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Bankruptcy Creditor Violations

July 16, 2010 By admin 10 Comments

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What is the Bankruptcy Automatic Stay

Author: LJ Adama

When you file for bankruptcy you have automatic stay, which is a injunction where creditors have to stop trying to collect debts from you.  The automatic stay is to protect and buy you time against pressing debts, while your awaiting your bankruptcy discharge.

This means upon filing for bankruptcy the automatic stay will come into effect and provide these assistance to you:

  • Creditors can no longer harass you with non stop phone calls

  • Creditors can no longer send you harassing letters in the mail

  • Will temporary stop any foreclosure on you home

  • It will stop any creditors lawsuits against you

  • Stop repossession on your property

  • You can stop your utilities: water, gas electric, from being shut down, for 20 extra days

  • Stop any wage garnishment, child support or alimony

The automatic stay will in effect until

  • the debtor receives a discharge, the automatic stay will then be replaced with a permanent injunction still prohibiting the creditors from the above actions

  • the item of property is no longer property of the estate; exempt property

  • a judge lifts the stay due to the request of a creditor

There are a few things that are not covered in the automatic stay such as; criminal proceedings, actions for a family support order, actions to collect support that is not property of estate and tax audit, demand for tax returns or assessment of tax.

So the automatic stay has can provide relief for a lot of your financial stresses, while you await your bankruptcy finalization and you receive a discharge.  Also you have the ease of mind that anyone, like creditors, who knowingly violates the automatic stay, will be liable for damages caused by their violations and has no legal effect.

Article Source: http://www.articlesbase.com/credit-articles/what-is-the-bankruptcy-automatic-stay-621099.html

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Understanding Bankruptcy to Handle the Process Better

February 4, 2010 By Aaron M. Carberry Leave a Comment

The term Bankruptcy means the legally declared inability of an individual or an organization to pay their credits. Involuntary bankruptcy is the situation in which the creditor may file a bankruptcy petition against a debtor to recover a portion of the amount dues him. Generally in a majority of cases, bankruptcy is initiated by the debtor known as

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Alternatives to Bankruptcy

February 4, 2010 By Aaron M. Carberry Leave a Comment

As anyone who has seriously examined Chapter 7 bankruptcy protection knows all too well, filing bankruptcy may be the absolute worst thing that borrowers can do to improve their financial position. For desperate folk suddenly realizing that there is little they can do on their own to achieve debt relief, bankruptcy might seem like an attractive possibility. After all, from our earliest memories, Americans are taught to respect bankruptcy as the (for whatever reason) dignified end to debt crises. Whether playing board games or watching cartoons, we

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Bankruptcy Pros and Cons – Bankruptcy Questions Answered to Find the Light at the End of the Tunnel

January 10, 2010 By admin Leave a Comment

There a few feelings worse than being harassed by creditors calling you at your office and at home at all hours of the day. That nasty feeling in your stomach every single time the phone rings and that you are fully aware that it is going to be someone from any of your credit cards or mortgage payments to remind you that you are past due or worse, to threaten you with lawsuits and wage garnishments. There are so many different reasons why you are behind. Perhaps you lost your job or got a big pay cut due to the economy. Perhaps you had to face a medical emergency after you lost your income and fell behind on your payments and now you are in very deep hole and you don't know what to do and you are considering all the bankruptcy pros and cons.

Firstly, please relax and know that the law affords you the protection of a bankruptcy filing. There are many myths involved when it comes to filing but some of the most common bankruptcy pros and cons are these:

Pros

1. You will put a stop to creditors harassing calls. By law they can't call you anymore
2. You will get a break and instead of struggling to make minimum payments you will be able to start saving little by little until you are back on your feet
3. Most of your debts will be wiped clean with a court ordered discharge allowing you a clean slate to start anew
4. You will be able to begin rebuilding your credit as soon as a few months after your discharge

Cons

1. The bankruptcy discharge will stay on your credit report up to 7 years
2. You may experience a sense of defeat because you had to file
3. You may not be able to access lower rate credit plans in the near future
4. It may be difficult for you to obtain credit a few months after the discharge

In reality, the pros far outweigh the cons because it will allow you to get back on your feet quicker. Paying the minimum payments will take you many years before you can get rid of that debt. With bankruptcy chapter 7 or chapter 13 you will be debt free far quicker.

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