Benefits Of Filing For Bankruptcy: Automatic Stay When You File
One of the benefits of filing for bankruptcy is the automatic stay. Once you have filed your paperwork with the Bankruptcy Court, an automatic stay immediately goes into effect.
The automatic stay provision prevents creditors from making direct contact with you. As well as prohibiting them from staking a claim on any of your property from the day of filing forward. That means it will stop an foreclosure or repossession proceedings. The automatic stay also stops any harassing contact from credit agencies. And stops any garnishments that are coming out of your paycheck. Continue reading
What Do I Need To Be Able To File For Bankruptcy Or To Consult With An Attorney?
Generally at an initial consultation for bankruptcy, it is not necessary to bring all your financial papers. However, if you choose to move forward with legal representation with an attorney you will need to gather some documentation about your finances so your attorney can complete the necessary paperwork to file for bankruptcy. So it is a good idea to do some bankruptcy prep work.
Bankruptcy Prep Work
To begin the bankruptcy process it is best if you are able to itemize your current income sources; major financial transactions for the last two years; monthly living expenses; debts (secured and Continue reading
What Are The Different “Chapters” Of Bankruptcy And What Do They Do?
Under Federal bankruptcy laws, there are a variety of different types of bankruptcy, or chapters. Those different chapters are commonly used for different people or entities with different kinds of debt.
Chapters of Bankruptcy
There are four bankruptcy “chapters”:
- Chapter 7 is the most common type of bankruptcy for individuals. It is known as “straight” bankruptcy or “liquidation.” It involves the liquidation of non-exempted property to pay creditors.
- Chapter 11, is commonly used by businesses and business entities, however individuals can use this form of bankruptcy as well. It is known as “reorganization”, is generally used for entities and individuals whose debts are particularly large.
- Chapter 12 is reserved for family farmers.
- Chapter 13 is the other type of bankruptcy commonly used by individuals. It is called “debt adjustment”. It requires a debtor to file a plan to pay debts (or parts of debts) from current income.