The Basics Of Filing Personal Bankruptcy
General Information about Ch. 7 and Ch. 13 Bankruptcy
Deciding to file for bankruptcy can be difficult. It can also be a fresh start toward a new
life. The type of bankruptcy that is best for you depends upon your individual situation.
To learn some of the basics about the different types of bankruptcy and how they work, please read on. To discuss filing bankruptcy with a bankruptcy attorney, please fill in the Free, No Obligation Evaluation Form. You will be contacted by a local bankruptcy attorney who will talk with you and help you evaluate the best course of action for your specific situation.
Just taking these first steps will help you feel better, and will help you take control of your financial future. Read more
Bankruptcy and Home Foreclosure
If owning a home is part of the American dream then foreclosure may be part of the American nightmare.
But home foreclosure has become a common occurrence in much of the country. As the housing bubble burst, many people have found themselves owing more to a mortgage that is more than their house is worth. Others saw their mortgage payments jump up to unmanageable levels. These people may have felt helpless, but the truth is there is home foreclosure help available.
Even if the foreclosure has already begun, there are steps you can take to save your home for today and the future.
One of the most significant and impactful steps you can take may be filing for bankruptcy.
Filing bankruptcy is designed to provide strong legal protections for your home that can help you stop foreclosure and give you the opportunity to get your past due mortgage payments up to date.
How the Bankruptcy Automatic Stay Is Designed to Stop Foreclosure
When you file bankruptcy – whether Chapter 7 or Chapter 13 – the automatic stay kicks in.
The automatic stay is a court order that puts an immediate stop to all collection actions. Bankruptcy courts consider foreclosure a type of collection, along with:
•Phone calls
•Bills
•Wage garnishment
•Repossession Read more
Qualifying to File Chapter 7 Bankruptcy
Of all the bankruptcy options, Chapter 7 may be the most dramatic. Typical cases take only a few months, and are designed to completely eliminate all of a filer’s debts related to credit cards, medical bills, utility bills and personal loans.
Because Chapter 7 bankruptcy can be so effective and sweeping when clearing out unsecured debts, Congress established a set of requirements that must be met before a person is able to file.
The Bankruptcy Means Test
The bankruptcy means test, as it is known, was part of the new bankruptcy laws of 2005. In order to file Chapter 7, you’ll need to pass the means test.
The good news is, the means test is not an actual exam. It is a measurement of “true need,” and a bankruptcy lawyer can take you through the test and, in short order, let you know if you qualify.
Basically, it works by taking into account your income, your debt and the size of your family, to determine if you truly do need Chapter 7 bankruptcy.
This may sound intimidating, but it’s not designed to be the roadblock it may seem. The means test is in place to prevent people from taking advantage of the system. That’s a testament to the power of Chapter 7 bankruptcy. Read more
Could Chapter 13 Bankruptcy Save Your Home From Foreclosure?
You May Be Able To File Bankruptcy And Keep Your Home
Times are tough. If you’ve fallen behind on your mortgage payments, you’re certainly not alone in your struggle. In fact, a foreclosure occurs every 13 seconds in the United States, according to The Center for Responsible Lending. But just because you may be facing bankruptcy, it doesn’t necessarily mean that you must lose your home to foreclosure. If you act quickly, you’ll likely have debt-relief options that could help protect your home.
One of those debt-relief options may be filing Chapter 13 Bankruptcy.
How Does Bankruptcy Stop Foreclosure?
When a person files for bankruptcy, the automatic stay typically goes into effect right away.
Under the stay, creditors are court-ordered to stop all collection efforts, which include:
• foreclosure
• repossession
• some lawsuits
• most wage garnishments
• harassing phone calls & letters
Millions of Americans with money problems, and facing foreclosure on their home, have sought the protection of the automatic stay, and filed Chapter 13 bankruptcy to save their homes. Read more
How To Use This Site And It’s Resources (Please Read!)
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The information contained on this website is intended to be informational only, it is not legal advice. Bankruptcy issues, and questions having to do with filing for bankruptcy, tend to be very individual and can be complex. You should consult with a bankruptcy attorney licensed to practice in your state for advice about your particular situation before making any decisions.
The free, no-obligation evaluation, that is found on FilingBankruptcy.org, can be used to gain access to an attorney in your area. It is important to speak with a local attorney about your specific financial situation, before making any decisions.