For millions of Americans, the stress of this last recession has not subsided, and after all the attempts to get back on one’s feet, it can seem like no matter what is tried, the only real solution for a fresh start is to file a Chapter 7 in Lawrence, KS.
One of the problems facing people who are reluctant to file bankruptcy is that their creditors have every legal right to pursue for collection of a debt. This include filing a lawsuit against the consumer and being awarded a judgment. Once a creditor has been awarded a judgment, they then can exercise some harsh collection activities, such as foreclosing on a home, garnishing paychecks and seizing money out of checking accounts.
Unless a person files a Chapter 7, none of this collection activity goes away. You can send your creditors a cease and desist letter to stop the harassing phone calls and letters, but it will not stop them from moving forward with any collection, repossession and foreclosure activity.
Sometimes it does not make sense to file a chapter 7 in Lawrence, KS. Many lawyers who practice bankruptcy law will tell you if your unsecured debt– medical bills and credit card bills– are less than ten thousand dollars, you may be better served by trying to work directly with your collectors to come up with a payment that works for both parties. Keep in mind that a bill collector really does not want you to file bankruptcy. Doing so extinguishes your debt to them. Knowing this, you do have some leverage when it comes to negotiating for an equitable payment schedule.
This also encompasses your mortgage. Your bank doesn’t want to foreclose on you. They don’t want your home, they want your monthly payments. As such, they may be inclined to work with you on a loan modification which will keep you in your home and will reduce your payment to your mortgage company. However, if you are in active foreclosure and you are denied a loan modification– perhaps your income is too high or you have no income at all– then filing for a Chapter 7 may be your best option to stop (temporarily) the foreclosure. Once your bankruptcy is complete, you can still revisit with your mortgage company about modifying the terms of the mortgage payment so that you don’t have to surrender your home to the bank.
If a Chapter 7 is your best course of action, then Business Name provides lawyer who understands thoroughly a Chapter 7 in Lawrence, Kansas (KS). Get in touch with them!
