Bankruptcy protection is often the point of filing for bankruptcy. Filing bankruptcy allows to an automatic stay. That is a legal buzz word that means you are protected from your creditors when you file for bankruptcy. But protected from what? Well, everything. The bankruptcy automatic stay shields you from your creditors. This includes any efforts creditors could take if you didn’t file for bankruptcy. Lawsuits, even if already filed, are stopped. Wage garnishments must be ceased. Also included are levies, liens, foreclosures and even phone calls. All these actions must be stopped by creditors when you file for bankruptcy.
It also does not matter when you file for bankruptcy. Bankruptcy protection kicks in automatically when you file bankruptcy. Hence, the automatic stay. Some believe it is too late to file bankruptcy if you have been sued, have a judgment or your wages are garnished. That is not so. As soon as you file bankruptcy, your creditors are stopped cold. No exceptions. It is a common reason many file for bankruptcy in the first place. This is particularly so with wage garnishments, levies and foreclosure. If facing one of these creditor collection tactics, bankruptcy can stop it. Filing bankruptcy is all that needs to be done. It’s that simple. This is one of the reason retailers have been filing bankruptcy recently, as this USA Today story suggests.
Seeking bankruptcy protection may prompt a bankruptcy filing, but a discharge is a bankruptcy’s lasting effect. Completing a bankruptcy successfully results in a discharge. This means that your debts are eliminated. So the two main benefits of filing bankruptcy are the protection it provides and the debt that is discharged.
I invite you to contact my office to consider your bankruptcy options, especially if you are in need of immediate bankruptcy protection. I have been a Sacramento bankruptcy lawyer for over 20 years. I’m sure I can evaluate what options would work best for the financial fix you need. I look forward to hearing from you soon if you are in need of a fresh financial start.