Charlottesville bankruptcy help: 434-979-7900

Culpeper bankruptcy help: 540-827-4023

Can Bankruptcy Help? - Charlottesville and Culpeper

Question: I am behind on my bills and creditors call me on the phone a lot. It is very stressful. Can filing bankruptcy stop these harassing calls?

Yes. When you file for bankruptcy, creditors must stop calling you. In fact, if they do call, leave messages for you, or contact you by mail, they are violating a court order and you may be able to collect damages from them.

Question: I became sick and did not have health insurance. Now I owe thousands of dollars in medical bills. Can bankruptcy help me?

One of the most common reasons I see for filing bankruptcy is the situation you describe here.  The answer is that medical bills can be wiped out or drastically reduced when you file bankruptcy.  Depending on the type of bankruptcy you file it is possible that you will not have to pay anything at all, or that you will only pay a portion of what you currently owe.  

If you have significant medical bills, it is definitely worth a phone call to set up a free consultation so we can discuss what your options are.

Question: My home is being foreclosed on. Can filing bankruptcy stop the foreclosure?

If you want to keep the house that is being foreclosed on, filing a Chapter 13 bankruptcy can stop a pending foreclosure sale. When you file bankruptcy, the judge will issue an Order for Relief, which creates an “automatic stay.” This “automatic stay” means that creditors – including the bank that holds your home’s mortgage – must immediately stop trying to collect from you. The stay postpones the foreclosure until further order of the court.

After the automatic stay is put in place, you and your attorney will come up with a plan for your bankruptcy which will include paying back a reduced portion of general unsecured debts such as medical bills, credit cards, payday loans, utilities, and other bills. Paying back a portion instead of the total amount of these debts will free up cash which can then be use to cure your mortgage default and other non-dischargable debt such as taxes or child support. Once the plan is in place and approved by the court, so long as you make your planned payments and keep your post-filing mortgage payments current, in three to five years (depending on your plan) you should be debt-free with the exception of your mortgage.