No matter which bankruptcy chapter you file, the first important benefit of retaining a bankruptcy attorney is its effect of stopping collections efforts against you. From the time you retain an attorney, all but a very few creditors are prohibited from beginning, continuing or resuming any debt collection activity against you.
As soon as you retain a bankruptcy lawyer at Law Office of Daniel G. Shay, we’ll send Cease and Desist letters to your creditors and let them know we represent you and not to contact you.
California law requires consumer creditors and debt collection agencies to deal with your attorney as soon as they’re notified that you’re represented by counsel.
At Law office of Daniel G. Shay, we advise people about the best ways to stop collections before and after your petition is filed under Chapter 7 or Chapter 13. Contact us in San Diego to learn how you can get the benefits of stopping debt collections.
In our experience, many people can live under intense debt pressure for a long time, but start to think seriously about bankruptcy when they’re faced with the immediate threat of garnishment or losing their homes. Getting the full benefit of the automatic stay is therefore a major factor in the decision to file for bankruptcy.
As soon as your bankruptcy petition is filed, the Automatic Stay becomes effective and the U.S. Bankruptcy Code prohibits your creditors from any of the following activities to collect a debt that existed before the filing:
With only a very few exceptions, the automatic stay prohibits actions to collect a debt, obtain a judgment or perfect a lien, whether or not you’re entitled to discharge of the debt in bankruptcy — student loan collectors, mortgage lenders, credit card companies and the IRS must all respect your rights under the automatic stay, and they generally do.
The main exceptions to the automatic stay apply to such debts as child support or spousal support. You should also be aware that bankruptcy won’t stop a criminal prosecution against you.
Creditors can apply to the bankruptcy court for relief from the automatic stay, that is, permission to start or continue collections. Most often, a secured creditor seeking repossession of a car or foreclosure of a mortgage will consider a motion for relief from the automatic stay, and we can help you keep the automatic stay in place if the facts favor your position. Less commonly, an unsecured creditor might request relief from the automatic stay so it can try to prove your liability or the amount of a disputed debt.
For additional information about the ways you can benefit from the automatic stay of bankruptcy, contact Law Offices of Daniel G. Shay in San Diego.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.