In many cases, bankruptcy is the absolute last resort in the process to save your house. Nevertheless, in certain circumstances this may be the only viable solution for some of our clients. If CDA Law Center completes our analysis of your financial situation and we determine a Loan Modification is not a viable solution for your unique circumstances, we may recommend this as an alternative to get you’re the protection you need.
In its most basic form bankruptcy is a consumer protection law. It is a federal process which allows consumers to have their qualifying debts forgiven. The law recognizes that bad things sometimes happen to good people, and consumers sometimes simply do not have the ability to comply with creditors' repayment demands. California bankruptcy laws are based on forgiveness rather than punishment. Bankruptcy does not seek to deter or regulate certain behavior as other laws do; it simply recognizes that there are sometimes circumstances beyond the consumer's control which can only be addressed through the cancellation of debt.
Filing for bankruptcy puts into effect an automatic stay, which stops creditors from trying to collect any debt from you. The automatic stay immediately stops creditor phone calls, collection letters, wage garnishments, lawsuits, bank levies, and all other types of harassment, intimidation and scare tactics by creditors.
Once a bankruptcy case is successfully completed, the consumer receives discharge information from the Bankruptcy Court. A Discharge is a legal release from debts. Creditors are left with no legal cause to contact you or pursue debts listed in the bankruptcy documents.
There are two common ways for the typical consumer to file for bankruptcy, Chapter 7 and Chapter 13. Chapter 7 is the most common type of bankruptcy. It allows a consumer to discharge debts completely through a relatively short process. Chapter 13 is a federal debt consolidation plan which allows you to rearrange your financial affairs and repay just a portion of your debts. In most cases, the idea is to allow you time to get back on your feet.
If Consumer Debt Advocate cannot file your Bankruptcy, we will be happy to refer you to our network of experienced and quality Bankruptcy Attorneys who can handle your case.