One of the main purposes of bankruptcy is to relieve an honest debtor of debts, thereby providing an opportunity for a fresh start. Bankruptcy was given recognition in 1789 upon the adoption of the U.S. Constitution where it says that Congress shall have the power to establish “uniform laws on the subject of Bankruptcies” throughout the United States. U.S. Const. I, section 8, Cl. 4. Involuntary bankruptcy was the first act enacted by Congress in 1800 and voluntary bankruptcy followed in 1841. The framers of our Constitution, in their ultimate wisdom, wanted to provide the honest debtor, who got into circumstances beyond their control, with a way out so that they could rebuild their financial future.

Benefits of bankruptcy include relief from creditor harassment and relief from stress and anxiety because you are unable to pay your debts as they become due, etc.  In most situations, bankruptcy helps because you get out of debt and it provides you with a fresh start. Your debts are either completely eliminated (Chapter 7) or repaid over time (Chapter 13). By filing for bankruptcy, you, the honest debtor, are afforded a fresh start and you’re able to regain control of your financial future.

Stop Harassment

The Bankruptcy’s Automatic Stay Stops Creditor Harassment

One of the most important benefits of bankruptcy starts as soon as you file for relief under any chapter of the U.S. Bankruptcy Code. Collections come to an immediate halt, and your creditors must leave you alone. Known as the automatic stay, this feature of the bankruptcy process is essential to protecting the system of debt relief created under federal law.

To learn how you can benefit immediately from the automatic stay of bankruptcy, contact us to speak with a knowledgeable lawyer at Woodruff Law for a free initial consultation. With our convenient Marietta, Georgia location, get on track now toward restoring your financial independence.

Creditors’ collection efforts, phone calls, and creditor harassment stop immediately

You don’t need to file separate motions or affidavits to benefit from the automatic stay. All you need is your case number and our phone number. All listed creditors are notified promptly of your bankruptcy case, and most know enough to stop all collection activity.

Once in a while, you might hear from a creditor by mistake, but giving them your case number and our name will generally make them go away. Creditors who continue to pursue collections or harassment are violating the automatic stay and can be punished in court.

Stop Garnishment of Wages

Not only does the automatic stay interrupt standard collection calls and letters, it also covers the following actions:

• Any lawsuit against a debtor in bankruptcy
• Garnishment, attachment, repossession, or other collection strategies
• Mortgage foreclosure
• Eviction
• Enforcement of judgments or liens

There are a few exceptions to the automatic stay that generally have to do with child support or alimony obligations. Under some circumstances, a creditor can also ask the bankruptcy court for relief from the automatic stay to resume collection efforts. This is most common when the creditor’s claim is supported by an interest in collateral. We will negotiate with the creditor to protect your interests in these situations.

Contact one of our experienced attorneys at Woodruff Law today to learn more about your case and how to stop creditor harassment.

Protect Your Home

While all kinds of financial problems due to job loss, divorce, or medical bills can lead to bankruptcy, the event that puts many people over the edge is foreclosure of their home. That’s when debt pressure can become desperate.

Bankruptcy is an effective tool for relieving the pressure of mortgage defaults, and our attorneys at Woodruff Law have helped hundreds of people keep their homes. Contact us in Marietta to learn more about our solutions to difficult foreclosure problems.­

How does bankruptcy help stop home foreclosure?

In legal terms, mortgage foreclosure is nothing more than a creditor’s remedy to collect a defaulted debt. The automatic stay of bankruptcy stops home foreclosures in the same way it stops any other debt collection activity.

Bankruptcy law protects secured creditors, including mortgage companies. Although the mortgage company cannot continue with the foreclosure process that has been interrupted by a Chapter 7 or Chapter 13 filing, the mortgage company may have a strong argument to ask the bankruptcy court for permission (seek relief from the automatic stay) to resume or begin anew the mortgage foreclosure process.

Our experience with mortgage defaults can help you

Your legal ability to keep the protection of the automatic stay in place largely depends on how much equity you have in your home; the more equity you have, the less likely the foreclosure will continue. Questions of fact and law concerning the mortgagee’s right to relief from the automatic stay are heard and decided by the bankruptcy judge.

In our experience, the real question is: are you able to resume your regular monthly mortgage payments? If you can, we can usually negotiate the problem with the mortgage holder. Payments for defaults prior to bankruptcy can be spread out over the repayment period in a Chapter 13 bankruptcy, but the mortgagee will need assurance that future payments will be made as agreed by your deed to secure debt, or as normal.

Working out mortgage problems and preventing future foreclosure proceedings represent a major strength of our bankruptcy practice. We can help you right up to the moment of the foreclosure sale. To learn more about our approach to mortgage foreclosure in bankruptcy, contact one of our lawyers at Woodruff Law at our Marietta, Georgia location.

We are a debt relief agency. We help people file for bankruptcy relief under the Federal Bankruptcy Code.