This video explains one of the major benefits of filing for Chapter 7 bankruptcy: The automatic stay on all collection actions. A stay is a court-ordered freeze on all creditor phone calls and attempts to get you to pay back your loan, which takes effect on the day you file your paperwork with the Bankruptcy Court.
Around twenty days after your filing, a bankruptcy trustee will schedule a meeting between you and your creditors, where he or she will explain the logistics of the debt discharge process. Then the discharge plan will be filed with the court, and your unsecured debts will be forgiven. Click play to learn more.
Dixon & Johnston, P.C. is a St. Louis-area law firm with offices in Missouri and Illinois. If you are thinking of filing for bankruptcy, consult one of our attorneys to help determine if this course of action is right for your specific financial situation. Call our Belleville office at (618) 233-1103 to schedule your free and confidential case evaluation.
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