When you file for Chapter 13 bankruptcy in Modesto, you'll be granted an "automatic stay," which is a court injunction that stops all activity from creditors related to collections. This means that harassing phone calls, repossessions and foreclosures will all be halted immediately.
Chapter 13 bankruptcy structures your debts so that you can pay them over a three to five year period. With the help of a bankruptcy lawyer in Modesto, you can have your debts reduced and spread out over a payment plan that is feasible for you, given your level of income. Unlike Chapter 7 bankruptcy (which eliminates debts through the sale of assets), you can often keep your home with Chapter 13, which makes it more attractive to many Modesto residents.
An automatic stay takes immediate effect on most unsecured debts. It may prevent and/or halt the following: utility disconnections (for at least 20 days), home foreclosure, eviction (usually only for a short while though), collection of overpayments of public benefits such as disability or unemployment and multiple wage garnishments. There are exceptions, particularly in cases where judgments have already been made against you. For example, if a landlord already has a judgment of possession against you or alleges that you are endangering the property or are in possession of controlled substances, an automatic stay cannot prevent eviction. An automatic stay will also not stop certain IRS/tax proceedings, child support or alimony actions, criminal proceedings and loans from a pension.
A qualified bankruptcy lawyer can help you navigate the circumstances of your Chapter 13 bankruptcy filing. It's important to note that creditors have tricky ways of getting around automatic stays, so a lawyer will help protect your interests from every angle.
