After you file for bankruptcy, you’re automatically lay under an automatic remain . That it prohibits collectors of garnishing your wages , repossessing your car , or requesting to own financial obligation payments. Put simply, the loan providers you should never harass you so long as their bankruptcy proceeding instance is actually constant. Even though it will not decrease your obligations, it may be a reduction to not getting hounded of the some body attempting to make currency (you never even have) off of you.

Delayed Student loan Costs

As you are included in the fresh new automated sit, you don’t need to make education loan costs both. You can end making your loan payments up until it is much easier you want to do very.

Chapter 7 Case of bankruptcy

Chapter 7 case of bankruptcy is even known as liquidation bankruptcy proceeding since it relates to liquidating your non-exempt possessions to repay the majority of your financial obligation following discharging the rest obligations. Exempt property are those that are felt very important to one to go on generating an income, such as your house and you will a moderate auto. All else tends to be considered low-excused such as for example money collections otherwise more attributes. Read more