Before you decide whether or not to file bankruptcy it would be a good idea to consult with a lawyer or a financial advisor to ask them all of your Bankruptcy Questions in Nashville, TN. Most people do have a basic understanding of the fact that bankruptcy is supposed to be like pressing a reset button on your credit history. However, it is not uncommon for someone to not know very much more than that.
Will All Of Your Debts Be Canceled?
One of the most commonly asked Bankruptcy Questions in Nashville, TN is whether or not it will be able to erase all of a person’s debts. Unfortunately, this really depends on what kind of debts you have. Credit cards, medical debt, and other forms of unsecured debt can all be erased by bankruptcy. However, secured debts such as child support or alimony are not debts that cannot be wiped from your record.
Do You Get To Keep Your Property If You File?
Whether or not you get to keep your property depends on how much your property is worth and which type of bankruptcy you file. If you file Chapter 13 then you would get to keep all of your property regardless of how little or much it is worth. If you file Chapter 7 bankruptcy there is a chance some of your more valuable pieces of property will be liquidated in order to pay back some of the debt you owe.
Can Bankruptcy Help When Facing Foreclosure?
Filing bankruptcy when you are facing foreclosure is only going to be beneficial if you file Chapter 13 bankruptcy. This is because it will allow you to pay off your late and unpaid payments over a prearranged payment plan that is based on what you afford. Until you get caught up with your payments or the payment period passes, your home could not be foreclosed on.
There are also a lot of people who wonder whether or not debt collectors will continue to call you every day if you file bankruptcy. Until a decision is made regarding the status of your bankruptcy you will be placed in what is known as an automatic stay. During this automatic stay debt collectors are not allowed to contact you.