The Unites States Constitution provides a way for people burdened by excessive debt to get a “fresh start” by filing for bankruptcy allowing them to pursue productive lives unimpaired by past financial problems. It is an important alternative if you are strapped with more debt and economic stress than you can handle.

The Federal Bankruptcy Laws were enacted to provide good, honest, hard working debtors with a fresh start.  Bankruptcy helps people avoid the kind of permanent discouragement that can prevent them from ever reestablishing themselves as hard working members of society.

The Bankruptcy Code is divided into chapters.  The chapters which almost always apply to consumer debtors are Chapter 7, known as “straight bankruptcy,” and Chapter 13, which involves an affordable plan of repayment.

An important feature applicable to all types of bankruptcy filings is the automatic stay.  The automatic stay means that the mere request for bankruptcy protection automatically stops and brings to a grinding halt most lawsuits, repossessions, foreclosures, evictions, garnishments, utility shutoffs and debt collection harassment.  It offers debtors a breathing spell by giving the debtor and trustee assigned to the case time to review the situation and develop an appropriate plan.  In most circumstances, creditors cannot take any further action against the debtor or their property without permission from the Bankruptcy Court.

If you are considering bankruptcy, we encourage you to seek the advice and assistance of an experienced San Francisco Bay Area bankruptcy attorney who practices California bankruptcy law before you decide to file.  At The Chernev Firm, we will provide you with a free bankruptcy consultation where you can talk to a bankruptcy lawyer about your options.