Bankruptcy Attorney

A Bankruptcy Attorney is so much more than the discharge of debt. If you have been doing your bankruptcy research, you may have come across “automatic stay” a couple of times now. The automatic stay is just as important as the discharge you receive at the end of your bankruptcy. When you begin your bankruptcy petition the law protects the debtor from any debt collecting activity. A bankruptcy is a way of saying to your debtors that you are doing something about the debt you have incurred. Though you may not be able to pay off all your debt, a bankruptcy is a sign of your initiative to pay something back. For this reason, the government prevents any debt collector or creditor from pursuing debt collecting activities while you are trying to figure out how you will pay them back.

A debt can either be paid back in part through a Chapter 13 or may be discharged through a Chapter 7 liquidation. Through a Chapter 13, you are capable of paying back your debt over a three to five-year program In Chapter 7 you essentially pay back with your property. When you pay back with your property, a United States trustee will be in charge of selling your items and using the gains to pay back the creditors you owe. In both instances, as soon as you submit the paperwork for a bankruptcy, you are protected by the automatic stay laws. It does not matter if you are filing under a Chapter 7, a Chapter 13, or a Chapter 11, debtors who file through any chapter in bankruptcy will be protected by the automatic stay losangeles-bankruptcyattorney.com .