What is bankruptcy protection?

You might find yourself searching the internet for solutions to your mounting debt. The words “bankruptcy protection” may continue to pop up from time to time in your quest for additional information on your problem. So what is bankruptcy protection?

Bankruptcy protection begins as soon as a debtor files. When a bankruptcy is filed with the Court, an automatic injunction begins that halts actions by creditors (there are certain exceptions) referred to as the “automatic stay.” This allows for a debtor to have breathing room without having to worry about phone calls, letters, lawsuits and other actions by creditors. In the situation of an individual, if they complete the rest of the necessary steps in their bankruptcy they will eventually be granted a “discharge” of all their debts (there are certain exceptions). A discharge releases the individual from personal liability on the debts eliminating the legal requirement to pay the debts.

If you are struggling with debt and think that you may need bankruptcy protection to eliminate or reorganize your debt then you could benefit from meeting (oftentimes with no charge) with an experienced bankruptcy attorney. The attorneys at Andersen, Ellis & Shephard have years of experience and would be happy to counsel you on whether bankruptcy might be a good fit for you.

At the law offices of Andersen, Ellis & Shephard, we have represented thousands of individuals in consumer bankruptcy filings.

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