While filing for bankruptcy may seem like a scary and even demoralizing experience, it can save you and your family from financial ruin.
When you have a family, you are responsible for doing everything possible to protect them, even if it means filing for bankruptcy when you fall into credit card debt.
Here is how the process can protect your family from overwhelming credit card debt.
Automatic Stay
When you file for bankruptcy, an automatic stay immediately goes into effect. This prevents any creditors from taking legal action or any further collections against you.
Automatic stays also shield your family from harassing phone calls and letters, wage garnishment, and lawsuits related to debt, allowing you the space to work through your next steps.
The Discharge of Unsecured Debt Under Chapter 7 Bankruptcy
Chapter 7 Bankruptcy eliminates unsecured debts, including credit card debt, meaning that you are no longer legally required to pay off the late fees.
Without the threat of looming credit card debt, families can focus on other essential expenses including healthcare, housing, food, and education.
Restructured Debt Under Chapter 13 Bankruptcy
Unlike Chapter 7 Bankruptcy, Chapter 13 allows you to set up a structured repayment plan to pay off portions of your debt over time.
The repayment amount can even be reduced to that of what was originally owed, allowing your family to keep their valuable assets and avoid jeopardizing your family’s financial security.
Filing for bankruptcy when you find yourself in credit card debt can help eliminate financial pressure, protect essential assets, and give your family a fresh start.
For more information about filing for bankruptcy, contact our experts at Todd Cushner & Associates today.