Legal Bankruptcy Information
What is Legal Bankruptcy?
For thousands of people each year, a legal bankruptcy filing is the answer to their debt problems.
To learn more about how bankruptcy is designed to use special legal powers to eliminate your debt and save your property, speak with a local bankruptcy lawyer.
Simply complete the form on this page for a free case evaluation with a bankruptcy attorney near you.
Legal Bankruptcy Protections
Unlike other debt relief options, bankruptcy is part of and operates within the U.S. legal system. When you file, you gain access to certain tools and processes that aren’t available anywhere else.
For example, when you file bankruptcy the automatic stay typically kicks in. This is a court order sent out to all of your creditors requiring them to stop all collection efforts. This includes:
- Foreclosure
- Repossession
- Wage garnishment
- Lawsuits
- Harassing phone calls and letters
Even if they have already started foreclosure, the bank or mortgage company will have to stop when the automatic stay starts.
And if your creditors persist with these efforts they may be held in contempt of court or they may face counter-lawsuits.
The automatic stay typically stays in place as long as your bankruptcy case is open. In some cases, this protection could last years.
Bankruptcy offers other unique legal protections.
For example, if you file Chapter 7 bankruptcy, a judge may dismiss your credit card debt while using bankruptcy exemptions to protect your home from a creditor sale.
In a legal Chapter 13 bankruptcy case, the courts may order and secure your debts in a manner unlike other outside programs. With this help, you may be able to finally get control of your finances and your future.
These tools, and others, are only available by filing bankruptcy. But before you may take advantage of this help, you must first meet certain requirements.
Before You Can File Bankruptcy
While legal bankruptcy protection is open to most people who truly need the help, there are several steps you’ll need to take before you may file.
Once your case is officially filed, you’ll need to meet more requirements, including paperwork filing deadlines, meetings and financial statement submissions.
These requirements aren’t designed to be barriers to your financial relief, but they may be complex. For example, in order to file bankruptcy you’ll need to complete a credit counseling class.
If you plan on filing Chapter 7, you may also need to pass the means test in order to be eligible.
That’s why many people ask a bankruptcy lawyer for answers when they are first considering filing. Your bankruptcy lawyer may help this go as smoothly as possible.
Simply filing bankruptcy won’t give you the debt reduction you need. You’ll need to complete the bankruptcy process.
Once you “emerge” from bankruptcy, most or all of your debts included in your filing should be resolved.
How long this process takes will depend on which type of bankruptcy you file. In some cases, you may be in and out of bankruptcy in only a few months.
Bankruptcy is governed by state and federal laws, and is overseen by judges and court-appointed trustees. Once you officially file, your lawyer may also handle court meetings with trustees, judges and creditors.
In all, the bankruptcy process may be a life changing moment for you. This may be just the fresh start you need.
To get started on that path today, complete the free form on this page to connect with a local bankruptcy lawyer or visit our Legal Bankruptcy FAQ page to learn more before you connect with a lawyer.