Bankruptcy is a federal law designed to protect individuals who have encountered financial difficulty. The filing of a bankruptcy offers immediate relief to a debtor, by prohibiting all collection attempts. Activities prohibited by the Bankruptcy Code include phone calls and letters designed to collect a debt, as well as lawsuits, garnishments, repossessions and foreclosures. All creditor contact must cease immediately upon the filing of a petition for bankruptcy, subject to certain exceptions in a small number of cases.
Depending upon the type of bankruptcy which is filed, debts may be eliminated entirely, or reorganized and repaid over time through a court supervised repayment plan. The type of bankruptcy which is best for a particular client will depend upon their particular circumstances, and the goals which they seek to achieve. Leiden and Leiden offers a free bankruptcy consultation to review the client’s financial situation and propose a debt relief solution.