Immediately upon filing your bankruptcy case for the first time, an automatic stay in bankruptcy is put in place to stop any and all creditor action. That means that a court order is automatically put into place to stop creditors from calling. If a creditor calls after filing bankruptcy, you can demand that they stop collection calls or they will face severe penalties for violating a court order of automatic stay.
When you file for bankruptcy, you will still have to deal with correspondence from your creditors and you may have to prove your claim for any amount in dispute before it is discharged. If you are thinking about filing bankruptcy, you should talk to a lawyer about the cost of bankruptcy and the bankruptcy filing fees that are involved. In most cases, it is a very good idea to hire a lawyer if you are thinking about claiming bankruptcy.
After your bankruptcy is filed, a creditor that continues to try to collect may face an automatic stay violation; which is a violation of a court order. If you want to know more about filing bankruptcy and you are wondering “what happens to me if I declare bankruptcy?” you should schedule a free legal consultation with one of our bankruptcy lawyers. We handle bankruptcy cases in California and our bankruptcy attorneys will advise you whether filing Chapter 7 bankruptcy or filing Chapter 13 bankruptcy makes more sense for you.
What are the Benefits of Filing for Bankruptcy?
Filing Bankruptcy is a very quick and efficient way to eliminate debt, stop a foreclosure, and stop any creditor action such as a collection lawsuit, wage garnishment, IRS debt collection, liens and even auto repossessions.
Benefits of filing bankruptcy, besides automatic stay, generally include improving your credit score and rebuilding your credit. You may apply for credit cards after bankruptcy and qualify for secured loans as well. As a rule of thumb, you are not able to wipe out debt through bankruptcy more than once every 8 Years. If you are thinking about filing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy you should call and set up a free consultation with one of the bankruptcy lawyers at our Los Angeles law firm today.
Life After Bankruptcy
Life after filing bankruptcy is usually less stressful. You will stop receiving calls from creditors due to the automatic stay, you can avoid foreclosure, and you can take the time to get back on your feet and create a game plan that works for you. If you are looking for a Los Angeles bankruptcy lawyer who can advise you about credit after filing bankruptcy and how to rebuild credit, our bankruptcy attorneys can help. If you have questions about paying your mortgage after filing bankruptcy or qualifying for a new home or car, you should call and talk to our Los Angeles bankruptcy attorney for free at our Los Angeles law office today.