Tag Archives: Foreclosure

What is the Automatic Stay in Bankruptcy?

Bankruptcy has several benefits if you are struggling with excessive debts and creditor collection actions. Filing for bankruptcy not only gives you the chance to discharge some of these debts, an automatic stay goes into effect after you file. The automatic stay prevents most creditors from making collection attempts. An automatic stay can: Delay an eviction. If you are facing an eviction for nonpayment of rent, then the automatic stay can temporarily delay the process. However, this would depend on the circumstances. The eviction could proceed if your landlord had already obtained a judgment before you filed for bankruptcy. Your landlord could also file a motion to lift the stay. Prevent foreclosure. The automatic stay can temporarily halt a foreclosure proceeding, even if you file for bankruptcy at the last minute. If you file for Chapter 13 bankruptcy, then your late mortgage payments would be combined with other debts in…
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Can I Modify My Chapter 13 Plan?

can help protect your most important assets, such as a home or vehicle. However, it also requires you to complete a three to five-year repayment plan. Each month, you will be required to pay the Trustee, who will then pay back your creditors. During this time, changes in your financial circumstances could make it difficult or impossible to complete your Chapter 13 plan. Depending on the circumstances, you may be able to file a motion to modify your Chapter 13 payments by: Decreasing the amount of your Chapter 13 payment by adjusting the amount paid to nonpriority unsecured creditors. Temporarily suspending your Chapter 13 payments. It may be possible to receive a temporary moratorium on payments that could last for several weeks. This may allow you time to resolve the financial situation that is causing you trouble. The requirements for modifying your Chapter 13 plan vary depending on the court….
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How Can I Improve My Chances of Completing a Chapter 13 Repayment Plan?

may allow you to keep important assets and discharge debts. However, it does require you to complete a three to five-year repayment plan. Unless this repayment plan is completed, the court will not allow you to discharge debts. In addition, creditors could seize your assets. Therefore, it is essential to complete the Chapter 13 repayment plan. There are several ways you can improve the odds of completing the payment plan, such as: Setting up automatic payments: According to research, districts that require automatic payments have higher Chapter 13 bankruptcy completion rates. In fact, out of the top 20 percent of districts with the highest completion rates, nine require debtors to make automatic payments. Instead of writing a check to the trustee each month, debtors have payments taken straight from their bank accounts. Follow your budget: It is essential to stick to your budget while making your Chapter 13 payments. Avoid…
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