Consumer Bankruptcy

In a Chapter 7 bankruptcy, most debts are completely wiped out in 4-6 months. The trustee “liquidates” your property to pay as much debt as possible. A Chapter 13 bankruptcy is a payment plan where unpaid debts are wiped out at the end of 3 or 5 years.  In most cases, debtors are able to keep most or all of their property through bankruptcy “exemptions.”

Creditor Harassment

Creditor activity is strictly limited in the bankruptcy process.  When creditors do not follow the bankruptcy rules, debtors have the right to sue for this harassment trhough the FDCPA, California Rosenthal Act, the Bankruptcy Automatic Stay, and the Bankruptcy Discharge Injunction.

Business Insolvency

When businesses fail, there are a number of options to shut the business down. This includes Chapter 7 and Chapter 11 bankruptcies, assignment for the benefit of creditors, or strategic negotiations with major creditors. At Avatar Legal, PC you receive representation from both a bankruptcy attorney and a business attorney to implement the right option for your business.

Stopping Creditor Harassment

Before Filing

After you have retained Avatar Legal, PC, you can inform creditors that you are represented by an attorney and that all further communication should be directed to us.  Any creditors of consumer debts (debts primarily for personal, family or household purposes) are then prohibited from calling you directly.  This will reduce the number of harassing communications you receive.

Unfortunately, some creditors refuse to follow the law and may continue to contact you.  When this happens, we can file suit under the Federal Fair Debt Collection Practices Act and the California Rosenthal Act.  We often handle these matters on a contingency basis- which means you will not have to pay unless we win the suit or settle, and the payment will come out of the judgment or settlement.

During the Bankruptcy (Automatic Stay)

Once you file for bankruptcy, an “Automatic Stay” is imposed by the court that remains in effect while your petition is pending.  This means that creditors are not permitted to attempt to collect a debt from you or to take any property securing a debt.  Click to learn more about the Automatic Stay.

If a creditor violates the automatic stay, we can file an action in bankruptcy court to stop the behavior and to seek damages.  We often handle these matters on a contingency basis and are paid our attorneys fees out of the judgment or settlement.

After the Bankruptcy Discharge

After your debts have been legally discharged pursuant to a bankruptcy, no one is allowed to attempt to collect these debts from you.  (Note- creditors are still allowed to enforce liens on secured collateral- such as repossessing a car or foreclosing on a home if payments are missed.)

When creditors attempt to collect the discharged debt, it is a violation of the discharge injunction, and we can reopen your bankruptcy case to file an adversary proceeding (similar to a lawsuit) against the creditor.  In some situations, we may be able to file an FDCPA or Rosenthal action in federal or state court.  We often handle these matters on a contingency basis and are paid our attorneys fees out of the judgment or settlement.

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Avatar Legal, PC is a debt relief agency as defined by 11 U.S.C. § 101. We help people file for bankruptcy relief under the Bankruptcy Code.
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This website is for informational purposes only. No attorney-client relationship is formed by viewing this website. If you are interested in establishing an attorney-client relationship, please contact Avatar Legal by telephone to request an initial consultation.