Modesto Bankruptcy Lawyer Blog

A: In many cases, creditor calls will stop within 2 weeks of delivered notices of bankruptcy. However, if you've been sent to collections for delinquent accounts, it may take 30 days or more for calls to stop.

When you file for Chapter 7 or Chapter 13 bankruptcy, you immediately qualify for an "automatic stay," which is a court injunction that halts the actions of creditors (with some exceptions) to collect debts from you. This means that harassing letters, phone calls and emails must stop as soon as creditors receive notices of bankruptcy from your court-appointed trustee (the person in charge of your bankruptcy filing at the court level).

Since most of these notices are delivered via mail, though, the calls most certainly won't stop the same day you file for bankruptcy. You will need to allow at least a full business week for the trustee to mail the notices, another full week for the post office to deliver them and then another few days for processing time by your creditors. Some trustees will fax the notices, however, and this can reduce your wait time.

Still, you can expect to wait up to 30 days for most calls to stop completely. During this time, you can calmly let creditors and/or collection agencies know that you have filed for bankruptcy and even provide them with your trustee's name and contact information if they wish to verify this information. This may help reduce call volume as well.

In order to receive the fastest results and to get the most out of filing for bankruptcy, it is necessary to hire a Modesto bankruptcy lawyer. A lawyer can expedite the process where possible and ensure your protection every step of the way. The bankruptcy rules in California are constantly changing, so it is imperative that you have a professional legal representative to help you stop creditor harassment and help you get back on your feet financially.

Although Modesto area foreclosure rates dropped by 3% in May 2010, this area continues to have one of the highest foreclosure concentrations in the nation. With many factories and companies in Central and Northern California closing their doors, the Central Valley is still being hit hard by the economic and housing crisis that began back in 2007.

According to the Modesto Bee, the three-county region including Stanislaus, Merced and San Joaquin counties continues to have the highest percentage of defaulted mortgages in California. Nearly 52,000 homes in these three counties alone have been foreclosed upon since the housing crisis began three years ago. This accounts for nearly 13% of all houses and condos in Stanislaus County, 15.5% in Merced County and 14% in San Joaquin County.

Bankruptcy Can Help Save Your Home From Foreclosure
With the help of a professional bankruptcy attorney, you may be able to save your home from foreclosure by filing for Chapter 7 or Chapter 13 bankruptcy. Since bankruptcy rules and laws are constantly changing, it is imperative that you have a reputable lawyer on your side to help you file all the necessary paperwork required by the federal government.

There are many services out there that promise refinancing and loan modification options that sound appealing, but only a lawyer can truly review your financial situation to recommend a viable course of action. What's more, if you try to file the paperwork yourself, you could end up disqualifying yourself from any type of bankruptcy relief.

On May 21, 2010, the Modesto Bee reported that homeowners from seven Stanislaus County cities, including Modesto, were victimized in a multimillion-dollar loan modification scheme that promised to pull underwater owners out of imminent foreclosure. Instead, the operation simply robbed residents of as much as $5,000, never fulfilling the promise of loan modification.

The scheme was known by several names, including Mason Capital Group, LLC and Gretchen Fox and Associates. It was run out of a boiler room in Southern California by a dozen or so representatives who promised homeowners that, for a fee of several thousand dollars, they could modify their current loans to keep their houses out of foreclosure. In all, nine men were arrested on 97 charges of grand theft, unlawful foreclosure consulting, tax evasion and conspiracy.

Attorney General Jerry Brown said that the men bilked some 1,500 Californians out of more than $2.3 million, many of whom resided in Modesto and surrounding cities. In many cases, not only were homeowners denied the promised loan modifications, but they also lost their homes and accrued additional debt after paying the scammers.

Brown's office began investigating the scheme in 2009 after a number of consumer complaints. Reports indicate that many of the company's high rollers were using their ill-gotten gains to pay for private school tuition, travel, entertainment, shopping and lavish personal expenses. The Attorney General's office will seek restitution for the victims.

If you are facing foreclosure on your home, consider hiring a reputable bankruptcy attorney in Modesto. Don't rely on fly-by-night scams--if it seems too good to be true, it probably is. A lawyer will follow the letter of the law to help you save your home and rebuild your credit after financial hardship.

Choosing a bankruptcy lawyer in Modesto can make all the difference in the outcome of your bankruptcy filing. According to Buzzle.com, you should take five key steps when selecting the right attorney for your bankruptcy:

1. Contact the Stanislaus County Bar Association in order to get a list of lawyers in the Modesto area. Scan your options to target lawyers who specifically work in the area of bankruptcy law (Chapter 7 or Chapter 13).

2. After you've developed a list of three to five options, research each attorney using Internet search engines. Even if an attorney doesn't have an individual firm website, you may be able to find information on newspaper websites, bar association notices or review sites.

3. Ask your neighbors and co-workers about lawyers they've used for their bankruptcy filings or other financial matters. The best way to get an accurate assessment of an attorney's ability is directly from former or current clients.

4. Set up initial consultations a handful of lawyers. Most lawyers will offer this meeting for free. Pay attention to your interaction with the lawyer - does he listen to your needs? Does he take notes? Is he responsive to your requests?

5. Once you've settled on the attorney you like, be sure to finalize a fee structure that you're satisfied with before signing any paperwork.

Bankruptcy attorneys must often handle several cases at once, so their attention may be divided. The key is to find a bankruptcy attorney who can devote individual attention to your case to get you the most efficient and effective results.