If you have gotten behind in your payments and your debt is getting larger with late fees and penalties, you may want to consider filing bankruptcy. If you are starting to get warning letters of pending legal action regarding your debt, talking to a bankruptcy attorney is a significant step to protect your assets.
Notice of Deficiency
A formal Notice of Deficiency or a notice of intent to sell your home from your mortgage lender is a serious legal action that you could lose your home over. Filing bankruptcy does a couple of things right from the start:
- The Automatic Stay stops all legal action against you as soon as you file your bankruptcy papers with the court.
- Filing bankruptcy gives you three to five years to catch up on your back payments without losing any of your assets.
When you get behind in your car payments, the repossession crew can come out to get your vehicle in as soon as one missed payment. It usually doesn’t happen that fast as the lender would prefer you make your payments plus the interest.
Credit cards, personal loans, medical bills, and other unsecured lenders can take you to court for nonpayment. The lender could win a judgment lien or garnishment of wages order against you.
Filing bankruptcy stops all legal action, including foreclosures, repossessions, wage garnishments, and liens. It won’t stop the legal action forever, but it will give you the time to figure out how to proceed with your finances. Contact a Hidalgo County bankruptcy attorney to find out what type of bankruptcy will be your best option to save your assets and get financial relief.