Filing Chapter 7 Bankruptcy Shares the Benefits of the Automatic Stay
One of the most powerful benefits when filing Chapter 7 bankruptcy is the automatic stay.
While all chapters of bankruptcy filing share the power of the automatic stay, Chapter 7 is most known for its use.
Most people file bankruptcy to get their creditors off their back.
This is because of the automatic stay.
The stay is so powerful it will stop all collection as well as any legal activity against the debtor.
The list is pretty large and includes stopping foreclosure, lawsuits, judgments and wage garnishments.
If the creditor feels the need to speak to the debtor they will have to do it through the bankruptcy attorney.
When the real estate market crashed back in 2007, many people were looking for ways to stop foreclosure and keep their family home.
Many of these individuals turned to a bankruptcy attorney for help.
Everyone's situation is different and that's why it's not best to make a decision about filing bankruptcy without speaking to an attorney.
Generally speaking, Chapter 13 bankruptcy is best for those people that are trying to protect their homes from foreclosure.
In some cases Chapter 7 bankruptcy will work but it depends heavily on the type of debt the individual incurred.
In the case of a Chapter 13, the bankruptcy attorney and their client will have to submit a repayment plan to the court that will last 3 to 5 years.
This allows a person to keep any property they believe they can afford to hang on to.
At the end of the Chapter 13, just like in a Chapter 7, the person will get a bankruptcy discharge that will wipe out any left over unpaid debts.
All of this is possible because of the power of automatic stay.
How the automatic stay works is it starts at the time of filing the bankruptcy petition.
At the time of preparing the bankruptcy petition, the bankruptcy attorney will have their client send an entire list of the creditors to be listed on the schedules.
Some courts require the bankruptcy attorney to supply a floppy disk with the list of creditors and their current addresses so it's easier for them to notify the creditor.
When the bankruptcy petition is filed with the court, technically, the automatic stay goes into place stopping all collection activity against the debtor.
Within a week or so that creditors will be notified of the pending bankruptcy filing.
If the creditors call prior to being notified, all the debtor needs to do to his forward them to their bankruptcy attorney or give them the bankruptcy filing number.
If the creditors have been notified and continue to call they will be in violation of the automatic stay and could have sanctions placed against them.
While all chapters of bankruptcy filing share the power of the automatic stay, Chapter 7 is most known for its use.
Most people file bankruptcy to get their creditors off their back.
This is because of the automatic stay.
The stay is so powerful it will stop all collection as well as any legal activity against the debtor.
The list is pretty large and includes stopping foreclosure, lawsuits, judgments and wage garnishments.
If the creditor feels the need to speak to the debtor they will have to do it through the bankruptcy attorney.
When the real estate market crashed back in 2007, many people were looking for ways to stop foreclosure and keep their family home.
Many of these individuals turned to a bankruptcy attorney for help.
Everyone's situation is different and that's why it's not best to make a decision about filing bankruptcy without speaking to an attorney.
Generally speaking, Chapter 13 bankruptcy is best for those people that are trying to protect their homes from foreclosure.
In some cases Chapter 7 bankruptcy will work but it depends heavily on the type of debt the individual incurred.
In the case of a Chapter 13, the bankruptcy attorney and their client will have to submit a repayment plan to the court that will last 3 to 5 years.
This allows a person to keep any property they believe they can afford to hang on to.
At the end of the Chapter 13, just like in a Chapter 7, the person will get a bankruptcy discharge that will wipe out any left over unpaid debts.
All of this is possible because of the power of automatic stay.
How the automatic stay works is it starts at the time of filing the bankruptcy petition.
At the time of preparing the bankruptcy petition, the bankruptcy attorney will have their client send an entire list of the creditors to be listed on the schedules.
Some courts require the bankruptcy attorney to supply a floppy disk with the list of creditors and their current addresses so it's easier for them to notify the creditor.
When the bankruptcy petition is filed with the court, technically, the automatic stay goes into place stopping all collection activity against the debtor.
Within a week or so that creditors will be notified of the pending bankruptcy filing.
If the creditors call prior to being notified, all the debtor needs to do to his forward them to their bankruptcy attorney or give them the bankruptcy filing number.
If the creditors have been notified and continue to call they will be in violation of the automatic stay and could have sanctions placed against them.
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