Twin Towers of Bankruptcy
If I were asked to explain bankruptcy in two words, my answer would be, “I need three words.” What three words? “Automatic Stay” and “Discharge”. I like to think of them together as the Twin Towers of Bankruptcy. These three words make up the two chief tools in Bankruptcy that can make it so life altering for you. These two tools can work alone, but they work best together. In fact, when they are combined together, magic happens.
The First Tower – The Automatic Stay
The Automatic Stay is what makes it possible to save a home from foreclosure. There’s nothing else in our country like the power of the Automatic Stay. It can stop a foreclosure at the last minute. It can prevent your car from being repossessed. It can force the constable who is at your door step to go home and find something else to do. It can give a middle finger to the title loan companies. It makes bill collectors stop calling. It puts power back in your hands and out of the hands of the creditors. Tired of feeling helpless? The automatic stay turns the tables and makes the creditors feel helpless. It does all of this and a whole lot more that I haven’t mentioned because the list is too long.
The Second Tower – The Discharge
Once the Order of Discharge is signed by the Judge, all of your dischargable debt is gone. The discharge is when the court wipes away the debt with the stroke of a pen. The discharge wraps it all up. Does it get rid of everything? It won’t get rid of a child support arrears or a criminal fine. Nor does it get rid of student loans, but we have tools for our clients that we use to help solve student loan issues both inside and outside of bankruptcy.
One of the hidden secrets about the discharge is what it really does to most people’s credit rating. Conventional wisdom says that when you file for bankruptcy your credit score goes down. If you have a 720 credit score or higher, this is true. It will go down. However for the vast majority of our clients, the discharge in bankruptcy causes their credit score to go up. And, when our clients enroll in our credit rebuilding program, they have the guidance of our firm to help them rebuild their credit score in two years to 720.
The Twin Towers of Bankruptcy Together
It’s when you combine these two legal tools together that the magic happens. Bankruptcy doesn’t just stop your home from foreclosure, but it also empowers you to be able to save your home by helping you get caught up on your mortgage payments. It not only stops your car from getting repossessed, it also empowers you to keep your car even when you are a couple of months behind on your car payments and the repo man from Santander is driving around looking for your car. Together, they give you peace of mind and a chance to start over.
If you are wondering how bankruptcy’s twin towers of the automatic stay and the discharge can help you, give our firm a call at 214-377-0166 to see if meeting a bankruptcy attorney and getting a fresh start in life makes sense for you.