DISCLAIMER: The information on this website is meant for educational and informational purposes only and is not intended to constitute legal advice or financial advising. Every person’s situation is different. We cannot and do not guarantee results based upon our previous clients’ cases. If you need solutions to your financial problems, we are happy to give you a free consultation. Call now to schedule your free 30-minute consultation with one of our attorneys.
Yes, bankruptcy can usually stop a garnishment. But time is of the essence.
Wage garnishment starts when a Garnishment Summons is filed. If we file bankruptcy for our client before the court date on Garnishment Summons, we can usually get the money that has been garnished back in our client’s pocket. Not only that, we can also stop them from taking any additional money out of our client’s paycheck.
When a person files bankruptcy, a creditor may not contact them without prior court approval (which almost never happens). In other words, the collections calls stop.
What’s more, after filing bankruptcy, if a creditor contacts the person who filed or takes any action against them or their property without first getting an order from the court, they are likely violating the bankruptcy laws. If this happens, we will send that creditor a “cease and desist letter” to make them stop. If they continue contacting the person, we can then sue that creditor and force them not only to cease contact but also to pay damages.
Bankruptcy can often help people who have medical debt. In fact, at Slayton Law, we deal with this situation quite often.
Additionally, a hospital supported by public funds (such as UVA Medical Center) cannot deny treatment because a patient is in bankruptcy or has discharged a debt owed to that hospital in the past.
Private hospitals, on the other hand, can deny treatment, but will usually treat the patient if he or she has health insurance.
The answer to this question is usually “yes.” A Chapter 13 bankruptcy can stop a pending foreclosure sale and save the person’s house.
Filing bankruptcy creates an “automatic stay,” which means that creditors – including the bank that holds your home mortgage – can no longer collect from you. The “automatic stay” also postpones the foreclosure until further order of the court.
If your house is being foreclosed, it is important to come into our office as soon as possible because bankruptcy must be filed before the sale of the house. Don’t wait until the last minute if you are trying to save your house – when you call our office, be sure to let us know your house is being foreclosed so we can get you in as soon as possible.
The answer to this question is most often “yes.” Repossession can be stopped by filing bankruptcy.
If you want to keep the vehicle, you will most likely need to file a Chapter 13 bankruptcy in order to catch up on the missed payments.
Usually, when people come to Slayton Law their credit score has already taken a hit and is lower than they would like it to be. In the vast majority of my cases, my clients’ credit score actually goes UP within 12 months after filing bankruptcy. Should you hire Slayton Law, we will show you exactly what your credit score is now, and what it should look like in a year after filing with us.
Most people are pleasantly surprised.
That said, bankruptcy WILL make it more difficult to get good interest rates in the short run, for a few years after filing. Nonetheless, again, bankruptcy usually IMPROVES your credit score.
Most lenders look at the last 3-4 years credit history when making a loan. Consequently, most debtors who do a good job rebuilding their credit after filing bankruptcy are able to get a car or home loan within 2-3 years after their bankruptcy.
A Chapter 7 bankruptcy is what some people call “Straight Bankruptcy” or “Liquidation Bankruptcy.” It is an excellent way to get rid of unsecured debts such as credit cards, medical bills, and personal loans, and get a fresh start in life. Chapter 7 bankruptcies are also fast – the time from filing to discharge of debt is only 90 days.
Filing a Chapter 7 bankruptcy must be done strategically, however, because the court has the right to sell any property you own that you cannot protect using “exemptions” that are provided for in the Bankruptcy Code.
After the money from the sale of your things has paid off as much of your debt as possible, your remaining debts are wiped away and your personal obligation to pay them in the future is completely gone.
Again, the decision to file a Chapter 7 bankruptcy is a strategic one, so it’s important to have the advice of an experienced bankruptcy attorney to protect as many of your assets as possible under the law.
At Slayton Law, we guide you through the process of deciding whether to file for bankruptcy and if so, which type of bankruptcy will protect your assets the best. When you become a client, we will be there by your side, every step of the way.
Chapter 13 bankruptcy has also been called a “Payment Plan Bankruptcy” or a “Wage Earner Bankruptcy.” It is a reorganization of your debt, allowing you to pay some or all of it back over a period of time.
Filing a Chapter 13 bankruptcy is great because it allows a person to keep all of their property. The lawyers at Slayton Law work with clients to develop a “plan” to pay the Trustee a set amount of money each month for three to five years. Those monthly payments are used to pay back a portion of the debt. The rest of what you owe is usually wiped away.
If a person is behind on his or her mortgage or car payments, filing a Chapter 13 is a great way to help catch up. It allows the person to keep his or her house and/or car so long as payments according to the plan continue to be made.
Another benefit of filing Chapter 13 is that it requires very little money up front – if you file with Slayton Law, you can pay attorney fees as part of your plan payments, making it extremely affordable.
Chapter 11 is a reorganization bankruptcy for persons with more debt than is allowed in Chapter 13 cases, or for businesses that want to reorganize. It is typically more expensive, in terms of court fees and attorney fees, than a Chapter 13 bankruptcy and for that reason is generally used only by businesses
Chapter 12 is a reorganization bankruptcy for farmers. It gives the debtor more ways of saving a farm business than does a Chapter 13.
No. There is no minimum amount of debt a person must to have to file bankruptcy.
If the amount of the debt is small enough in relation to income, I may advise to try to pay it off outside of bankruptcy, with the help of one of the credit counseling agencies approved by the Bankruptcy Court for the Western District of Virginia.
If you would like advice about your particular situation, call our office to schedule a free 30-minute consultation with one of our lawyers.