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Six Things Everyone Should Understand About Bankruptcy

Six Things Everyone Should Understand About Bankruptcy

  When most people encounter financial difficulties, they view bankruptcy as an opportunity to build a new credit history. As a result of the coronavirus pandemic and its ensuing chaos, an unprecedented number of people are finding themselves facing financial difficulties and considering filing for bankruptcy. The following reviews some critical things that you should understand before you pursue bankruptcy as a method of taking control of your debt.   Bankruptcy is Not Embarrassing[...]

When can You Stop Paying on Debts After Filing for Bankruptcy?

If you plan on filing for bankruptcy, you are likely left wondering various questions including when you can stop paying creditors. The short answer is that you should not. Despite this, many people stop paying creditors shortly before filing for bankruptcy and use this money to pay for the bankruptcy filing costs. If you intend on filing for bankruptcy but are not sure exactly when you will do so, however, it is common to end up wondering if it is okay to stop paying your debt. While there is n[...]

How Bankruptcy Impacts Existing Judgments

People in Florida who have existing judgments or liens often hesitate to file for bankruptcy. After all, many of these people believe that these types of legal instruments are final and that it is too late to pursue a good credit report. This is a misconception, however. The following reviews some important information to consider about the impact that filing for bankruptcy can have on existing judgments. Impact of Bankruptcy on Pending Judgments After filing for bankruptcy, an automatic stay is[...]

Wage Garnishment and Bankruptcy

  By the time many people decide to file for bankruptcy, their creditors have begun to attempt to obtain repayment on outstanding debts. In some cases, these debts are so large that the debtors are not able to continue making payments, which results in creditors seeking legal action. One of the most common ways that creditors attempt to collect what they are due is by garnishing debtors’ wages. How Wage Garnishment Works Wage garnishment occurs when a creditor obtains an order from a jud[...]

Bankruptcy and Wage Garnishment

An overwhelming number of individuals live from paycheck to paycheck. If you are one of these people, any disruption in your wages can place you in a dire financial situation. To make matters worse, if you are facing a wage garnishment, it is possible that creditors can take as much as a quarter or more of your wages. Many people discover that wage garnishments to this degree make it difficult to pay the bills. The Value of Automatic Bankruptcy Stays Immediately after filing for bankruptcy, you [...]

How Creditors Must Respond After You File for Bankruptcy

After you file for bankruptcy, all of your creditors must stop calling you in an effort to collect compensation. Unfortunately, creditors do not always follow the rules, and some people report that they are harassed by creditors even after declaring bankruptcy. If you are experiencing difficulties with a creditor, you should not hesitate to contact an experienced attorney who can help make sure that your rights are protected. The Value of Automatic Stays An automatic stay refers to a legal acti[...]

Automatic Stay to Prevent Creditor Lawsuits

If you’ve fallen behind on credit card, mortgage, or other payments on debt, it’s easy and natural to ignore the problem. This is particularly true if you don’t currently have the money to pay off the debt. You might be thinking if you just wait and ignore the collection calls, eventually you will have the funds to pay off the debt. That strategy does buy you time, but at the expense of interest accruing and of stress. And, unfortunately, eventually the creditor usually gets fed up and [...]

Enforcing the Automatic Stay

The decision to declare bankruptcy is not an easy one and many find themselves feeling overwhelmed or stressed by the decision or the process.  In most cases, the stress is two-fold: financial stress and emotional stress.  The emotional stress is often caused by, or at least exacerbated by the near constant reminder of debt from creditor calls and letters. The Bankruptcy Code has within it a provision that often helps alleviate some of this stress once bankruptcy is declared: the automatic sta[...]

Debtors Win Against Creditor Harassment

Though bankruptcy is often thought of as a negative, it is better thought of as an opportunity to stop creditor harassment.  An opportunity provided by the law because of a belief that sometimes debt can reach a point where it is nearly debilitating and that individuals and businesses can benefit from a fresh start. Perhaps the most stress relieving privilege that bankruptcy grants is the automatic stay.  As discussed in earlier blogs, the automatic stay is an automatic court order preventi[...]