Sacramento Bankruptcy Attorney serving Antelope discusses the main reason people file for either Chapter 7 or Chapter 13 bankruptcy relief

You don’t need to be clueless why people file bankruptcy .  The answer is simply that sometimes someone needs a powerful weapon to fight a financial battle – it’s called The Automatic Stay – Main Tool of Bankruptcy

Ever wonder what is the main reason people file for bankruptcy?  Let me give you a few clues:

First clue:  bankruptcy is not the first course of action people choose when they have trouble paying their creditors.  The vast majority of people try desperate measures to keep their head about the financial water line and only succumb to the bankruptcy choice because they are drowning in debt.

Second clue:  many people choose a Chapter 13 repayment plan if (and only if) they have an income that would enable them to pay their creditors at least some of what’s owed on the debt.  Most people, wage earners, consumers with plans to better their lifestyle or provide a better education for their children, don’t want to skip out on their debt – most people would pay if they had the means to do so.

Third clue:  most people don’t know enough about the basics of bankruptcy to make an educated decision about whether bankruptcy is right choice or what their other options are.  Most people will not find out until they must find out – because they are being harassed by creditors, or sued, or face wages being garnished, or car repossessed, evicted, or . . . until they have to . . .

Whether it’s a Chapter 7 or Chapter 13 bankruptcy, the main reason people resort to bankruptcy is as a defense to stop their creditors taking aggressive, harmful action against them.  Bankruptcy is a defensive tool because of its “automatic stay” provision which stops most actions against income or property.

Here’s some further details: Automatic stay stops actions against your property by a creditor, collection agency, or government entity. Especially if you are at risk of being evicted, being foreclosed on, being found in contempt for failure to pay child support, or losing such basic resources as utility services, welfare, unemployment benefits, or your job (because of a raft of wage garnishments), the automatic stay may provide a powerful reason to file for bankruptcy

And although bankruptcy may be the last resort, it doesn’t hurt to find out about it right away, as soon as possible, before you really must choose it.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com