Chapter 11 Bankruptcy Law


Chapter 11 Bankruptcy Law

Articles: (Updated Frquently)

Stopping Foreclosure with Bankruptcy

By: Jimmy Cox

Bankruptcy Will Stop Your Sale - At Least For Now
For $395, you can stop your sale- at least that is what the ads say. You are about to find out how bankruptcy can be good or very damaging.

Bankruptcy will stop your foreclosure sale. It's a fact. However, filing bankruptcy for the sole purpose of stopping foreclosure is not what bankruptcy is for. And anyone that does this to avoid foreclosure is in violation of bankruptcy laws. Here is some basic information on bankruptcy.

What Is Bankruptcy?

There are two types of bankruptcy, Chapter 7 and Chapter 13. Filing for a Chapter 7 bankruptcy means you are asking the courts to completely discharge your debts. Filing for a Chapter 13 bankruptcy is when you set up a court- approved plan to repay your debts.

Now, the two types of bankruptcy:

1.Chapter 13: Chapter 13 bankruptcy is a repayment plan that will restructure your arrearage. More than 95% of all Ch. 13 bankruptcies filed fail. When you file the Ch. 13, this will postpone your foreclosure sale until the meeting of creditors also known as a 341 meeting. This usually takes place 60-90 days after you file. Also, when you file a Ch. 13, you are paying for 2 attorneys, your attorney to file and another to take payments and disperse the money to the creditors. At the meeting, you will have to face your creditors. Many times this can be very intimidating. The bank will ask for their money or for the judge to give them a relief of stay. The relief of stay is asking for the foreclosure to continue. If granted the attorney will re-start the foreclosure process over with a set foreclosure sale date around 30-45 days later. IF you do not have some money for reinstatement for the Mortgage Company or bank, the judge will likely grant the relief of stay. As you can see, bankruptcy will stop your sale, but it is only temporary. Now, you have to deal with the foreclosure process all over again plus now your credit is in worse shape than before because you now have a filed bankruptcy that is showing up on your credit file.
2.Chapter 7 – A Ch. 7 bankruptcy is when you request complete debt relief. When you file a Ch. 7, you are trying to receive a discharge from all your debts that you list in your bankruptcy. If you get a discharge, this will relieve you of all your debts that are listed. Now, the bank can still get a relief of stay with a Ch. 7 Bankruptcy. Even if you receive a discharge, the bank can still take the home through foreclosure. When you get a discharge this relieves you from the debt and the responsibilities of the debt, however the Mortgage is attached to your house as a protection for the bank and their interest. Therefore, the bank can foreclose even if you have received a Ch. 7 discharge.

Bankruptcy will destroy your credit rating, therefore be careful when you speak with Bankruptcy Attorneys, this may be the only option that they know of. In other words, when you talk to someone that does bankruptcies they will influence you to file bankruptcy, when you talk to a mortgage officer or bank official, they will want to influence you to get a loan because that is what bankers do, if you talk to an investor they want to buy your house, because that is what investors do, SO be careful and look out, find someone that does not have an agenda that can give you strategic advice regarding your current situation. The rate of people that declare bankruptcy for a second time is as much as 50%. In some instances, bankruptcy may be a good choice, but all too often it causes more stress and problems for the individual. So try to resolve without the use of bankruptcy.

Jimmy Cox
www.365homenet.com

About the Author

None

Keywords: bankruptcy bankruptcy is when, bankruptcy will stop, will stop, bankruptcy will, bankruptcy, foreclosure sale, types of bankruptcy, foreclosure, will

Bankruptcy News: (Updated Frquently)

Watch the latest videos on YouTube.com

Helpful Links:

Chapter 11 Bankruptcy Law - Overview
Information on Chapter 11 bankruptcy law. Chapter 11 includes sole proprietors, partnerships and corporations. Bankruptcy Attorney Henry Rendler, San Jose/Silicon Valley, California. ... Chapter 11 Bankruptcy. Chapter 11 bankruptcy is a reorganization procedure used by businesses, including sole ... in regards to Chapter 11 bankruptcy, the law office of Henry Rendler ...

Bankruptcy Law, Chapter 7, 11 & 13 Attorneys in Bellingham, Washington
Law Offices of Steven C. Hathaway, P.C. focus on bankruptcy, chapter 7, chapter 11, chapter 13, creditor harassment collection, irs.

Chapter 11 Bankruptcy Law Firms
Chapter 11 Bankruptcy Law Firms Knowledge Base. Chapter 11 Bankruptcy Law Firms Resource Center.

Texas Bankruptcy Law
Guide to. Texas Law. Texas Bankruptcy Law ... Chapter 11 is designed to preserve a viable business that otherwise would be lost in a liquidation. The Bankruptcy and Workout Law Chapter contains more information about Chapter ...

Welcome to the Legal Information Institute
New from the LII. Law Events in the News. September 29 - John Roberts sworn in as Chief Justice of the U.S. Supreme Court ... Commerce. Enterprise Law. Business Activities or Sectors ... Taxation. Constitutional Law. Family Law. Employment Law ... See LII's Law about... bankruptcy, Federal Rules of Bankruptcy Procedure ...

Chapter 11, Title 11, United States Code - Wikipedia, the free encyclopedia
Chapter 11, Title 11, United States Code. From Wikipedia, the free encyclopedia. Chapter 11 of the Bankruptcy Code governs the process of reorganization under the bankruptcy laws of the United States. (

California Bankruptcy Law - Chapter 7, 11, 13 Information
California Information pertaining to personal and corporate bankruptcy law. Includes Chapters 7, 11 and 13 bankruptcy law. Attorney Henry Rendler, San Jose/Silicon Valley, California. ... bankruptcy law website will offer basic, general information about filing bankruptcy in California, including Chapter 7, Chapter 11 ... under Chapter 11. Bankruptcy is often ...

US CODE: Title 11,TITLE 11â€”BANKRUPTCY
Skip to content. US Code collection. collection home. faq. search. donate. TITLE 11. TITLE 11â€”BANKRUPTCY. Release date: 2005-07-12. CHAPTER 1â€”GENERAL PROVISIONS. CHAPTER 3â€”CASE ADMINISTRATION. CHAPTER 5â€”CREDITORS, THE DEBTOR, AND THE ESTATE

Additional Links >>

Click here to add your link to our directory >>

online-bankruptcy-lawyer.com