Have you noticed that debt collectors are now more aggressive than ever? Until recently, the Fair Debt Collection Practices Act reigned in these debt buyers and set strict limits on what they could and could not do. In a pair of 2016 decisions, the Supreme Court significantly diluted the FDCPA. Now, many Greenfield families must face debt collectors alone, and that is a scary position.
The experienced attorneys at Miranda, Magden & Miranda, LLP, believe that no one should face things like creditor lawsuits or wage garnishment actions alone. So, we offer a number of solutions that halt these activities and also permanently discharge the debt. After just a few months or years, you and your family will have a fresh financial start. That is what it is all about.
Bankruptcy’s Automatic Stay
California is a nonjudicial foreclosure state. So, mortgage lenders need not get a court order to foreclose on your home. As such, there is little judicial scrutiny. The same thing applies to things like creditor lawsuits. Anyone may file a civil suit against anyone else for any reason. That lawsuit could lead to something like wage garnishment.
Section 362 of the Bankruptcy Code prevents all these kinds of creditor adverse action. In most cases, Section 362 of the Bankruptcy Code takes effect when debtors file their voluntary petitions and remain in effect until the judge closes the case. The Automatic Stay is just that. Debtors need not establish fraud, undue hardship, or any other kind of cause. Creditor action just stops, and moneylenders face stiff penalties if they violate the Automatic Stay.
Note that Section 362 prohibits all communication between creditors and debtors. So, many creditors do things like unilaterally suspend ACH payment arrangements and stop sending monthly statements. If you have questions, our lawyers can talk to your creditors. Section 362 prohibits creditors from contacting debtors. It does not prevent debtors from contacting creditors, especially if the debtor has an attorney.
Debt Discharge in Greenfield
The Automatic Stay gives debtors the breathing room they need to get on with their lives. If the debtor is behind on secured debt payments, such as a mortgage note, the Automatic Stay lasts up to five years. This protected repayment period gives debtors plenty of time to make catch-up payments at their own pace.
There is more good news. Bankruptcy also discharges debts. Once that happens, the debtor’s legal obligation to repay the debt is gone. Some dischargeable debts include:
- Credit cards,
- Payday loans,
- Medical bills, and
- Some older taxes.
Team Up with Savvy Attorneys
Bankruptcy offers both short and long-term solutions for families under crushing debt loads. For a confidential consultation with an experienced bankruptcy lawyer near Greenfield, CA, contact Miranda, Magden & Miranda, LLP. Initial consultations in Bankruptcy are provided free of charge.