Los Angeles Bankruptcy - How to Stop Creditors
Almost everyone falls behind on bills at one point or another. Usually we can negotiate with our creditors, come to a temporary payment arrangement or another solution, and work things out. However, that's not always the case. For some situations, negotiating with creditors is not an option, and as the collection attempts escalate, the continual phone calls, wage garnishments, levies, or threats of repossession can cause a temporary financial setback to deepen into a personal financial crisis that is fraught with stress. Bankruptcy can help to get the collection activity under control, and allow you to have some breathing room while your debts are handled in the bankruptcy courts.
Filing for bankruptcy is an excellent solution if you need to stop creditors and end their collection attempts. When you file for bankruptcy in Los Angeles County, it invokes what is known as an Automatic Stay with regards to nearly all types of debt. This means that your creditors can no longer engage in any collection activity while your bankruptcy is in process. The phone calls will stop, repossession attempts will be halted. You can prevent levies and wage garnishment in most cases, and regardless of the outcome of your bankruptcy, during the bankruptcy process you will be free of the collection attempts entirely.
If you file a Chapter 7 bankruptcy, your debts will be discharged at the end of the bankruptcy proceedings and creditors will be permanently barred from making any collection attempt on debts that are discharged in the bankruptcy. Collection activity will resume on any debts that cannot be discharged through bankruptcy, however. And if you reaffirmed any of the debts, then the bankruptcy will not stop collection attempts that occur after the proceedings have concluded, if you fall behind again.
If you file for Chapter 13 bankruptcy, your debt will be discharged after your completed repayment plan, which typically takes anywhere from 3-5 years. During your repayment plan, the automatic stay remains in place - as long as you make your payments regularly, your creditors cannot attempt to collect on any debts that you may be behind on paying. When your Chapter 13 repayment plan is completed, any remaining debts are discharged, which means that your creditors cannot collect on the debts, even if you did not pay all that you originally owed.
This protection from creditors extends to businesses as well, which means that no matter what type of bankruptcy you decide to file, you will be protected under the automatic stay. There are a few exceptions to the automatic stay, and if you've had a bankruptcy dismissed recently, you may not be eligible for the full protection of the automatic stay - talk to an experienced Los Angeles County Bankruptcy Attorney about your particular situation. However, for the majority of bankruptcy filers, the automatic stay provides a much-needed break from the collection activities of creditors.
If you are fighting repossession, wage garnishment, levies, or even foreclosure, you may want to consider filing for bankruptcy protection. Contact our office today and speak with one of our trained Los Angeles County Bankruptcy Attorneys today. We'll arrange for a free initial case evaluation that will provide you with the information you need to make an informed decision about bankruptcy and the automatic stay protection that it provides. Don't delay - the sooner you schedule your appointment with our office, the more we will likely be able to do to help.