It is all too easy for debt to leap to unmanageable levels. Every week, we receive countless credit card applications in the mail. Many of these offer benefits like airplane miles, which accrue with every dollar spent on credit. With so many tempting options available, we are often lured into spending more money than we actually have on items that we cannot afford.
If you rack up more debt that you can pay off, you enter a state known as insolvency. Many times, creditors will take drastic actions against you in an effort to recover what you owe them. One way they may attempt to receive their pay is by repossessing items you bought with their loans.
Protecting Yourself from Repossession
Fortunately, you don’t have to submit to the harsh repercussions of poor debt management. By filing for bankruptcy, you can protect yourself against the frightening and very real threat of repossession. Both Chapter 7 and Chapter 13 bankruptcy filings will put an immediate hold on all creditor actions against you. This is called an automatic stay. Included in this legal protection is the halting of any repossessions of your personal items, including your car and home.
If you are currently facing the prospect of having your necessary personal items repossessed, you can take action now to protect your assets. Birmingham bankruptcy lawyer Paula Greenway can help you take the necessary steps toward a successful bankruptcy filing.
If you would like to learn more about repossessions and what you can do to protect yourself from these forms of debt collection, then Birmingham bankruptcy lawyer Paula Greenway can help. Contact her today by calling (205) 324-4000.