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The most immediate benefit of filing a bankruptcy is the concept of the "automatic stay". Pursuant to the Bankruptcy Code, the filing of a bankruptcy petition triggers an automatic stay of all legal proceedings and collection efforts against you. The stay is, in effect, an order of the bankruptcy court sent to all of your creditors advising them that a bankruptcy has been commenced. Pursuant to the stay, creditors are warned that they will be sanctioned if they try to collect money or property from you without leave of the bankruptcy court. If your home or other real estate is in a foreclosure situation, even if a sale is imminent, the stay will stop the sale. The stay will also stop a foreclosure action in its earliest stages, and prevent the lender from moving forward with a foreclosure without leave of the bankruptcy court. Because the automatic stay is such a powerful tool, the lifting of the stay is not freely granted, but may occur if you are not fulfilling your obligations.

When your banktruptcy is filed, our attorneys will immediately contact your lender or its representative and provide it with your bankruptcy information. The automatic stay will remain in effect until the conclusion of the bankruptcy case, or until lifted by the Court. If you have filed under Chapter 13 and your intention is to reinstate your mortgage, it is imperative that you begin making mortgage payments again in the month following the filing of your petition. The bankruptcy court will lift the automatic stay and allow the lender to proceed with its foreclosure if you are not making payments as promised. Likewise, in a Chapter 13 case, it is imperative that you begin making the monthly Plan payments to the Chapter 13 Trustee in the month following filing. If payments are not timely made to the Chapter 13 Trustee, the Court may dismiss the case, which will also have the effect of lifting the stay and allowing creditors to proceed with collection efforts, including foreclosure. When the stay is lifted, or if the case is dismissed, it is possible that you may not be able to file for bankrutpcy again, and get the benefit of the stay, for the next 180 days. 

Our attorneys will be happy to explain how the stay works, why the stay might be lifted and what must be done while the bankruptcy is pending to assure your continued protection. Please be sure to ask our attorneys about the possibility of a loan modification in conjunction with, or as an alternative to bankruptcy as another way to save your home.

Many people agonize over the decision to seek an attorney to discuss bankruptcy options because they are too embarrassed to admit to financial difficulties or talk about the state of their finances with a stranger. Debt has taken over their life and it seems that there is no relief in sight. Feelings of regret and shame are common to those who contemplate bankruptcy. However, bankruptcy should not be looked upon as a failure; it should be looked upon as a new beginning. Though many fear bankruptcy and its stigma, it can provide a much needed fresh start and get you back on the road to financial recovery. Moreover, filing bankruptcy may be the only way out of debt for some, or may not be an option for others. Consulting with an attorney can help you decide whether or not bankruptcy is right for you and your circumstances.

The first step in deciding whether or not bankruptcy is the right decision for you is to schedule a free consultation with one of our experienced bankruptcy attorneys. We can assist you in gathering the documents needed to provide us with the information needed to make a determination regarding whether or not you would benefit from a bankruptcy filing and/or which chapter best suits your financial situation and preferences. We may ask you to provide us with such financial information as credit card and banking statements, pay stubs, mortgage and automobile loan balances, as well as other documents needed to assist us with understanding your finances. Getting an accurate accounting of assets and debts will ensure that we will have the information needed to properly advise you whether or not bankruptcy is right for you or if there is another solution better suited to your unique financial situation.

If you are contemplating bankruptcy, please don't hesitate to contact our office to schedule a free consultation with one of our experienced bankruptcy attorneys who can answer your questions and meet with you to discuss your finances to help you find the best solution for your financial difficulties. 

We know the decision to consult with an attorney about bankruptcy is a hard decision to make. Rest assured that our attorneys and staff will treat you with the sensitivity, respect and dignity that you deserve during this most difficult time. Please contact us today to schedule your free consultation and begin your journey to financial recovery.

There are alternatives to bankruptcy that consumers can choose. Most will require some outside assistance, from a lawyer or credit counselor. Lawyers can be the best first choice to consult because you can get started with a free consultation. Simply click on our website or call our firm for instant relief, and be on your way to better money management. Use your free consultation to obtain answers to questions about bankruptcy and its effects, or to find out how to get started with debt settlement actions.

One thing you can try, if you have no wages and no assets, is to simply do nothing. This applies to unsecured loans only, however, because you have nothing at risk to lose. With unsecured loans, your lender has no viable alternative for collections other than to keep calling you. In that case, there are consumer credit laws that protect you from abusive collection efforts. If you do nothing, your credit report history should clear out of these unpaid debts after seven years. If you pursue a bankruptcy, it will remain on your record for ten years. 

Another thing to try is to manage your money better. Obtain more income, and cut expenses so you can apply more to your debt repayments. Negotiate with your creditors and try to work out better repayment terms, or lower interest rates. This is another case where our lawyers may be able to assist you by making the requests for you. 

A formal debt consolidation loan may be an option if you have collateral and are not severely behind in payments. This is where you borrow on a new loan large enough to payoff the other debts, so you only have one debtor, and a smaller overall payment at lower interest. Over time, the entire debt will be repaid faster. Our lawyers can help you formulate this plan and put together your written proposal.

Other out of court ways to settle old debts include getting a new loan or credit card and balance transfer your bad debts to this new loan. You can refinance your existing loan, borrow from friends or family, or borrow from your savings. Using our lawyers can be one way to avoid the negatives of making a debt consolidation and to restructure your debts without resorting to bankruptcy. Click through on our website for additional information, or to set up a free consultation.