What types of asset forfeiture can be stopped by bankruptcy?

After experiencing various types of financial obstacles, a Northern Mississippi resident can start to feel threatened. After all, the individual may be receiving calls and letters from creditors or may even be experiencing creditor harassment. In addition, the person might be facing the threat of garnishment, repossession or foreclosure. The possibility of asset forfeiture is understandably a frightening one, but there are legal solutions to these financial problems.

Those struggling with the threat of asset forfeiture will likely be relieved to know that bankruptcy can stop repossession, wage garnishment and even foreclosure. In Mississippi, relief comes rapidly since as soon as a person files for Chapter 7 or Chapter 13 bankruptcy, both repossession and garnishment actions must stop. In addition, collectors are no longer able to harass the filer. An attorney skilled in individual bankruptcy can assist a person with choosing between Chapter 7 or Chapter 13, getting the proper documentation required and starting the actual filing.

Once a person has filed, there are additional legal tools available. For instance, if one's vehicle has been repossessed within the last ten days, it is possible to get the vehicle back. A foreclosure can also be stopped via either form of individual bankruptcy. Since many who file bankruptcy are extremely concerned with keeping their personal property, it can be reassuring to speak with a qualified bankruptcy lawyer.

When it comes to wage garnishment, an attorney can make the appropriate contacts to stop the garnishment process. While filing for bankruptcy typically halts garnishment, the halting is not necessarily "automatic" and may require additional steps and follow-through. A bankruptcy lawyer is often well-equipped to end the actual garnishment as quickly as possible.

Source: Bankrate.com, "Stop wage garnishment after bankruptcy?" accessed May 15, 2015

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