Dedicated Griffith Bankruptcy Attorneys
Bankruptcy is one of the most effective ways to eliminate, reduce or restructure the debts that you owe your creditors. Many people in Griffith have used bankruptcy to their advantage and have liberated themselves from the shackles of their debts. Whether you need to file for Chapter 7 bankruptcy or file for Chapter 13, the professionals at the Law Office of Kevin M. Schmidt, P.C. are ready and available to help you.
Helping You Make The Most Out Of Your Bankruptcy
Filing for bankruptcy offers debtors a lot of benefits. For instance, filing for Chapter 7 bankruptcy allows eligible debtors to discharge all of their dischargeable debts. In another example, filing for Chapter 13 bankruptcy allows debtors to restructure their outstanding debts to have more manageable terms. Regardless of the type of bankruptcy you file for, you can also get the added benefit of an automatic stay on any and all collection efforts that are being made against you when you file for bankruptcy.
How Bankruptcy Filing Automatic Stays Can Help You
Under 11 U.S.C. Section 362 of U.S. bankruptcy law, when a debtor files for bankruptcy, the bankruptcy filing automatically serves as an injunctive stay against your creditors. This can be a huge benefit to a debtor, particularly if the debtor has suffered through harassment from their creditors about repayment. Most collection activities are stopped by a bankruptcy filing, but there are a few types of collection activities that are not stopped by a bankruptcy filing as well. As a general rule, collection efforts concerning the following are stopped by the automatic stay of a bankruptcy filing:
- Debt collection efforts that predate the bankruptcy filing. Upon filing for bankruptcy, creditors can no longer seek to collect on debts that predate the bankruptcy filing. This means that collection calls and demand letters for overdue debts will stop coming to the debtor.
- Judgements against the debtor. If creditors have obtained a judgement against the debtor, all efforts to enforce the judgement must be stopped. Judgement enforcement efforts that are stayed by a bankruptcy filing include levies, judgement collection remedies, and garnishments.
- Legal actions to obtain possession of the debtor’s property. Sometimes creditors seek to repossess or obtain legal title to the debtor’s property as a way to collect on the outstanding debt. But filing a bankruptcy proceeding will put a stop to any action that aims to take possession or control of the debtor’s property. Examples of these kinds of proceedings include mortgage foreclosures or the seizure of the collateral for a debt.
- Litigation against the debtor. A bankruptcy filing will put a stop to any litigation against the debtor that was commenced before the bankruptcy filing. Continuations of any legal proceeding against the debtor commenced after the bankruptcy filing will also be stayed.
- Liens against the debtor’s property. Upon filing for bankruptcy, no liens can be created, perfected or enforced against the debtor after the bankruptcy filing date for claims that arose before the bankruptcy filing date.
Reach Out to Us for Bankruptcy Help
There are many benefits to filing for bankruptcy, and we can help you sort out which form of bankruptcy will offer you the most benefit. The bankruptcy lawyers at the Law Office of Kevin M. Schmidt, P.C. can help you assess the pros and cons of filing for bankruptcy. Reach out to us today for professional assistance.