Home Blog How a Bankruptcy Can Help you Avoid Lawsuits

How a Bankruptcy Can Help you Avoid Lawsuits

Debtors are often harassed by their creditors. Dealing with incessant phone calls, emails, and visits can be overwhelming. You may decide not to take your calls anymore but you can’t continue to do that. Finding a lasting solution to the problem is the way out. You have two options; pay the debt or contact a bankruptcy attorney. It is quite obvious that you aren’t able to pay the debt, hence the harassing calls. Seeing a bankruptcy attorney can bring relief to these worries. A bankruptcy attorney is trained to listen to your financial problems and recommend the best line of action.

Not in all cases will your bankruptcy attorney recommend filing for bankruptcy; however, if the situation demands it, a bankruptcy filing may be the only solution for you.

How a Bankruptcy Filling Can Protect You From Lawsuits

  • Automatic Stays

Filing bankruptcy may have its downsides; however, one of the advantages of taking this step is the automatic stay. Once you have filed for bankruptcy, your creditors are alerted and are to automatically cease all collection efforts. This means that you can now enjoy peace of mind knowing that your creditors won’t harass you or take legal actions against you.

With an automatic stay, your creditors can no longer trouble you. With this renewed peace of mind, you can work closely with your bankruptcy attorney to finalize the details of your bankruptcy filing. Note that any lawsuit that has been initiated against you will be put on hold until the outcome of your bankruptcy filing is reached. If you are denied, the lawsuits resume.

  • Chapter 7 Discharge

There are two types of bankruptcies you can file for. Chapter 7 bankruptcy allows you to discharge all of your unsecured debts. If granted, you can forget about paying back credit card loans, medical bills, and personal loans. This bankruptcy generally covers all of the debts that are not backed by collateral or assets. If you are having problems resolving any unsecured debt, filing chapter 7 bankruptcy can rescue you from them and save you from future legal actions.

Speak to your bankruptcy attorney to find out the requirement for this kind of bankruptcy filing.

  • Chapter 13 Restructuring

If you are an income earner with the financial capacity to pay off some of your debts, you may be able to take advantage of chapter 13 bankruptcy filing. In essence, this kind of bankruptcy assesses the entirety of your debt profile and conciliates them into one. With Chapter 13 bankruptcy, your debts are restructured and a flexible repayment plan is set. The repayment plan may take three to five years, depending on the extent of your debt. After the repayment period has elapsed, any of the remaining debts are discharged.

Chapter 13 bankruptcy can help you to keep your car from being repossessed or your home from being foreclosed. The amount owed to these organizations can also be included in your repayment plan.

Filing for bankruptcy has its pros and cons. However, if you are tired of the constant harassment from creditors and collection agencies, speaking to a bankruptcy lawyer is advised. Learn more about bankruptcies at

Arizona Bankruptcy and Debt Solutions
1013 S Stapley Dr.
Mesa AZ 85204

Do You Qualify for Bankruptcy?

Filing for bankruptcy isn’t the right solution for everyone. The determination of whether or not bankruptcy is an appropriate debt relief solution for your will be made based on a number of factors including the type and total level of your debt. Use this form to schedule an appointment with one of our bankruptcy attorneys. The consultation is completely free and there is no obligation.