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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The aim of bankruptcy is to provide a consumer with a fresh financial start. It should relieve them of overwhelming debt and let them start over. In principle, it is a good idea but between changing laws and social stigma, it is something almost all consumers would prefer to avoid.There are two types of bankruptcy that apply to consumers. Chapter 7 and Chapter 13. Both are designed to help eliminate debt, but they are quite different in how they work. Chapter 7 is also known as credit card bankruptcy, and it is largely a type of reorganization for finances. The consumer gets to keep all property but must make monthly payments over a three to five year period to repay all or at least part of the debts owed. There are many exceptions that vary from state to state, and in some cases property can be taken.Chapter 13 is more commonly known as a wage earner bankruptcy. In this case, the consumer must have steady income that can be used to repay a portion of debts. There are also restrictions on amounts of secured and unsecured loans. It is possible to avoid property foreclosures by making up missed payments as a part of the repayment plan.Due to laws that changed in 2005, not only is bankruptcy harder to file for, it no longer erases all debt either. There are many restrictions about what can and cannot be included in the proceedings. Alimony, back child support, student loans and certain tax debts are but a few that are not included. The standards are now very difficult to meet, and it is all a part of a lobbying effort made by credit card companies who felt that consumers were abusing the system. For the consumer in serious, unpayable debt, it is no longer the easy solution it once was.

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Filing for Chapter 13 bankruptcy means a long commitment to repaying all or part of your debts under a court-order Plan (I’m capitalizing here because the actual document is called a “Chapter 13 Plan”). This Plan usually lasts between 3-5 years, and in some parts of the country the failure rate can exceed 70% or more. So the deck is stacked against you, and a successful Chapter 13 bankruptcy case relies heavily on your good relationship with your lawyer. Whereas a Chapter 7 can be quick and painless, Chapter 13 is more of a long-term partnership. At the end of the case, there’s one thing that every Chapter 13 debtor must do in order to obtain a discharge. That’s the filing of Official Form 283, called, Chapter 13 Debtor’s Certifications Regarding Domestic Support Obligations. The U.S. Bankruptcy Code takes very seriously how the system impacts children and former spouses. In fact, many sections of the law were changed with the specific purpose of protecting children and former spouses from the possibility that a consumer might use some sort of loophole to minimize their responsibilities to take care of their families. One of the things the bankruptcy system recognizes is that domestic support obligations are handled by state law and local courts rather than by the federal judiciary. These two systems don’t often share information, so it’s difficult for the court to be sure that a bankruptcy debtor is doing all that is legally required under state laws.

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This is the scenario. You have ordered a copy of your credit report from one of the three major credit bureaus and as you open it, all you see are a bunch of outstanding balances that you need to pay off immediately. The problem is, it will be difficult for you to settle these debts since the interests alone have all ballooned out. Add to your woes, you have just been laid off from your company. So how will you handle all these debts and bills each month? Most of us encounter a similar problem. Recession has inflicted great damage to our financial stability. We found it difficult to retire all our debts. This problem may push us to finally decide on filing for bankruptcy. After all, bankruptcy can wipe off some and even all of our debts. And for sure having been discharged from bankruptcy, we can have a fresh start for us to slowly work on rebuilding our credit reports. Aside from being retrenched from work, what other reasons can push people to file for bankruptcy? We will give you the four main reasons why people choose to file for bankruptcy.
Reasons Why People File for Bankruptcy
-A recent, bad divorce. Divorce proceedings are not only time-consuming but also very expensive. People who underwent divorce settlements usually find themselves struggling to regain their financial stability. The reason is because a divorcee will need to pay a lot of charges. He or she must pay alimony charges, provide child support, and also settle the bills from his or her lawyers. And if a divorcee does not have a stable job, of course he or she will find it hard to keep up with his or her obligations. So, this is the main reason why divorcees commonly file for bankruptcy. They want to gain relief from all the worries and stress brought about by their financial difficulties.
-Stop the Foreclosure on your house. A Chapter 13 Bankruptcy filed before the sheriff’s sale can save your house from foreclosure. This is why most people would rather have bankruptcy in their credit reports rather than lose their homes to foreclosure. Still, this arrangement can only work if the person who filed for bankruptcy can keep up with the repayment plan. Such plan gives specific details on how the person can pay all his mortgage arrears over a period of five years.

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So you have finally made a decision regarding your financial affairs, and you believe that bankruptcy is a necessary step for your future. Do you really need a bankruptcy lawyer to help you figure things out?

Yes, now more than ever, a bankruptcy lawyer is a must if you plan on filing Chapter 7 or Chapter 13 in the near future. First of all, this professional assistance can help you decide whether bankruptcy is in your best interest to begin with. An honest and capable lawyer can examine your situation and answer specific questions that you may have regarding your own circumstances.

After all, every person is different, and you need to have a lawyer who cares specifically about your own set of circumstances. Once you have made a decision that bankruptcy is right for you, you still need a professional to help you along the way. You should not count on a paralegal or on a document preparation service at a time like this.

Why is a bankruptcy lawyer so crucial nowadays? Because Congress remade the bankruptcy code into something much more complex. Some bankruptcy attorneys refer to it as barf (the bankruptcy abuse reform fiasco). According to some experts, the law is such a mess that many lawyers and judges are still having trouble trying to figure out exactly what Congress meant when it passed a law. (This should come as no surprise, because Congress itself often doesn’t know what it’s doing. I imagine most of the members of Congress don’t even read the bills that they’re passing.)

You may have a buddy who tells you that declaring bankruptcy by yourself is a piece of cake. Chances are, however, that your friend declared bankruptcy before the recent changes in statutes. Take a prudent approach and get help from a professional who can help you navigate the maze known as the bankruptcy law. Meanwhile, continue to learn as much as possible through more articles like these.

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The past few years have included many economic upheavals in the United States. Not only have corporations that were once thought to be untouchable admitting to years of dishonest business practices, but many more were forced to lay off thousands of people or even shut their doors forever. These occurrences have had dire consequences for hardworking families all over the country, as regular people have seen their savings slip away, while credit card bills and mortgage payments continue to build up. If you’re at the end of your financial rope, you should know that declaring bankruptcy is your right. Many responsible people shudder at the mere mention of filing for bankruptcy, but it’s important to remember that it is your Constitutional right to choose this option to get out of debt and get your finances back under control. In this uncertain job and credit market, the last thing that you want to do it risk losing your home or your car because of your financial problems. It’s important that you realize there is nothing to be ashamed of and that filing Chapter 7 or 13 might be the best way for you to salvage what remains of your assets. In most cases, people are still eligible to file for Chapter 7 bankruptcy, which is the option that allows you to erase your debt and start fresh.
It’s important to remember that filing for Chapter 7 might put some of your more valuable possessions, like cars, houses, and boats at risk of being sold to pay off your creditors. Of course, you would want to talk to a bankruptcy attorney to understand what assets may be exempted, and thus, protected from being sold. Generally speaking, Chapter 7 is usually the fastest way to eliminate your creditors and start building a new financial life.

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The goal of Chapter 13 bankruptcy is to help you create a payment plan so that you can pay off part or all of your debt during the next three to five years. But how do you determine whether you have to pay a creditor in full instead of settling for pennies on the dollar during a Chapter 13 bankruptcy plan. Well, that largely depends on the kind of debt that we’re talking about.

There are some kinds of financial obligations labeled as priority claims. These kinds of debts must be paid off completely during the repayment plan. Some types of priority claims include child support obligation and back taxes. If you have these kinds of financial concerns, then you will need to create a payment plan in which you pay off these priority claims completely. If you are not able to do so, you may not qualify for Chapter 13.

What are some other eligibility requirements for Chapter 13? Well, for one thing, there is a maximum amount of debt. To qualify for Chapter 13, you should not owe more than $922,975 in secured debts. You should also not have more than $307,675 in unsecured debt. If you’re wondering about the difference between secured debts and unsecured debts, it’s actually pretty simple. A secured debt means that there is an asset that can be repossessed such as your car or your house. Unsecured debts, such as credit cards, are not backed up by any collateral.

Your eligibility for this kind of bankruptcy and the exact terms that you are given also depend on your recent filing history. If you have filed with a bankruptcy court for any kind of relief during the last few years, this may change your situation considerably. If you were given a discharge recently, you’ll be treated differently. How so? Well, assuming you qualify for another discharge to begin with, you’ll probably have to pay off all of your debt to the creditors during a repayment plan instead of simply settling for a fraction of the cost.

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Facing severe foreclosure consequences and unsure of what to do next? Have you tried the many options to stop foreclosure such as refinancing, the hardship letter method, getting help from the government as well as others, but still failed in your efforts? Then there is one last option available for you that would undoubtedly work, yet is something that is definitely drastic and would require plenty of courage from your side. I am talking about opting to file for Chapter 13 Bankruptcy, a definite way to stop home foreclosure without a shout of a doubt!

Bankruptcy is without a doubt a quick way to get rid of al your debts, not only your mortgage debts, and allows you to start off your financial life on a new page immediately. Once you file for Chapter 13 Bankruptcy, not only are all your mortgage debts taken away, your lenders would also not be able to come after you once your home is auctioned off although you still owe them a decent amount of money. Once you file for Chapter 13, your debts are ultimately written off, and you will have to start life afresh again! Nevertheless this option should only be considered once you have depleted all the other solutions to fight foreclosure that are available to you, and all forms of negotiations have failed.

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Whenever a bankruptcy case is filed in a court (it can be under any chapter of the Bankruptcy Code) the automatic stay starts.

The automatic stay helps the debtor to protect his money or property from the creditor. Ones the case goes to the bankruptcy court all the lawsuits need to stop. A creditor is then prohibited to claim any property or money from the debtor until and unless the decision is made by the court. According to the chapter 13 bankruptcy the creditor is not even allowed to even ask money from the co debtor. The creditor or any third party trying to recover debt from the debtor is not allowed to make phone calls regarding the payment or have letter law suits. In fact, if knowingly they do, it is called contempt of court and they can be punished or fined for that.

The most important benefit that a debtor has is that if any property (like repossessed machinery, autos, money, tools, bank accounts or anything else) is ceased by the creditor then it has to be returned to the debtor.

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Bankruptcy is a toughest decision to make. But sometimes people go with this option due to unexpected expenses. Usually, people adopt this option when they are not able to pay back the money to creditors. Good bankruptcy information is difficult to find. Anyone can file for it such as individual, company, and organization. As per experts, it is a fruit which should be eaten properly and carefully. It could be a most important decision of your life, so do consult properly before filing it. If individual fails to pay the debts through debt consolidation, then he/she can file for it.

Bankruptcy can be divided into three parts or chapters, Chapter 7, chapter 13 and chapter 11.

Chapter 7 is the best option for those debtors whose income is below the median of debts and got unsecured debts. All unsecured debts like credit cards, unsecured loans, medical bills, education fees etc.

Chapter 13, this bankruptcy plan is applicable only those debtors who are earning sufficient funds from job. Courts create a payment plan for debtor where he/she has to pay a particular amount to court every month for terms of 3-5 years.

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