Bankruptcy Is Not a Bad Word.
We know how bankruptcy helps people in debt. People from all walks of life. We have fought to get the protections bankruptcy offers for hundreds of honest, hardworking people in San Jose and the Bay Area. Nearly everyone in our society carries some debt. There is no shame in that, and bankruptcy is not a bad word. Many of us are only a job loss, a medical emergency, or a collection lawsuit away from crushing debt.
In the following pages we explain how bankruptcy helps. Bankruptcy law provides serious legal protections for consumer debtors from all creditor collection efforts. When an individual or business files for protection under Chapter 7, Chapter 11 or Chapter 13 of the Bankruptcy Code, the law immediately protects the person or business from all manner of collections by creditors. The Automatic Stay of bankruptcy, as it is known, immediately does all of the following:
- Bankruptcy stops foreclosures
- Bankruptcy stops lawsuits
- Bankruptcy stops wage garnishments and bank levies
- Bankruptcy stops collections, phone calls, demands, and creditor harassment
- Bankruptcy stops car repossessions and evictions
Apart from the immediate relief of the Automatic Stay, bankruptcy protection provides debt relief by allowing for either discharging entirely or discharging a portion of general unsecured debts like credit card debts, medical debts, unsecured personal lines of credit, personal loans, payday loans and cash advances, judgments resulting from car repossessions and credit card collections suits. Even non-priority income tax debts can be discharged in bankruptcy.
Chapter 13 Bankruptcy helps with tax debts by allowing only priority (newer) taxes to be paid while allowing non-priority (older) tax debts to be discharged in whole or in part.
Chapter 13 Bankruptcy can also help permanently prevent a home foreclosure by allowing the homeowner to cure her back mortgage payments, or arrears, through a Chapter 13 payment plan over five years.
Chapter 13 can also lower the interest on a car loan and, if the loan is a title loan or a purchase loan older than 2.5 years, reduce the balance owed on the car!
Read on to discover the many ways that bankruptcy protection can help you get out of debt and get on a new path toward financial freedom!
Our San Jose bankruptcy attorneys are here to help you. Call us today for a free consultation so we can get started on your new life.
