Many people facing financial difficulties in California realize that filing for bankruptcy may be their best option, but few realize that they have a variety of different options when doing this. A Chapter 7 bankruptcy attorney in Sacramento, for instance, could handle Chapter 13 bankruptcies as well; but these two filings are different in a variety of ways. Those who are below California’s median income or meet the “means test” will be able to file for Chapter 7 bankruptcy discharge, so it’s important that they understand what their lawyer will be doing during this process.
Delay Home Foreclosure
Many people worry about auto repossession when they consider filing for bankruptcy, but some actually forget the fact that they could lose their home as well. If a lender is attempting to foreclose on a person’s property, the attorney filing for bankruptcy will put an automatic stay into effect. This means that the lender must immediately cease collection activities.
Unfortunately, if there is enough equity in a home, the bankruptcy trustee assigned to the case may sell it to cover debts. Luckily, most people don’t have enough equity for a sale to be triggered, and if the lender files a motion to lift the automatic stay, a bankruptcy attorney can fight this in court.
Deals with Trustee
A Chapter 7 bankruptcy lawyer will also deal directly with the bankruptcy trustee assigned to the case. This will lift a time-consuming burden off of the shoulders of the person having to file. This is an absolute necessity since that individual is obviously already facing financial trouble, and devoting time away from work or other responsibilities in order to meet with a trustee is a luxury many cannot afford.
Handles Related Court Issues
Many people don’t realize that there are a variety of court-related issues when it comes to bankruptcy. Simply filing the paperwork and showing up for a day in court isn’t usually enough. As mentioned already, some creditors will attempt to have the automatic stay lifted so that they can continue debt collection, but this still isn’t the only time a court appearance may be necessary.
In some instances, in fact, a bankruptcy attorney can get their client money that they never had. If creditor harassment continues after the automatic stay has been granted an attorney can file a lawsuit against the creditor for damages on behalf of their client. Fortunately, this is a strict liability law, so it’s not even necessary to prove that actual harm occurred due to their actions. In addition, this lawsuit can cover a person’s attorney fees as well.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791