Millions of people across the U.S. find themselves in financial distress, often through no fault of their own. From pandemic lockdowns causing job layoffs and small business failures to an expensive divorce or costly medical emergency, you may be facing insurmountable debt and the distressing risk of wage garnishment, repossession, or foreclosure. While your credit score sinks and harassing phone calls or letters from creditors increase, you may find yourself wondering how you will ever be able to dig yourself out of an increasingly impossible situation. 

It is important to know that you are not alone and that solutions exist for a financial crisis. You have legal options that can be used to resolve debt overload with its associated stress, confusion, and fear. The Law Offices of Joshua Cavanaugh can help you understand the options available to you and how they work. Attorney Joshua Cavanaugh can provide the guidance you need to assess whether bankruptcy is right for you, what type of bankruptcy will best resolve your circumstances, and how to move forward toward a brighter, more secure future. 

Find out what can be done to resolve your debt overload in a free, initial consultation with a bankruptcy lawyer in our Katy or Sugar Land office. Contact The Law Offices of Joshua Cavanaugh via our online form or at (281) 769-8179

Bankruptcy is a matter of federal law and is filed in federal court. It can give you a fresh start by helping you discharge most of your debts. It also stops creditors from taking action to collect debts from you. 

During the bankruptcy process, a legal mechanism called the automatic stay goes into effect. The automatic stay protects you as the debtor while in bankruptcy. It will stop most lawsuits from moving forward and prevents creditors from collecting debts or taking other actions. This applies to both Chapter 7 and Chapter 13 filings. 

Thus, some of the benefits include:

  • It stops lawsuits
  • It stops foreclosure
  • It prevents repossession of a car or other property
  • It stops harassing creditor phone calls, letters, and other communications
  • It cancels the legal obligation to pay most debts

Generally, when the bankruptcy is completed and you have fulfilled your obligations, a bankruptcy discharge is awarded. This discharge causes all your debts, with a few exceptions, to be canceled. For a Chapter 7 bankruptcy, debts excepted from discharge include most student loans, most taxes, child support, alimony, and debts for willful or malicious acts. The discharge in Chapter 13 is broader and includes some of these items. The discharge generally does not remove obligations in the case of a secured loan.