Lawyers can provide clients with legal expertise and representation throughout the bankruptcy process. They can also help determine what type of bankruptcy is appropriate. This includes reviewing debts, income, assets and exemptions and helping ensure that bankruptcy filings are accurate.
Without a lawyer, many people rely on unregulated “petition preparers,” which have led to bad outcomes. Having a lawyer can stop creditors from harassing you.
1. Stop Creditors from Harassing You
Fielding calls from creditors can be one of the most stressful parts of being in debt. It is a major reason that many people consider filing for bankruptcy. Fortunately, a qualified bankruptcy attorney can help you get relief from the harassment.
Creditors are required by federal law to stop calling and harassing you the moment you file for bankruptcy. This is called an automatic stay, and it stops most actions that creditors can take against you, including foreclosures, repossessions, garnishments, evictions, and utility shut-offs.
Creditors often break the law when they harass debtors, and you may be able to sue them for violating consumer protection laws. If you are being harassed by creditors, contact a knowledgeable Long Island bankruptcy lawyer for assistance. The sooner you hire a legal professional, the faster your debt situation will be resolved. Our attorneys can also help you stop wage garnishments, freezes of bank accounts, and collection calls. We can also help you keep property that you put up as collateral for loans, such as your home or car, if you are able to pay the mortgage or loan payments.
2. Negotiate with Creditors
Creditors may try to stall negotiations in order to keep from paying their debts. This could cause a stalemate and result in creditors refusing to accept any offer you make. Lawyers can help you break through stalemates by ensuring that you understand your legal rights and the best options for you to proceed.
For example, if you used a credit card to buy a luxury item within 70 to 90 days of filing for bankruptcy, the creditors might argue that you committed presumptive fraud and won’t get a discharge (legally write off) your debts. Knowing how to handle such situations can make your creditors more willing to negotiate.
Also, if you transferred property to another person or entity in an attempt to avoid a creditor in bankruptcy, the trustee might file an adversarial proceeding to recover that property and disperse it among your creditors. A lawyer can make sure you don’t break these rules by helping you find bankruptcy alternatives that allow you to retain personal assets like a home or car.
3. Stop Debt Collections
When you have a debt problem, the last thing you want is more harassment from creditors and debt collectors. A lawyer can help you stop these activities by sending a cease and desist letter to the creditor or debt collection agency demanding they immediately stop all contact and actions that violate your rights.
A York PA bankruptcy attorney can also help you understand your options for getting back on your feet financially. They can explain how bankruptcy, or a debt settlement plan, might provide you with a fresh start and allow you to pay your debts in manageable payments. They can also evaluate your finances and assets to see what you can protect with exemptions in a bankruptcy filing and advise on the proper timing for filing to maximize these benefits.
They can also help you determine which debts are discharged in bankruptcy and which will survive it, including child support, alimony, student loans, criminal fines and taxes. They can also help you stop wage garnishments and foreclosures by stopping creditors from foreclosing on your property or taking action to get your utility services cut off.
4. File for Bankruptcy
Bankruptcy helps consumers get back on their financial footing by erasing many types of debt and allowing them to keep key assets that are "exempt" from creditor seizure (the details vary somewhat by state). A successful bankruptcy also usually discharges certain judgment debts, such as for unpaid taxes.
But it's important to take the right steps before filing. For example, it's crucial to compile accurate and complete records - including tax returns - because bankruptcy paperwork requires that consumers disclose all assets, income and debts. Failure to do so could mean that the court dismisses your case or that it denies you protection from creditors in a Chapter 7 bankruptcy.
A successful bankruptcy also enables a consumer to avoid the most damaging consequences of an insurmountable debt burden, such as wage garnishments, car repossessions, home foreclosures and telephone disconnections. It can also enable a consumer to regain or retain a driver's license if the loss of the license stemmed from an unpaid court judgment, such as a traffic violation conviction.