What is bankruptcy? …. Asking ‘for a friend’

Bankruptcy sounds scary, but for an experienced practitioner like me, it’s a mundane occurrence.  There are so many people I meet who could benefit from bankruptcy;  I’m talking LIFE-CHANGING benefits.  Unfortunately, most people are too nervous or embarrassed to even ask.  The perceived stigma and a general lack of understanding prevent a lot of people from getting the help and relief they desperately need.

First of all, there is no reason to be ashamed or embarrassed.  Anyone can fall on hard times, and the types of events that typically precipitate a bankruptcy are usually unforeseeable and unavoidable.  The most common examples are divorce, disability or death of a spouse.  These kinds of events can drastically affect household income without warning, making it nearly impossible to keep up with bills and expenses.  Bankruptcy law was created to give a second chance to folks who’ve fallen on hard times.  Even if your debt is due only to poor spending habits and misuse of credit cards, relief is still available.  We all make mistakes.  The important thing is to learn from the experience and move on.  Bankruptcy makes that possible.

Second, there’s nothing to be afraid of.  Millions of people file bankruptcy every year.  With the guidance of an experienced bankruptcy attorney, there is no reason to fear the process.  Despite what you may believe, bankruptcy is a safe and gentle process that’s completed in about 4 months in most cases.  No, you won’t lose your car and home; Yes, you will get credit again; and No, you won’t have to go to court and stand before a big, scary judge.  However, every case is unique and there are exceptions to every rule.  That’s why the most important thing is to talk with a professional who knows the rules, and can guide you through the process safely.

Finally, bankruptcy relief is both immediate and extraordinary.  The second your petition is filed with the Court, you are protected by federal ‘automatic stay.’  With very few exceptions, your creditors will be required to immediately suspend collections: wage garnishments are returned, bank levies are released, lawsuits are dismissed, foreclosures are suspended and sheriff’s sales are adjourned.  This protection remains in place for the duration of the case, unless the Court grants a special exception at the request of a creditor, which is a rare occurrence.  At the end of the case, the Court will enter an ‘Order of Discharge’ which makes these protections permanent, with a few exceptions.  The Order of Discharge also declares your debts ‘forgiven’ and creditors are forever barred from attempting to collect.

If you’ve been struggling with debt, know that relief is available.  Bankruptcy wipes the slate clean, offering a fresh start and a second chance.

Still unsure about Bankruptcy?  Read through many Frequently Asked Questions:  https://leclawonline.wordpress.com/2018/06/14/bankruptcy-faqs/ 

Dispel all of your bad notions about Bankruptcy!  Read Bankruptcy Myths Debunked!: https://leclawonline.wordpress.com/2018/12/18/bankruptcy-myths-debunked/




Call: (908) 353-6700    Text: (908) 266-4843    E-Mail lcapece@leclawonline.com

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