The Automatic Bankruptcy Stay Explained

Author: Dave D. Clark

When falling behind on mortgage payments, foreclosure is not inevitable. Since the real estate market collapsed, more than 5% of all homes loans are in default. Today, workout situations are common. Lenders try to avoid repossessing homes, which in turn, bloats their balance sheet with non-performing assets. You may have time to workout an arrangement with your lender. Perhaps a loan extension is available. You may consider a different lender to refinance, focusing on high risk specialists. You may consider a deed in lieu of foreclosure if you cannot make mortgage payments.

In every situation, borrowers have unlimited options that include working cooperatively with creditors, settling debts, litigating disputes, and confronting creditors in the U.S. Bankruptcy Court system.

Bankruptcy automatically stops all foreclosure proceedings. The mechanism is known as the automatic stay. Each time a case is filed, under any chapter, the automatic stay prevents creditors from collecting debts. The stay provides broader protection by prohibiting repossession of assets, home foreclosure, and the continuation of lawsuits seeking judgments on debts.

The stay is not permanent. Borrowers who file bankruptcy have two options to bring payments current. In Chapter 7, actual payment is required to prevent the court from lifting the automatic stay. In Chapter 13, the court indulges legal fiction. The inclusion of payments in the plan creates an assumption that payments are current. To maintain a Chapter 13 case in good standing, monthly payments to a trustee are required.

Future mortgage payments must be made to avoid foreclosure in all bankruptcy cases. If you home has negative equity, homeowners in bankruptcy should carefully consider the long-term impact of keeping their home. You may surrender your home and treat the deficiency balance as an unsecured debt. All remaining unsecured debts are discharged when a case is closed. Chapter 7 typically lasts about four months unless creditors file objections. Chapter 13 cases last from three to five years before receiving a discharge.

Timing a bankruptcy case properly is critical for your success. You may file too quickly or too late to receive the maximum benefit available. If you file too early, you may not qualify for Chapter 7 because of the means test. If you file too late, you may unnecessarily waste exempt assets and potentially incur imputed income. Imputed income creates tax liability when lenders charge off debts. The best bankruptcy strategies begin well in advance of the filing date. In this way, you will gain the maximum allowed benefit and prevent the accrual of non-dischargeable tax liability. If you consider a few advanced strategies, you may adjust debts in a plan and receive a quick discharge by using your options at the proper time and in the proper sequence.

Article Source: http://www.articlesbase.com/bankruptcy-articles/the-automatic-bankruptcy-stay-explained-1514831.html

About the Author

Dave Clark enjoys bankruptcy strategy questions. Can bankruptcy stop foreclosure? Find out more why Chapter 7 bankruptcy stops foreclosure temporarily through his website.

Why Do You Need Bankruptcy Attorneys?

Author: Judy Dixon

It is abysmal and often very difficult to take see yourselfbeing insulted for debt, to see your property repossession and face foreclosure or simply not being able to see yourself on the other side of all your debts. If you also find yourself in such a case of mounting debts and torturing creditors then perhaps you should take the first appointment you get with a bankruptcy attorney. For bankruptcy lawyers it is their business and they know about everything that goes around in it so they will be able to sketch out a viable alternative for you which you might not even think can be worked out. So give in an expert and let them help you.

Along with repaying your debts and the bankruptcy attorney can also guide you to sell off your property in order to repay the creditors. And if selling off your property is not exactly your idea of getting rid of all your debts the bankruptcy lawyers can also assist you in making an arrangement with your creditors approved by the court to repay them in a pre-determined frame of time. Again, if you hire a bankruptcy attorney they are updated with every last bit of information regarding the United States Bankruptcy code. Bankruptcy is not an easily gliding procedure it can really confuse nonprofessional so a bankruptcy lawyer really can make things easy and facilitate them for you. The most common procedures in bankruptcy proceedings are Chapter 7 wherein you follow the debt liquidation or reorganization. The other one is arranging for repaying the indebted money under the Chapter 9, 11, 12, or 13 bankruptcies.

If you are thinking of filing for bankruptcy, a bankruptcy attorney is recommended. The rules of bankruptcy have changed and new norms have been introduced which a nonprofessional cannot be expected to know about. Again, the new rules have made it only difficult to file for bankruptcies all the more reason you will need bankruptcy lawyers to make your experience more pleasant after everything that you are already going through. They will be able to suggest you ways to get rid of your debt mountains, deal with your property and assets in a way that will benefit you and give you more time at hand.

Article Source: http://www.articlesbase.com/banking-articles/why-do-you-need-bankruptcy-attorneys-1634939.html

About the Author

Bankruptcy Attorneys also work with the creditors and give them the assurance that their funds will also get recovered back. So a bankruptcy attorney is obviously a person you are going to thank once you see the benefits of hiring them.

How Does Chapter 7 Bankruptcy Deal With Small Business Debt In Missouri And Illinois?

Author: Jim Brown

Starting and operating a small business in Missouri and Illinois is not an easy task, especially in this economy. Fortunately, bankruptcy may be an option for some business owners. The debt involved in a Chapter 7 bankruptcy is divided into two categories: dischargeable and non-dischargeable. Dischargeable debts, which include credit card debt, personal loans, medical bills, and most income tax debts more than three years old, can be eliminated through bankruptcy. Non-dischargeable debts, however, cannot. Those debts include student loans, alimony, child support, and income tax debts less than three years old.

So, where does small business debt fall? If you are filing Missouri or Illinois Chapter 7 bankruptcy to stop harassing creditor calls, get credit card debt help, or stop a wage garnishment, your debt must be primarily consumer debt. Chapter 7 bankruptcy discharges your personal obligation to pay a small business debt, if you are eligible. Does that mean that you can assume your small business debt is lost and gone forever? Not necessarily. Depending on how your business is structured, creditors may still take action to collect the debt from the business. Filing a chapter 7, however, does protect your personal interest in the debt; and since most lenders require small business owners to make a personal guarantee on any loan, this could be a great move to get yourself out from under your crushing debt.

The best move would be to contact a St. Louis Missouri or Belleville Illinois bankruptcy attorney who is experienced in handling small business debt in a bankruptcy case. Normally I recommend finding the best attorney in your area but, if you are filing bankruptcy as a small business owner, finding the best attorney in your area is absolutely critical. You may even be able to keep your small business with a Chapter 13 bankruptcy.

The roots of the American economy all lie in small business. Following your dreams to open a small business is not always an easy process. But, luckily, there are Missouri and Illinois bankruptcy lawyers who can help you keep your dream alive while also helping you handle the debt you?ve incurred in the process. How do you know when you’ve found the best bankruptcy attorney in your area? Most attorneys offer a free consultation but the best attorneys will offer you free information before you even step foot in an office. Look for an attorney who offers you free articles, blogs, and even free publications to help you understand how bankruptcy can help you.

Article Source: http://www.articlesbase.com/law-articles/how-does-chapter-7-bankruptcy-deal-with-small-business-debt-in-missouri-and-illinois-1811695.html

About the Author
Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can request a free copy at http://www.castlelaw.net

Arizona Foreclosure: How Bankruptcy Can Help You

Author: Steve Engram

If you’re like thousands of other Arizonans, you’re in danger of losing your home to a bank foreclosure. Fortunately, many are discovering the solution in what may seem the unlikeliest of places ? bankruptcy. Losing everything you own is just one of many Arizona bankruptcy myths encountered by Arizona Bankruptcy Now legal counsel over the past 15 years. In fact, with the help of an experienced Arizona bankruptcy lawyer who understands the law, you’ll likely keep your home, as well as your vehicle and other prized possessions too!

In most cases, homeowners facing potential Arizona foreclosure have been hard hit by adjustable rate loans. They started out with low payments they can afford, only to see the cost of their monthly mortgage rise beyond their reach. For many, the problem is multiplied by credit card debt and medical bills. Once they’ve exhausted all their options, hundreds of hardworking Arizonans just like you come to the same conclusion every single month ? they need the help of an Arizona bankruptcy attorney.

The bankruptcy process can be complicated and stressful. That’s why it’s imperative you seek the counsel of an experienced bankruptcy attorney who’s done it countless times ? not just anywhere, but here in Arizona where you live, as bankruptcy laws vary by state.

First, your attorney will help you decide which form of bankruptcy may be right for you. Chapter 7 eliminates much of your debt, including credit card and medical bills, freeing up extra money for you to make your monthly mortgage and car payments. Chapter 13 requires you to pay back what you owe over a specified period of time. It may also eliminate more types of debt than Chapter 7. Only an experienced bankruptcy attorney will know which option is best for your unique situation.

When it comes time to file your bankruptcy petition with the court, your lawyer is equally essential as paperwork errors mean revision and resubmission. It is critical to provide the court with a schedule of your assets and liabilities within 15 days of filing the petition. Miss this deadline, and the court dismisses the case.

If you are already in the middle of a bank foreclosure on your home, be sure to file your petition with the court before the foreclosure sale date on your property. That means consulting with an attorney as soon possible to allow enough time for preparation.

When it comes to keeping the home you’ve worked so hard for, your toughest decision could also be your smartest. Within months of your bankruptcy’s completion, you can start rebuilding your credit again. You can get the fresh start that bankruptcy law is intended to provide. To find out which form of bankruptcy may be right for you, contact an experienced bankruptcy lawyer for a free consultation.

Article Source: http://www.articlesbase.com/mortgage-articles/arizona-foreclosure-how-bankruptcy-can-help-you-474959.html

About the Author

Attorney Kirk Guinn advises and assists individuals and families statewide in Arizona with legal questions and concerns relating only to bankruptcy and real estate. He answers all questions and knowledgeably explains the tough questions that exist about bankruptcy and the new laws associated with it.

Low Cost Bankruptcy — How To Find An Affordable Bankruptcy Solution

Author: Roilee Mandeville

A low cost bankruptcy is essential for many people struggling with financial situations. Cutting costs everywhere, including cutting back on the cost of bankruptcy lawyer, is one of the most important steps to regaining financial balance. There are a number of tips for finding cheap bankruptcy solution that is right for you.

Filing for bankruptcy is a process that you can take on yourself. You will need to get an application for bankruptcy from court and fill it out completely. Keep in mind that some of these forms can run up to twenty pages. Remember that bankruptcy has long-term effects on your credit score, your financial situation and even legal consequences. This is one of the reasons that many people avoid filing for bankruptcy on their own even though there are cheaper bankruptcy alternatives.

Finding a Low Cost Bankruptcy Solution

Understand the costs of bankruptcy — there are some expenses that cannot be avoided but that may be able to be lowered through negotiation. There are also some expenses that you need to be aware of before starting the bankruptcy process so that you can begin saving for them.

1. Required credit counseling — the court wants to be sure that you will be able to stay out of financial trouble in the future.

2. Filing fees — there is no way around these fees so be sure that you plan on saving the $274 up to $299 that it will cost to file for bankruptcy.

3. Attorney fees — this is the amount that you will pay your lawyer and it is one of the easiest ways to help cut expenses and end up with an affordable bankruptcy. Take some time to call different lawyers and law offices to see which one will meet your needs at the price that you can afford.

You can also find some help getting a low cost bankruptcy on the internet. Visiting bankruptcy and legal websites will help you to understand the process and prepare for expenses. You can also research potential lawyers or law firms to see how other clients rate their experiences. Financial websites can help you to better understand the long-term ramifications of bankruptcy and give you tips on getting your financial situation under control for the future.

Take a moment to find a website that offers a free case evaluation to help you find the right bankruptcy lawyer in your area for your needs. You can use that information to choose the lawyer that will guide you to your cheap bankruptcy filing or you can let the information go. Make sure to look for the “no obligation to hire” guarantee. It’s better if you don’t need to give any credit card information just to get you free case evaluation.

Article Source: http://www.articlesbase.com/bankruptcy-articles/low-cost-bankruptcy-how-to-find-an-affordable-bankruptcy-solution-1459117.html

About the Author

Roilee Mandeville maintains a website dedicated to information on how to quickly find a cheap bankruptcy attorney in 10 minutes or less. You will learn a better way to research, compare prices and services when you visit http://www.BankruptcyLawyersAndAttorneys.com/ today. For a limited time he’s also giving away FREE e-books about saving money, debt, and a bankruptcy audio guide to help debtors deal with their financial problems. The free download will only be available for a few days so hurry and get them now!