Bankruptcy Information
Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different forms of protection. If you’re facing a financial crisis, a local bankruptcy attorney can help you determine whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be the right answer for you.
Generally speaking, Chapter 7 bankruptcy is intended to wipe the slate clean by discharging unsecured debt—debts like credit card debt, medical bills, and unsecured loans. Chapter 13 bankruptcy, on the other hand, is intended to give a debtor time to catch up past due payments over a period of 3-5 years, while keeping secured property like houses and cars.
Just complete this form & let Bankruptcy.me connect you with a bankruptcy attorney near you.The potential loss of a home is a tragedy and possibly the greatest reason most people file for bankruptcy. With the sub-prime loan debacle and its ensuing contribution to the downfall of the markets, foreclosures have spiked as well as bankruptcy filings in the last few years. Bankruptcy can delay or prevent foreclosure and is a powerful tool for those who want to retain their homes, but need time to reorder their finances to do so. This is especially true when other efforts have failed, such as sale, refinancing, or loan forbearance. Duluth bankruptcy lawyers have the knowledge and experience to guide you through this important process.
Filing a bankruptcy petition for either Chapter 13 or Chapter 7 results in the court issuing what is known as an automatic stay. This action “stays” or stops many actions, such as debt collectors’ harassing calls, evictions and foreclosures, but only under certain conditions:
• The lender cannot obtain a motion to lift the stay – If your lender can convince the court that you are unable to retain your home – you are in arrears, you have no equity in your home and, even after the bankruptcy, your finances do not appear to be adequate to make the payments, then the court will very likely grant the motion to lift the stay and the foreclosure will proceed.
• The foreclosure notice has not already been filed – Many states have laws that require lenders to give homeowners advance notice of a foreclosure, sometimes as long as three or four months. If, during that three or four months, you file for bankruptcy and the notice runs out before the bankruptcy is complete, the court will lift the stay and the foreclosure will proceed.
Arm yourself in advance with more knowledge on this process. Qualified Duluth bankruptcy attorneys can be a priceless tool as you work your way to recovery.
