The debtor is allowed to exempt certain property from liquidation by the trustee. Exemptions can thus vary widely from state to state. This stay prohibits any act to collect money or take property from the debtor. It stops wage garnishments, foreclosures, repossessions, and the like. The stay usually remains in effect throughout the case.
Bankruptcy is often a very effective tool for obtaining relief from oppressive debt.
Special attention should be given to whether the debtor will receive a discharge, and the effects of the discharge. Spouses of debtors often receive indirect relief from a bankruptcy discharge, without having to file a petition. Bankrupcy can be helpful in dealing with secured creditors, and often allows a debtor to retain property and reduce his payments. If you would like more information concerning personal bankruptcy or other related legal matters in the State of California, Attorney Henry Rendler is available for consultation. Please feel free to call 408.293.5112 to set up an appointment.