Individuals have several options when filing bankruptcy. Chapter 13 is often preferred for individuals with regular income who wish to keep their homes that have equity and other secured assets. In a Chapter 13 filing, the court will approve the debtor's three to five-year payment plan, which generally provides for curing any pre-petition delinquency, maintaining payments on secured debt, and a payment to unsecured creditors based on the debtor's disposable income. The debtor will receive a discharge at the completion of the plan.
NEW DEBT LIMITS FOR CHAPTER 13 BECAME EFFECTIVE APRIL 1, 2019
The Threat of Foreclosure
The threat of foreclosure can be an incredibly unnerving experience. Despite your best efforts, you have been unable to keep up with your mortgage payments, which has led to the stress of phone calls, notices, and threats that you will lose your home. And to make matters worse, mortgage lenders are not forgiving and will not always show you the flexibility you need in modifying your mortgage.Foreclosure Defense
Besides attempting to modify a loan or work with the lender to avoid foreclosure, it is also advisable to speak with an attorney about answering the lawsuit and raising a foreclosure defense. You are entitled to due process of law, and some defenses that have been successfully raised include lender fraud, the lender's lack of the original note, servicing abuse by the lender, and "truth in lending" law violations.
Unfortunately, if your debt is continuing to spiral out of control or you are facing imminent foreclosure actions--such as a sheriff's sale, then it is advisable to simultaneously understand how bankruptcy may help you when it comes to foreclosure.
Bankruptcy and Foreclosure
Chapter 7 and Chapter 13 bankruptcy both offer relief to people who are overwhelmed by debt. Often, debt struggles go hand in hand with an inability to keep up with mortgage payments. When experiencing debt problems and a risk of foreclosure, bankruptcy can help to delay or avoid foreclosure proceedings.One of the great benefits of filing for bankruptcy is the automatic stay that comes with it. This temporary injunction creates immediate relief by halting collection actions by creditors. This means that harassing calls and letters, as well as repossession efforts, and pending lawsuits must cease while the stay is in effect. Significantly, the automatic stay also immediately stops foreclosure action.
Secured and Unsecured Debt and Why it Matters in Bankruptcy
If you are in debt and are considering filing bankruptcy, one of the main questions on your mind is likely whether the bankruptcy will discharge (eliminate) your debt. The answer depends heavily on whether your debt is secured or unsecured. Having a basic understanding of how each type of debt is treated in bankruptcy can help you decide whether bankruptcy is right for you and which type of bankruptcy you should file.
QUESTIONS TO ASK A BANKRUPTCY ATTORNEY DURING YOUR INITIAL CONSULTATION
When you're thinking about filing for bankruptcy there are many factors that need to be taken into consideration. During this difficult time, it's critical that you hire an experienced and knowledgeable bankruptcy attorney to guide you through the process. At Levitt & Slafkes, P.C. we provide free initial bankruptcy consultations and will answer your questions. So how do you decide who is most qualified, who you can best work with and what you can expect from your bankruptcy attorney? Here are the top 6 questions which we believe you should ask, and the attorney should answer during your initial consultation.
Don't Let Social Media Ruin Your Bankruptcy Case!
Social media sites such as Instagram, Facebook and Twitter keep getting more popular. These sites have impacted many aspects of society, including the practice of law. While social media sites offer people a chance to connect with friends and family across distances, many people share a lot of personal information online.
Can I File for Bankruptcy If I Have a Reverse Mortgage?
How Does A Reverse Mortgage Work?
What are the Tax Consequences of Settling Credit Card Debt?
If you are looking for an alternative to filing for bankruptcy protection, you may be considering settling your debt. In debt settlement, you negotiate with your lender(s) to pay a smaller amount than what is owed as payment in full. While this may seem like the perfect solution to your money troubles, debt settlement does not come without its disadvantages.
Can Social Security Overpayments be Discharged in Bankruptcy?
Unless you have committed fraud, they are dischargeable.
Can Creditors Take My Social Security?
This is a frequent worry of individuals who rely on their Social Security check to live.
WHAT HAPPENS TO MY TAX REFUND IF I FILE BANKRUPTCY?
This question comes up every tax season. You're looking forward to receiving a tax refund check and you also want to get your bankruptcy case filed. So, what happens to your tax refund in a bankruptcy case?
If you are planning to file a personal bankruptcy and you are expecting a tax refund, it is essential that you confer with us as soon as possible to make certain your refund is protected. This blog will provide general guidance, but it is important that we review your individual circumstances and determine the best strategy for you.
