Bankruptcy and Your Rights

WHAT IS BANKRUPTCY?

Bankruptcy is a judicial proceeding which has been framed to help consumers and businessmen who are not in a position to pay their bills to opt for a brand-new financial start or work out a payment plan to pay a portion (or all) of their debts over time. Once the person has filed for Bankruptcy, it prevents all of their creditors to collect debt from them. There are four types of Bankruptcy provided by the law namely chapter 7, chapter 11, chapter 12, and chapter 13.

 

CONSUMER RIGHTS:

The right to file for Bankruptcy is administered by federal law, and all Bankruptcy cases are organized in federal court. Once the consumer has decided to file for it, the successive step is to figure out how to file for Bankruptcy. The best and the popular method are to consult a bankruptcy attorney who can counsel the case free of cost and commend how to proceed. By adopting this method the consumer can avail of the following important rights-

 

• Remove the legal responsibility to pay most or all the debts known as “discharge” of debts.  This facilitates to give a new start
• 2) End wage garnishment, debt collection harassment, and any other similar act by the creditor…
• 3) Allows the consumers to question the claims of creditors which are false or trying to collect more than what the consumer has borrowed

 

Before filing for Bankruptcy it is important that the customer has good knowledge of the case and appropriately decides whether to opt for it or not, it can be done by consulting Bankruptcy attorney, since bankruptcy cannot cure financial problem always. If properly used Bankruptcy can be a useful solution for a consumer.