Getting out from under Debt through Bankruptcy - Stratford East Haven Lawyer

Once you file for bankruptcy, an automatic stay is issued by the court which halts all repossession and foreclosure actions by creditors. In addition, debt collection agencies and creditors cannot contact you and must direct all correspondence through your attorney. In this way, bankruptcy is not only an effective means for stopping or avoiding foreclosure, but also for putting an end to the endless calls and letters from creditors.

If you qualify for Chapter 7 bankruptcy, credit card debt, medical bills, and other forms of unsecured debt will be discharged. Under the terms of Chapter 13, your debt will be restructured, allowing you to catch up on past due mortgage payments and regain control over unsecured debt.

If you have debts that you can't pay, it's probably a good idea to consider bankruptcy as an option. If you are dealing with high interest rates, struggling to reduce your principle, or are worried about losing your home, contact bankruptcy lawyers at Ambrogio, Pletter & Associates, LLC today.

Contact our law offices in Stratford or East Haven, Connecticut to schedule a free consultation. Call 203-502-7436.

Should I File for Bankruptcy? Will My Credit be Ruined?

Unfortunately, some people wait until the last moment to file for bankruptcy. As a result, their home may be in foreclosure, their credit cards maxed out, and their cars repossessed. If you're finding it increasingly difficult or impossible to pay your mortgage AND your monthly bills, please consider filing for bankruptcy before things get out of control.

Before filing for bankruptcy, it's important to ask yourself the following questions:

• How much interest are you paying on your credit card?
• In the course of one year, how much has your principle been reduced?
• How much money are you able to save on your current budget?

At Ambrogio, Pletter & Associates, LLC, an attorney will explain the benefits of bankruptcy and how they apply to your exact situation. We will give you honest answers about how to obtain debt relief. Contrary to what you may believe, bankruptcy doesn't mean your credit will be forever destroyed and that you'll never be able to qualify for a loan or credit card again. In fact, not only are most people able to rebuild their credit, some qualify for a low balance credit card within months of filing for bankruptcy. Our attorneys can explain what happens after bankruptcy and the steps you can take to begin rebuilding your credit.

Will I Lose My Home If I file for Bankruptcy

While each person's situation is different, if you are able to continue making monthly mortgage payments, you should not lose your home. Chapter 7 does leave you with more disposal income each month to put towards your mortgage.

People who struggle to pay the minimum balance on credit cards or certain kinds of loans are paying on debts that would otherwise be discharged in bankruptcy. By eliminating credit card debt, high-interest rate loans, and other unsecured debt, a debtor can free up money in his or her budget to pay the mortgage.

Loan Modifications and Avoiding Foreclosure

Homeowners who have a steady source of income and a variable rate or interest-only mortgage, or who have suffered a job loss or illness may qualify for a loan modification with their lender. However, if a homeowner owes more than he or she makes in a given month, it's unlikely he or she will be approved for a loan modification.

It may be effective to first file for Chapter 7 bankruptcy, and then apply for a loan modification. Since filing for bankruptcy places an automatic stay on debt collections and foreclosures, this is an effective way to stop foreclosure and make mortgage payments more affordable. Contact us to find out if this is a viable option for you.

If a loan modification is not successful, Chapter 13 bankruptcy still exists as an option. Filing for Chapter 13 will restructure your debt, stop foreclosure, and pay back arrearages of up to five years. Additionally, depending on your financial situation, you may qualify for a home equity loan or second mortgage.

The Advantages of Filing for Bankruptcy

Bankruptcy is not intended as a punishment. Its sole purpose is to provide debtors with a means of obtaining a fresh financial start after being overwhelmed by debt. As a result, filing for bankruptcy offers the following advantages:

• Stop wage garnishment
• Stop repossession
• Stop foreclosure
• Stop harassing creditor calls
• Remove a lien on your house

To learn more about the benefits of bankruptcy and loan modifications, contact the bankruptcy attorneys at Ambrogio, Pletter & Associates today to schedule a free consultation and discuss the options available to you.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.