Following the financial crisis of 2007/2008, Stockton was particularly hard hit by the sub-prime mortgage scandal and the consequent loss of employment and shrinking consumer base. There is no single reason why hardworking individuals and families have found themselves in difficult financial situations. Similarly, there is not single reason why Stocktonians have chosen to file for the benefits and protections afforded under bankruptcy. What has made bankruptcy in Stockton so appealing to the community and indeed to the city itself?
The most powerful legal protection afforded people filing for bankruptcy in Stockton is the automatic stay. This is a legal directive that requires your creditors, lenders, collectors, and anyone else pursuing legal action due to unsecured debt to stop their attempts at collection immediately. These can include one or more of the following:
-Wage garnishment
-Foreclosure
-Repossession of a vehicle
-Lawsuits
-Seizure of property
-Harassment from collectors and lenders
As long as you are under the protection of bankruptcy, none of these can legally take place. If a creditor does try to pursue collections during this period, alert your attorney immediately.
Many individuals, families, and businesses are stuck in a bill-to-bill cycle wherein a single unforeseen expense could put them in ruin. Under these circumstances there is no way to build savings. During the course of your petition for bankruptcy in Stockton, many of your debts will be discharged altogether (in the case of chapter 7) or reorganized into a smaller, more manageable monthly payment (chapters 11 & 13). What this means is that for the first time since your financial troubles began, you can begin to build your savings back up, putting you in black and helping ensure you stay out of debt into the future.
Before you begin to believe that bankruptcy […]
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