Last-minute Decision To Hire A Bankruptcy Attorney

In most cases, filing bankruptcy is the last option for many individuals

. Although, many times the writing is on the walls that bankruptcy is going to be inevitable, most people try to avoid it at all costs. Many times people could avoid a lot of pain by just going in and consulting a bankruptcy attorney when things start getting tough. It doesn't mean that the bankruptcy attorney will think that you need to file bankruptcy immediately, but it might be time to start planning. To have a successful filing, planning is essential.

The average American usually waits until they're being sued before calling a bankruptcy attorney to find out if filing bankruptcy can stop the creditors. Many attorneys get calls the morning of the foreclosure sale asking for the attorney to file an emergency bankruptcy to stop the foreclosure sale. Most of the time, it's just too late to do anything. Most Americans don't understand how much is involved in completing a bankruptcy petition especially after the changes to the bankruptcy code in 2005. If all the information was available, it would take close to a day for a paralegal to complete the bankruptcy petition and have their attorneys submitted it electronically. So calling the morning of the foreclosure sale is usually too late. It's interesting to wonder what people are thinking coming up to the sale of their family home. I don't know if they are burying their heads in the sand and not facing reality or are they thinking that they might just pull a rabbit out of a hat and come up with the money to stop it.

Many people rely on loan modifications to get themselves out of trouble. What the media is not telling people is that only 5% of all loan modifications applied for actually get approved. Many Americans are playing the loan modification game and will soon find out that it's not available to them. At that time, this group will be racing to see a bankruptcy attorney because usually once the modification is denied, the creditor typically will start the foreclosure proceedings. Now, after spending a year of making the new smaller payment, the individual will have a large amount in arrears. The only thing that will give this person a chance is filing Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy will stop foreclosure but usually only temporarily. The automatic stay is put in place upon filing Chapter 7 bankruptcy. The automatic stay will stop foreclosure, lawsuits, judgments, wage garnishments and all collection activity. With Chapter 7, the lender will usually file a motion for relief of stay with the bankruptcy court. This will lift the stay and allow the lender to proceed with foreclosure on the property. To get the best results always consult an experienced bankruptcy attorney who will have their clients best interests in mind.

by: Lara Carter

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