When people are contemplating filing for bankruptcy, they’re often curious about the immediate and long term financial impact. Bankruptcy has several benefits for people who have a considerable amount of debt, but there are also some important consequences that they need to consider carefully. How you file and when you file may have a big impact on whether bankruptcy can offer the solutions that you’re looking for.
Will You Discharge Debt?
There are a couple of different types of consumer bankruptcy. One will eliminate payment obligations while the other will allow you to enter into a payment agreement. Which type of bankruptcy you’re eligible to file for may depend on how much you owe and the value of your current assets. If you need help from a licensed professional attorney Lakewood CO to evaluate your options, reach out to a practice that is experienced in handling consumer bankruptcy.
Can You Keep Your House?
Many people worry that bankruptcy will cause them to lose their homes. In fact, declaring a homestead on your property may shield it from foreclosure. You should be aware, however, that discharging any outstanding obligations on a mortgage will not nullify it. While the financial institution holding a mortgage cannot take possession of your home, it will still have a valid lien. Anyone who you sell your property to will take title subject to the mortgage.
Will Bankruptcy Stop Creditors?
Once you have filed for bankruptcy, creditors cannot keep hounding you for payments. Bankruptcy is often a good way to put an end to incessant collection attempts.
Ultimately, learning more about the bankruptcy process and doing some thorough due diligence can make the process a little less daunting. Also, you can make sure that the process goes a little more smoothly by organizing all of your financial information and being able to present a clear picture of your situation when you file.