, it is always advisable to obtain the assistance of an attorney.
A Blank Page
The elimination of negative payment histories from your credit report is a further advantage of declaring bankruptcy. In contrast to other debt relief options, bankruptcy does not eliminate the burden of delinquencies. While it is true that a bankruptcy will be noted on your credit report, this notation will not have a negative impact on your credit score. In fact, the majority of individuals discover that their credit score improves after completing a bankruptcy case. With settled debts and a clean credit history in hand, repairing credit after bankruptcy is much simpler than after other debt relief methods.
The opportunity to start over affords you the chance to alter your financial practices for the better. Obtaining new credit is essential, but only after implementing sound money management strategies. The information provided in the debtor's education course of the credit counseling requirement can place you on a solid financial footing by assisting you in developing and sticking to a budget, opening a better savings account, and planning your credit purchases.""
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