Filing for bankruptcy is perhaps one of the most difficult points in anyone’s life. The most important part of this process is ensuring you have excellent representation so you are protected as much as legally permissible.
A frequently asked question I get from clients is: “How can filing bankruptcy protect my assets?”
Upon the filing of a bankruptcy petition all actions against the debtor must cease/stop immediately. When I use the term immediately, I don’t mean within the next week or month. I mean the exact moment that the debtor files for bankruptcy, the exact date – hour – minute.
Bankruptcy is extremely time sensitive and clients should alert their attorneys of any pending law suits, wage garnishments, foreclosures, vehicle repossession, etc. If you file a bankruptcy petition, one minute before a Sherriff’s sale, wage garnishment, foreclosure, vehicle repossession, you will stop the action. You will receive bankruptcy protection immediately. Bankruptcy protection will stop your assets from being seized.
Examples of Bankruptcy Protection
You receive a notice that your vehicle will be repossessed. The filing of an immediate bankruptcy petition will legally prohibit that creditor from picking up your car at that time.
What if my car is picked up right after I file for bankruptcy?
You have bankruptcy protection so your car must be returned to you.
How can I remove the levy which has my funds frozen?
The filling of an immediate bankruptcy petition will place you into bankruptcy protection, unfreezing your funds and allowing you to withdraw the money.
You just received a notice that you are being sued by a credit card company or another creditor and the trial date is the next day. How can bankruptcy protection help?
The filing of an immediate bankruptcy petition will stop that action and you will not have to appear in court. You just found out that a creditor seized funds from your bank account.
How can bankruptcy protection help?
The filing of an emergency bankruptcy petition will allow you to retrieve this money involuntarily taken by a creditor shortly before bankruptcy.