Can A Bankruptcy Lawyer Help If You’re In Debt?

Anyone can find themselves in debt because of unavoidable circumstances. Debt can affect your mental health because of frequent phone calls and emails from creditors. However, a bankruptcy lawyer can help you if a debt collection attorney in Bloomington, Minnesota, keeps disturbing your peace. That said, here are ways a bankruptcy lawyer can help you if you’re in debt.

Filling for Bankruptcy

One way to prevent a creditor from disturbing your peace is by filing for bankruptcy. However, the process can be challenging and frustrating. However, a bankruptcy lawyer has the legal knowledge and can complete the process quicker than you imagined.

Depending on your debt, the bankruptcy lawyer files for Chapter 7 or Chapter 13. This way, they protect you from receiving numerous emails from a debt collection attorney in Bloomington, Minnesota. 

Automatic Stay

Automatic stay stops creditors from harassing you. Your bankruptcy attorney helps you buy time and develop a better financial plan. This way, you can make money to pay your creditors before the automatic stay is over. However, automatic stay doesn’t work in all debtor and creditor cases. Hence, a bankruptcy attorney helps you know whether automatic stay can work in your case.

If in a financial crisis, automatic stay can do several things for you, including:

  • Stop foreclosure proceedings
  • Stop disconnection of utilities
  • Stop evictions

 Circumstances when automatic stay may not work include:

  • Pension loans
  • Some tax proceedings
  • Alimony obligations
  • Multiple filings
  • Criminal proceedings

How Does a Creditor Act on Automatic Stay?

A debt collection attorney in Bloomington, Minnesota, helps a creditor determine whether the automatic stay is legit. If not, the creditor’s attorney reaches out to your lawyer to negotiate the mistake. However, if it has no mistakes, the creditor should stop harassment, and if they don’t, you can sue them for harassment.

Benefits of Hiring a Bankruptcy Lawyer

There are several benefits of hiring a bankruptcy lawyer, including:

Saves You Money

Even in debt, you could have money to use and meet your basic needs. Hence, a bankruptcy lawyer helps you to save the little money you have as you plan how to pay back your creditors. Again, they help save your property, such as home evictions, saving you money to take care of your family.

Saves Your Home

If your creditor is a mortgage collector, you could lose your home. However, a bankruptcy lawyer prevents foreclosure of your home by taking action before the foreclosure process is complete. They are knowledgeable and save you from being homeless.

Understands Bankruptcy Options

Your bankruptcy lawyer can file for bankruptcy, document automatic stay or both. These lawyers save your assets and help you develop a better way of paying your creditors. Again, they negotiate for you to avoid further problems adding to your debt issues.

Bottom Line

A debt collector attorney knows and can help creditors to collect their debts, even if it means harassing you. But on the other hand, a bankruptcy lawyer can help you save the little you have if you fall into debt. Hence, consider the benefits of hiring a bankruptcy lawyer if you have overwhelming debts.

Posted in Law