Frequently asked questions

My wages are being garnished, will bankruptcy help?


Filing bankruptcy institutes the "automatic stay," which prevents all attempts to collect debts from you. Once your bankruptcy is filed, we will work to ensure that your wage garnishment stops immediately. Further, we may be able to discharge the remaining amount of that debt in the bankruptcy, so that the debt to that creditor would be gone forever.




My house is in foreclosure what happens if I file bankruptcy?


Filing bankruptcy institutes the "automatic stay," which prevents creditors from taking any further action against you until specifically authorized by the court. Foreclosure of your house must stop immediately upon the filing of your bankruptcy. Since the foreclosure is based on a secured debt, if you want to keep your house, you will have to pay for it. However, bankruptcy provides you a chance to catch your breath, as well as an opportunity to create a payment plan that will help you get caught up on your mortgage over a period of time. Often, bankruptcy can give you as long as five years to get caught up on your house.




What is a foreclosure?


A foreclosure is a legal action against a property owner where the lender seeks to take back possession of the home to satisfy a mortgage loan.




Will bankruptcy stop aggressive bill collectors?


Once bill collectors are aware of your bankruptcy filing, they are required by law to stop all attempts to collect against you. If a creditor refuses to acknowledge the bankruptcy filing and continues to try to collect against you, we can go to the Bankruptcy Court on your behalf and the court may order the creditor actually pay you damages!




Will filing bankruptcy end lawsuits against me?


Practically speaking, notice of bankruptcy filing stops further action in any other court where you are being sued for a debt you may owe. If the creditor suing you is discharged under the bankruptcy, then the lawsuit will be dismissed against you, and that debt is forever gone. Lawsuits are complex, and should be analyzed carefully by qualified counsel to help you determine the best course of action to protect your interests.




The IRS is threatening to seize assets, will bankruptcy stop the IRS?


Even the IRS is bound by the "automatic stay" that is instituted upon filing bankruptcy. The IRS may ultimately be able to collect some amount; however, the bankruptcy provides us time to fully analyze your situation and the authority to discharge any taxes that are eligible for discharge through the bankruptcy court. Your bankruptcy may allow you up to five years to pay off the taxes, while stopping all further penalties and interest. The benefit to you is that the debt actually gets paid off, and your payments do not get consumed by constant penalties, fees, and interest usually charged by the IRS.




I hear that I can "cram down" my loans and then skip bankruptcy, right?


Cramming down a loan forces the creditor to accept less than they are owed, as a matter of law. Under the right circumstances, your loan may be reduced substantially. However, cramming down a loan is a specific legal action that must be instituted through the Bankruptcy Court. Be careful of anyone claiming that they can cram down your loan without a bankruptcy filing.




Is there life after bankruptcy?


Most of our clients find that life is considerably better after bankruptcy. The opportunity to go back to "GO" and start over fresh really works! Credit can usually be rebuilt in a relatively short period of time and the burden of trying to service massive debt is gone. We can provide you guidance on how to quickly rebuild your credit again.





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