There are a number of threats facing those who have fallen behind financially – real estate foreclosure, seizure of a car or other assets and the garnishment of one’s wages among them. By the time a creditor resorts to these remedies, the homeowner has continually failed to pay his/her mortgage in a timely fashion and the car owner/lessee has continually failed to make his/her car payments. The seizure of other assets is usually the result of your default or loss of a lawsuit, and the successful creditor/plaintiff petitioning the court to allow the seizure of yours assets. Wage garnishment is generally also a post-judgment remedy exercised by a creditor. Each of these seizures (with the exception of automobile repossession which does not require a court’s permission) is the ultimate result of the legal process. All too often, people like you, when faced with this possibility, ignore it and hope it will just go away, only to learn that hiding your head in the sand won’t stop your creditors from taking action. More often than not, it pays to be proactive. What do I mean by this? While the typical debtor probably has no defense to not making payments on the mortgage or car loan, or to a suit seeking to collect for the failure to pay credit card debt, there are avenues of relief to explore before matters reach that state. Sitting on one’s hands doing nothing is not conducive to resolving your problems.
At the first sign that a creditor intends to take such action, it is advantageous to seek legal advice to explore your options, one of the best of which is personal bankruptcy.
How does personal bankruptcy trump all other options? By virtue of the “automatic stay” that goes into effect immediately upon its filing. The “automatic stay” is a provision of the Bankruptcy Code that stops all actions threatened or taken against the property of a debtor until A FURTHER ORDER OF THE BANKRUPTCY COURT! Therefore, if a foreclosure sale is scheduled, it is automatically stayed. If your car is subject to seizure, that threat is also automatically stayed, as is the threat of a wage garnishment. If you are in the midst of expensive and intrusive litigation, the automatic stay has the same effect; that case is halted no matter where in the proceeding it is.
If you are like the millions of Americans who do not understand what options they have, do not fret! The Levine Law Office will work with you to create a solution that fits your situation. We can provide help as you work to modify your existing loans so your payments are more manageable. If you have lost your job, were recently divorced or have suffered a life-changing event and find that your mortgage payments are suddenly outside your ability to pay, you may want to contemplate letting your house go. We can help you craft a strategy that will allow you to transition from your home and leave the debt behind. In some but not all instances, it may be advisable to file a bankruptcy to address and discharge any deficiency.
The Law Office of Barry Levine – – providing clear solutions for your financial confusion for over thirty years!