Deciding to File Bankruptcy
Questions to Ask
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Are you receiving annoying calls from bill collectors at home or work?
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Have you been sued because of unpaid bills or received a foreclosure notice?
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Are you worried that your wages will be garnished?
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Are most of your debts unsecured (such as credit cards or medical bills)?
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Are you afraid your car will be repossessed?
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Are you falling behind on your mortgage payments?
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Are you worried about losing your home in a foreclosure?
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Are financial problems interfering with your work or marriage?
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Is your home in foreclosure?
If your answer is “Yes” to any of the above, we can help determine if bankruptcy is right for you.
- We can stop debt collectors from harassing you.
- We can eliminate medical and credit card debts.
- We can stop an employer from garnishing your wages.
- We may be able to stop your car from being repossessed.
- We may be able to save your home if it’s in foreclosure.
Call us today so we can help you get a new start on life.
The Purpose of Bankruptcy
We understand that you may find yourself in a position where you are unable to pay your debts due to any number of circumstances beyond your control, such as loss of a job, illness, or even a payment change on an adjustable rate mortgage. Like millions of people in the United States, you may be facing insurmountable debt and trying to decide whether filing bankruptcy is in your best interest.
Filing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy should be a last resort for anyone facing financial difficulties. It is generally better to attempt to negotiate an acceptable repayment schedule with your creditors. But sometimes we know that is simply not possible. That’s when you need an experienced bankruptcy attorney to help to determine if bankruptcy is your best option.
The important is to get good, professional advice. Bruce M. Perry has over 30 years experience as an attorney and former CPA. As a bankruptcy lawyer, he can help you eliminate your debts and protect your property. He understands the purpose of bankruptcy is to help good people through tough times.
Stopping Collection Actions
When a bankruptcy petition is filed, an automatic stay immediately goes into effect. The automatic stay is a fundamental protection that you will receive by filing bankruptcy. It gives you a breathing spell from your creditors, stopping all collection efforts, all harassment, and all foreclosure actions. It permits the debtor to attempt a repayment or reorganization plan, or simply to be relieved of the financial pressures that caused the bankruptcy.
Creditors may ask the bankruptcy court for relief from the stay under certain circumstances. A secured creditor may seek relief from the stay in order to proceed with its right to foreclose its lien against the collateral or may require you to make interim payments as a condition to the stay remaining in effect.
The bottom line is that the automatic stay immediately stops most actions against your property by a creditor. If you tired of being harassed by your creditors, are at risk of being evicted or losing property to foreclosure, or having you wages garnished, the automatic stay may provide the relief you need.
Traps to Avoid
The bankruptcy code contains some very harsh penalties for the unwary. One common pitfall is referred to as a preferential transfer. If you pay any single creditor $600 or more within the 90 days prior to filing, the transfer is considered a preference and can be set aside by your bankruptcy trustee. And the 90 days is extended to one year in the case of an insider, such as a family member. This means the trustee can go get the property paid to the creditor.
Another trap exists to the extent you give away property before filing bankruptcy or transfer any property with the intent delay, hinder or defraud your creditors. The trustee will be able to recover the property as part of your bankruptcy estate. You really do need to talk with a knowledge bankruptcy attorney before taking any action prior to filing.