When the going gets tough, managing your finances becomes extremely tricky. Sudden loss of job or medical problems can throw your household economy out of gear. Managing your debt payments may be problematic in such cases. It is no wonder that many people find themselves on the verge of bankruptcy. Despite its disadvantages, lawyers of Dallas based bankruptcy law firm Recovery Law Group say, filing for bankruptcy has many benefits including preventing any legal action against you.
When you fall behind payments, creditors can pursue all kinds of actions to ensure they get their money back. These include threatening phone calls, letters and emails and even suing you for non-payment of debts. The lawsuit can have grave consequences including liquidation of assets, repossession and wage garnishment too! Thus, if you wish to save yourself from legal action and protect your assets, it is important that you take adequate action.
Filing for bankruptcy can effectively put an end to all types of collection actions by the creditors. When you file for bankruptcy, your creditors are notified of it. With the automatic stay provision in place, your creditors cannot initiate or continue with any collection action against you. This provides you with an ample amount of time to get your finances in order. Even after a bankruptcy discharge, creditors cannot sue you for any debts that were included in your bankruptcy petition. However, if you forget to include any debt (whether individually or jointly held), you can face a lawsuit from the creditor. If a lawsuit is filed against you during or after your bankruptcy, you should inform your bankruptcy attorney about it. In case you haven’t hired one, you need to call 888-297-6023 and consult with experienced bankruptcy lawyers Dallas.