Don't get down about growing past due balances or creditors calling at all hours, credit card debt or overdue medical bills. If you take immediate action, you can get help before it's too late! You may qualify for protection under the U.S. Bankruptcy Code, and filing bankruptcy may help you regain control of your financial future.
There are two main options offered by the U.S. Bankruptcy Code for people in financial crises. For some, filing Chapter 7 bankruptcy offers the opportunity to discharge unsecured debts and get started on the path back to financial stability. For others, filing Chapter 13 bankruptcy allows the repayment of secured debts like their mortgage debt over time.
You should know that filing bankruptcy is just one among many options for recovering from financial setbacks. In order to make the best decision for your situation and future, you need to educate yourself about all your options for filing bankruptcy and then take action as soon as possible. At Total Bankruptcy, you will find hundreds of pages of bankruptcy information that you can use as a resource for learning more about the U.S. Bankruptcy Code and your legal options.
Despite our many informational resources on filing bankruptcy, there is no substitute for the advice and guidance of an experienced bankruptcy attorney. At Total Bankruptcy, we provide a fast and easy way to find a bankruptcy lawyer in your area. Our sponsoring bankruptcy attorneys can help you find an objective point of view on your current financial situation, separate the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy, and help you move confidently forward as you make your next move, whether that does or does not include filing bankruptcy.
Start an "Automatic Stay" - It's the Most Powerful Weapon in Bankruptcy
The most immediate effect felt by filing bankruptcy is the automatic stay. After filing bankruptcy protection, the automatic stay immediately stops most creditors from contacting you and collecting on debts. And the relief doesn't end there! The automatic stay also prevents garnishment, lawsuits, and repossession (including foreclosure).
Perhaps the most comforting part is, if a creditor should decide to ignore the automatic stay and continue hassling you, he will face serious consequences.
You can only receive a chapter 7 bankruptcy discharge once every eight years, so be careful about the amount of debt you take on after you chapter 7 case has been discharged. Chapter 13 bankruptcies can be filed at any time.
The law has changed under BAPCPA on how bankruptcies can be filed and eligibility for chapter 7. Now that the BAPCPA has gone into effect, it is extremely important that you consult with an attorney in order to determine your eligibility to file a chapter 7 case.
For more on how the automatic stay works after filing bankruptcy, continue reading at Complete Bankruptcy Site.
Very Important to Remember If you are going to file a chapter 7 case, lawyers can only accept installments for the attorney's fee prior to filing the chapter 7 case. As noted above, if you have not fully paid the agreed fee prior to the filing of the bankruptcy case, your lawyer has to waive the balance in order to continue representing you because the lawyer cannot be your creditor. A lawyer who seeks to collect the unpaid portion of the prepetition attorney's fee after the chapter 7 case has been filed is violating the automatic stay, which means they can't pressure you to pay them the balance of the prepetition attorney's fee after you file.
