Best Business Attorneys in Alhambra, CA

Bankruptcy can help consumers and businesses eliminate their debts or repay them through the bankruptcy court. If you qualify for Chapter 7, you can wipe out (discharge) most debts you owe. If you qualify for a Chapter 13, you will file a proposed repayment plan on how to repay your debts. Some debts may be paid in full, others may be paid partially or not at all.

Wage garnishment and bank account levies are a real risk if you have gotten so far behind on monthly bills that you cannot catch up. One sure way to avoid this type of financial disaster is to file bankruptcy and stop bill collectors before your debt problem reaches that point.

A legal protection in bankruptcy known as the automatic stay stops bill collectors in their tracks. Once you have filed bankruptcy and collectors have received notice, they are forbidden from trying to collect. They can no longer call you, write to ask you to pay, ask your neighbors or employer about you, seize property, garnish your wages or take control of your bank account. If they do, they risk severe penalties from the court. Collectors are aware of this. You can actually stop creditor harassment by filing bankruptcy.

There is no restrictions on the number of bankruptcies one can file. However, you can only receive a Chapter 7 discharge once every eight years. Other rules may apply if you previously received a discharge in a Chapter 13 case.

Rest assured that at Law Offices of Liu and Hsu, P.C., we never urge people to file bankruptcy unless we are convinced it is in their best interests. If we advise you, we will not try to coerce you into any specific type of debt relief. Rather, we will do our best to help you understand what is likely to happen if you seek a loan modification, agree to a short sale of your house, sign up for a debt consolidation plan, or file Chapter 7 or Chapter 13 bankruptcy. We will also let you know what may happen if you do nothing when debts get out of control.