In these difficult financial times more and more of us are struggling to stay afloat financially as our bills pile up. A loss of a job, a drop in income, unexpected medical bills or soaring credit card balances can cause financial and emotional devastation. What follows in most cases is inevitable: harassing phone calls and letters, the loss of your possessions or home and a feeling of hopelessness.
Fortunately, our legal system provides an opportunity for you to take a step back, reorganize your life and assets and seek refuge from this constant financial pressure. It’s called bankruptcy. It is a legal right and provides you the time and opportunity to get yourself back on your feet.
San Diego bankruptcy lawyers are completely familiar with situations like yours and they have helped millions of people take advantage of a second opportunity to put their finances straight. Things won’t always be easy but with the right representation, personal discipline and an appropriate game plan in place a fresh start on life is possible.
You should know that once you hire a bankruptcy lawyer and file bankruptcy proceedings there is a freeze, an “automatic stay,” put in place that protects you from the harassing tactics of creditors. Bankruptcy laws provide you time to work out a plan to either reorganize or erase your debt and possibly hold on to some of your property.
These laws halt what could be a mad rush by creditors to use their legal rights to win court judgments against you for failing to make payments or pay debts and seize your home, your car or other valuable assets.
Timing is, of course, critical. The sooner you begin the process of hiring a bankruptcy attorney and sitting down and analyzing the legal options available to you the more effective the representation can be on your behalf. Many people make the mistake of liquidating their 401K plans, spending the limit of their home equity lines of credit and emptying their savings accounts in a fruitless attempt to stay afloat and only then contacting an attorney.
Trying to “get by” for the next few months usually only leads to going deeper into a financial hole in an attempt to “get by” for a few more months. Sometimes people even try to serve as their own lawyers by filing their own bankruptcy papers. This is entirely your right, but consider the odds of successfully resolving your case as a legal novice knocking heads with the extensive legal teams and experience that creditors can bring to bear on their behalf.
There are different types of bankruptcies, such as Chapter 7, which involves liquidation and Chapters 11 and 13, which involve reorganization. Hiring an experienced, aggressive bankruptcy lawyer will provide you the opportunity to sit down and determine what plan of action is best for you. No two financial situations are the same.
There is the possibility that you may be able to hold on to your home your car, some valuables and some of your retirement fund and life insurance policies, as well as Social Security benefits. What can be wiped out, or “discharged,” are debts to secured creditors, credit card debts, medical bills and some other expenses. You may be surprised at how much of what you value you may be able to keep.
There are downsides, of course. You may lose some of your assets. Your credit rating will be affected and it may take a while to rebuild it in order to once again obtain low-rate loans and credit cards. You will have to undergo credit counseling and follow certain obligations to help keep you from getting in the same dire straits again. You will have to follow through on all of the bankruptcy court requirements.
Long ago there was a stigma attached to the term bankruptcy. That is a false image. It is a legitimate avenue of opportunity to seek a second chance in situations in which businesses or individuals find themselves in financial problems that can be solved by choosing an attorney to guide them through an appropriate bankruptcy proceeding.
Some of our most famous people – Abraham Lincoln among them – and some of our largest corporations have taken advantage of their legal rights to bankruptcy and gone on to great achievements and successful results.
Bellevue Bankruptcy Lawyer : In a Chapter 13 bankruptcy, you are requesting to make the monthly payments to your creditors with the help of the bankruptcy court.