20 Feb Impediments to the Immediate Relief of Bankruptcy
By filing chapter 7 or chapter 13 bankruptcy you can obtain immediate relief from your creditors. Creditors are prohibited from collecting or harassing a debtor after the filing of a bankruptcy pursuant to 11 U.S.C. Section 362 of the bankruptcy code. During my practice in bankruptcy law, I have experienced very few cases where creditors don’t honor the automatic stay.
Given the fact bankruptcy can provide some immediate relief from creditors the question then becomes why don’t people use the power that the founders of our country have provided?
1. In most cases bankruptcy has been so demonized that most individuals will avoid it like the plague. The best thing to do is to talk to an experienced bankruptcy attorney if you are experiencing debt problem. At Bolinske Law we offer a free consultation to discuss concerns and learn the facts.
2. Many individuals use bankruptcy as a last resort. While I am not advocating bankruptcy as a first option, it should not be a last resort. First steps can include doing a debt assessment to determine whether a change to expenses can lead to reduction of debt in a reasonable length of time or whether other options need to be considered.
3. Inability to pay for a bankruptcy or too broke to go broke is another obstacle. By waiting too long creditors may have obtained a judgment against you. Through judgment a creditor can garnish wages, levy bank accounts and force payment. LEAVE YOURSELF A WAY OUT: One of the best ways to ensure you have the resources to file for bankruptcy is not go down with the ship. In every case that I have filed my clients tried hard to pay back their creditors even going so far as to drain savings, borrow money from family and friends, use retirement savings, and sell assets. The problem with doing any of those things is they are depriving you of a way out. It is important to take a good look at your financial situation early and often. Take a look at monthly expenses and monthly income. If the difference between those numbers does not allow you to pay back creditors
For many individuals having problems with debt bankruptcy should be an option. When you meet with an attorney it should be a stress free no pressure experience. The attorneys at Bolinske Law genuinely care and want to help. We are not here to “sell” you on bankruptcy, we are here to discuss your options and give you information.