Tag Archives: Automatic Stay

The Ugly Truth About Debt Settlement Companies and Why Bankruptcy Is Often a Better Option

The National Association of Consumer Bankruptcy Attorneys (NACBA) recently published a consumer alert report entitled “The Debt Settlement Trap: The #1 Threat Facing Deeply Indebted Americans,” which detailed the stories of debt strapped consumers who have fallen prey to the numerous scams peddled by so-called debt settlement companies. You’ve probably heard their claims on TV […]

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Make Sure Your Bankruptcy Attorney Is Willing to Defend the Automatic Stay

Some creditors just don’t get it. They just keep calling and harassing you with demand letters even after you have filed bankruptcy. Sure, the Automatic Stay contained in Bankruptcy Code section 362 is supposed to prevent creditors from continuing with all such collection efforts, but whether due to reckless disregard for bankruptcy law, pure sloppiness, […]

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Why Do Big Banks File Frivolous Motions for Relief from Stay in Chapter 7 Bankruptcy Cases?

I’ve written several articles over the years explaining the Automatic Stay in Bankruptcy, but before I get to the subject of this post—when a creditor’s Motion for Relief from Stay is frivolous—a brief refresher on the Automatic Stay is in order. Bankruptcy Code section 362 grants a debtor in bankruptcy an immediate and powerful protection […]

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Reaffirm a Home Equity Loan in California Bankruptcy? Are You Kidding?

Every now and then my San Jose bankruptcy law firm still gets a fat letter from one of the Big Banks soliciting to try to convince us and one of our bankruptcy clients to reaffirm a California home mortgage loan. If I’m in a relatively good mood that day, I’ll scan the bank letter and […]

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Making Voluntary Payments to Student Loans During Chapter 7 Bankruptcy

From time to time, I receive a form letter from a student loan servicing company concerning one of my Chapter 7 bankruptcy clients that goes something like this: “We have received notice that your client has filed for Chapter 7 bankruptcy protection. In response, we have applied a forbearance to the student loan listed below. […]

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Stopping a Wage Garnishment by Filing Bankruptcy in San Jose

Every individual who files personal bankruptcy, whether Chapter 7 or Chapter 13, gets immediate protection from the collection efforts of his creditors. This immediate protection is the Automatic Stay provided in section 362 of the Bankruptcy Code, which prevents, for so long as it remains in effect, the garnishing of the bankruptcy debtor’s wages (except […]

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Do I Need to Answer a Lawsuit if I’ve Decided to File Bankruptcy in California?

As with so many other questions pertaining to bankruptcy law, the best answer to the question of whether a person intending to file bankruptcy must file an Answer to a new civil suit is: “it depends.” I am often asked by the prospective client considering filing personal bankruptcy whether he should first go ahead and […]

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Does My Spouse Have to File Bankruptcy with Me?

The short answer is: No. Spouses do not necessarily have to file bankruptcy together. I’ve represented scores of Bay Area bankruptcy clients over the years where only one spouse has chosen to file personal bankruptcy. However, there are a number of important caveats that we as bankruptcy attorneys must discuss with any married debtor considering filing […]

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The Bankruptcy Automatic Stay Stops Bully Collectors in Their Tracks

Whether you have even considered filing Chapter 13 or Chapter 7 bankruptcy yet, if you have ever been more than 90 days late paying a credit card, then you may have already suffered the indignity of an aggressive bill collector’s call. If you haven’t yet, but you can’t make all your credit card payments, you’ll […]

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Debt Settlement Programs Don’t Keep Credit Card Companies from Suing You

Once or twice a week, I meet with a prospective bankruptcy client who has called us, frantic, because a credit card company or some third party collection bullies for a credit card company have served her with a lawsuit summons. “I don’t understand why they would sue me,” the debtor will complain. “I’ve been paying […]

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