The automatic stay provisions of the U.S. Bankruptcy Code are some of the most powerful and immediate protections for people who need to be shielded from their creditors. The stay, however, is not perfect nor permanent. In fact, there are limitations built into the automatic stay provisions that limit the effectiveness for people who have filed prior bankruptcy cases. In the old days (before the current law came into effect in 2005) people could file case after case in rapid succession, dismissing the ones that didn’t work out and filing new ones to stop their creditors. For most people, these “serial filings” (as they came to be known) were made in good faith and with the best of intentions; someone would file a Chapter 13 bankruptcy to stop a foreclosure, they’d miss a few post-petition payments and the mortgage lender to obtain relief from the automatic stay. Then the homeowner would get a better job and be able to make the payments. So rather than stay in a Chapter 13 without the benefit of the stay, they’d dismiss their case voluntarily and file a new one – and get a new automatic stay in place to protect them. Not so anymore. Under the 2005 amendments to the U.S. Bankruptcy Code, a case is presumptively filed in bad faith and subject to a limitation of the automatic stay if a prior case was filed and dismissed within the past year. If 1 previous case under any of chapters 7, 11, and 13 in which the individual was a debtor was pending within the preceding 1-year period, then the automatic stay is in effect for only thirty days.

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It seems as though you can’t turn on the news these days and not hear about the amount of foreclosures going on in every state. Millions of homeowners struggling and wondering how are they going to keep their home and if anybody is willing to help with stopping foreclosures, especially theirs. It is amazing how many people are selling books, CD’s and DVD’s, all in an effort to help those who purchase these items a ray of hope that they can actually buy a house for pennies on the dollar. They then contact the person who is having a hardship and wants to keep their home; in an effort to buy their home for far less it is worth. I heard of some homeowners who have received as many 70 letters from these so called investors. After making contact they can’t understand why the homeowner ignores them or is just plain rude. Wouldn’t you be if you were loosing your home? With so many houses being in some stage of foreclosure you would wonder why more professionals wouldn’t concentrate on stopping foreclosures, helping those in need keep their house, especially since values have fallen and most have no equity left in them.

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What can you do about your rights in foreclosure? Can you use any of them to your advantage? How do you even know what your rights are? The best place to begin to understand your rights in foreclosure is by understanding the laws governing foreclosure in your state. In foreclosure, it is your state laws that are the most important. They determine how long the foreclosure process takes and what you can do at various points in the foreclosure process. There are state and local resources where you can find out what the laws are for your state. As far as using your rights to your advantage, it really depends on your situation. If your lender has done something illegal, has not followed proper procedures, or if there is a question about the validity of your loan at all, you can certainly legally use any of those things to your advantage. But to effectively pursue your mortgage company on any of these grounds, you will likely need a lawyer. You can bet that your mortgage company has one.

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A current of foreclosed homes has been sweeping the harassed housing market, bringing down values of homes, dislocating households, sending the government scrambling to manage this crisis. However, some homebuyers are seeing a once-in-a-lifetime chance in the murky headlines and a great opportunity to find a bargain in buying a foreclosed property.

As of this moment, it is anybody’s guess when the housing downturn will hit bottom. If you are looking for a home to buy and you plan to stay on it for quite some time, there are indeed plenty of bargains you can find in foreclosed homes.

Before you buy a foreclosed home, here is what you should know.

1. Find out how long the home has been left empty. The longer vacancy means more damage in several instances. If the home has not been occupied for months, you could find the following: dried out plumbing seals, sewer gases back up and bugs in the sewer that could get in the house.

2. Check out the house yourself. It is important to actually see for yourself the situation of the foreclosed home that you are planning to buy.

3. Consider the neighborhood where the foreclosed home is. Your research should include a whole evaluation of the neighborhood. You will not be able to get back repair costs if the home value is brought down by high crime and widespread foreclosures in the area. Try to check out the appeal of the neighborhood at different hours in the day and night.

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The sad fact is that today there are more homeowners who are unable to pay their mortgage each month. Many got into financial difficulty for any number of reasons beyond their control. This could be because of sudden unemployment, overwhelming credit card debt, a prolonged illness or death in the family, or even unforeseen, but essential and costly repairs to the house or car. If you’ve already received a “Notice of Default” from your mortgage lender, you should know that this is how the lender is trying to protect its assets, namely, its security interest in your home which you gave them when you obtained the mortgage. Even so, it might not be too late if you take immediate steps to contact your lender. If you’re trying to do your best but can’t make the payments, you are better off making your lender aware of the situation as soon as possible and seeing if they might be willing to work with you rather than foreclosing, which neither side wants.

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Bankruptcy in the United States come under the Chapter 11 and Chapter 7 with the United States Bankruptcy Court presented with the authority to declare an entity as bankrupt. It emerges when a business entity is unable to meet the amount due from them to the creditors or where the net assets are negative. Neither the amount of cash reserves with the company nor the sale of a few assets can offer respite from the burden of debt. Typically, the creditors themselves or the management of the company invoke the proceedings for bankruptcy. The Court conduct a legal and economic feasibility on the company in question and depending on its impact on the society may make the decision to restructure or liquidate the entity. Liquidation is dealt according to the Chapter 7, whereas it is the Chapter 11 that deals with the restructuring. The debt problem faced by the bankrupt firm may be solved through the formal restructuring or informal restructuring. Informal restructuring is less expensive and may result in an informal compromise on the amount outstanding. The creditors may agree for an ‘extension’ of the loan duration giving the opportunity for the company to make a comeback. These creditors may also provide consent for a ‘composition’, which is a part settlement of the amount outstanding to the creditors. The bankrupt company may sometimes remain on the look out for a merger to create a favorable environment.

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Typically, when families face foreclosure on their homes, they believe that they have no other choice and that they will have to give up their homes. This can most definitely be the case, but not for every homeowner. The foreclosure process can be delayed if a homeowner knows exactly what to do and how to move forward. There are many ways to delay or even stop foreclosure. Many Americans today are doing whatever is needed to save their homes; from using credit cards to taking on second jobs. There are times when these are just not enough and repossession of the home begins approaches closer and closer. Homeowners are looking for ways to prolong the foreclosure process and get through their financial crisis. The following are some tips to help delay that process.

1. Do not leave the home. This is most important. If you leave the property, you give up the rights that you may have protecting you under the Foreclosure Housing Act.
2. Communicate with the bank. Lenders do not want to reclaim homes and like to know what is going on with their property. Foreclosing on a home means a large loss for a lender, including monthly payments or revenue. As long as communication and effort is made from a borrower, lenders typically allow time for finances to get back in order.

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Homeowners who are struggling to pay their mortgage and are considering applying for a loan modification to save their home from foreclosure should be aware that how you talk to your bank will make a huge difference in the final outcome of your application. Mortgage lenders do put a lot of emphasis on the interaction they have with their borrowers. Homeowners often end up thinking that simply sending all the required documents and submitting the application is all they can do. The fact is you need to do much more if you are serious about saving your home. You need to engage your mortgage lender in a way where they will not only know about your situation but also try to expedite your application approval sooner than the timeframe they give you.

The first aspect of engaging your mortgage lender is writing a good hardship letter. You need to put in a fair amount of thought in writing this as it is the hardship letter which will inform your bank why they must consider you for a loan modification. It tells your bank about your financial situation and why it is getting tougher for you to meet your mortgage requirements. A good hardship letter can capture your bank’s attention and allow your application to progress further.

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The policy of the US government is so tailored that student loans for education are easily available. The result is that liberal loan schemes are on the anvil and loans for higher studies are open for all. However during the seventies a different phenomenon had taken place. Students then in large numbers took education loans and accordingly obtained their degrees. But on completion of their courses, before they had got a job the students would file for bankruptcy. The purpose was to get out of the liability to pay back the loan. They could thus represent to the courts that they had no income in their plea of bankruptcy as they were unemployed. However to obviate this lacuna and also due to intense pressure the government changed the law and the requirements in 1998. There were further changes in 2005 and private loans were also brought within the legal net. The changes have effectively made it difficult to discharge student loans with a simple plea of bankruptcy. The only condition that can lead to a discharge of a student loan now is,if the student can prove that repaying the loan would create an undue hardship on him and his family. Proving this is the responsibility of the student himself. Prior to this student loans could be discharged in case they were paid for 7 years but this has also changed since 1998. Student loans are contracts like any other loan and are subject to laws governing contracts.Thus fraud, misrepresentation etc are open to challenge in a court of law. Another point in students favor is that the students’ loans are not enforceable when the school has closed prior to the student completing his education. These challenges could be raised in a Chapter 13 proceeding and decided by a bankruptcy judge.

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Filing for bankruptcy to get rid of debts is no more a common practice today. This year 2010 has also not escaped from the consequences of the recession that hit United States back in 2008. But till now people have nearly stopping going for bankruptcy instead they are attempting the other debt relief options available today to get relief from personal debts mainly credit card debts. Bankruptcy just led to too many disastrous effects not only on the individual’s life who files for it but also on the whole country’s economy. So the government had to come up with plans in order to save the economy from drowning. The American government has come up with vital plans in order to help out the debtors get rid of credit and avoid bankruptcy. There are certain methods through which you can settle a deal with the creditors and it is purely legal. On the other hand, they provided the financial institutions with billions of stimulus money so that they can offset loses, generate more revenue and grant their troubled clients with waivers. The current Obama’s government has come up with debt settlement program in which a debtor can succeed in reducing his debts to up to 60% which means that he would only have to pay 40% of the entire amount as full. This can be done when the consumer can join hands with a debt settlement agency. A legitimate debt settlement agency knows very well how to negotiate with the creditors. With their skills and knowledge they can grant the consumer with the most favorable deal.

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