The Holy Grail of bankruptcy is what is called the automatic stay. Anyone who has fallen behind on payments knows the wrath of unrelenting debt collectors. Much like King Arthurs seemingly impossible journey to find the Holy Grail, all our clients seek relief from all the harassing calls and letters. Debt collectors will try to bargain with you, threaten you, and try anything to get you to comply with their demands even if you simply can't do it.

One of the most exciting areas of bankruptcy law is the ability to discharge or remove a second mortgage.  For years the ability to remove a second mortgage was largely irrelevant as property values rose year after year.  Now the power of the bankruptcy court has become one of the most powerful consumer protection laws on the books.  It is important for every home-owner to know his right to adjust his home mortgage through the bankruptcy law.

How can bankruptcy help discharge my debts?

For many borrowers, the choice of whether to file bankruptcy depends on a determination of whether a home-owner will be liable for debt on his home following foreclosure.

California has enacted a very strong law protecting home-owners from deficiency judgments following a foreclosure.  This is called the anti-deficiency statute or non-recourse statute.  It says, in sum, that borrowers who take:

   1. purchase money loans
   2. on an owner-occupied residence

One of the most unnecessary stressors for a bankruptcy client is anxiety about the 341 meeting.  So here are five reasons to be excited rather than nervous about the 341 meeting.

1. It won't take long.

2. There's only one of them.

3. Odds are, your creditors won't show up, and will miss their last chance to ever talk to you about your debts.

4.  Your attorney will be there with you.

5. It's usually the last appointment in your case!