Declaring bankruptcy is, in effect, starting anew. So with your new life should come new rights and privileges. Bankruptcy lawyer Patrick Kavanagh runs the Law Offices of Patrick Kavanagh, P.C. in Bakersfield, California, and talks here about what you can legally expect to happen after you file.
Once you file for bankruptcy, you have a right to stop all creditor harassments and communications. In essence, you have the right to be left alone.
You also have the right to pick which secured debt you want to bring forward into the future. That means, in other words, that if you have two cars or three cars, you can keep one or two of them but not all of them, and you decide which ones you want to keep.
Lawsuits and Foreclosures Stopped
All lawsuits and foreclosures are also stopped. Foreclosures, for the most part, will begin anew once the bankruptcy is over with, or once they get relief from the automatic stay. So that just gives people breathing space.
You have a right to purchase a car for what in fact is owed on it. Which means if you owe $25,000 on a $7,000 car, you can get the $7,000 car for $7,000. What you have to do is pay cash, or find somebody to finance it.
That means someone has gone to a finance company that makes them a loan, or they have a horrible interest rate and are a couple of payments behind, or have gone to an auto pawn place, any number of things. It’s a lot more common than people think.
Right to be Left in Peace
I really think that the right to make the phone stop ringing is the most important thing, I have had people in my office whose cell phones went off five times during an interview in my office.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
