The bankruptcy automatic stay is the first major benefit for the debtor when a case is commenced. Immediately after the filing fee is paid and a bankruptcy petition is filed, virtually every type of collection activity is called to a halt. An order is entered by the bankruptcy court under 11 USC §362 prohibiting nearly [...]
Automatic Stay In Bankruptcy
A creditor with a security interest in property, such as a car, that is repossessed, must return the property after the owner files bankruptcy. Failure to immediately return the property is a violation of the automatic stay, according to the In re Thompson case decision by the 7th Circuit Court of Appeals, a position pioneered [...]
Folks frequently come in to talk about bankruptcy and are very concerned that an arrest warrant may be issued as they haven’t paid their debts — either before filing bankruptcy or even after filing for bankruptcy. They have heard about phone calls or emails from debt collectors (or have even gotten those kind of threats) [...]
Do you receive late notices and collection letters in the mail? You probably opened them at first, but now do you just throw them in an unopened pile, hoping to deal with them later – and later never comes? Are you tired of explaining why you have not paid a bill, embarrassed telling complete strangers [...]
When a creditor obtains a court judgment against a debtor, wage garnishment can be soon to follow. Most persons subjected to wage garnishment will consult a lawyer to see if it can be stopped, and many of those will file either chapter 7 or chapter 13 bankruptcy to stop the wage garnishment. While stopping a garnishment through [...]
A U.S. bankruptcy court in California agreed with a chapter 13 debtor that the terms of his chapter 13 plan could prevent a foreclosure, even though he had previously filed a chapter 13 which was dismissed in the one year prior to his second case. Mortgage banks will consider this ruling to be an “end run” [...]
