Some debtors file for BK protection so often, they annoy the court, and have been considered "serial BK filers". Here is a summary of some recent changes to laws to help stop serialbankruptcy filers:
Most people, actually most business owners, are not comfortable with the bankruptcy system. They are hardly knowledgeable on bankruptcy procedures and laws and usually have a hard time understanding the processes involved. Searching for legal help from a seasoned bankruptcy attorney consequently, can be your very best strategy.
Your first source of information in finding your experienced attorney is to inquire from your friends and relatives. Well, this is usually the first line of action. If you no name is provided by these people, do not hesitate to search online. The web is a big source of information. Lawyers, doctors, engineers, architects and businesses all make use of the internet to inform the public of their availability. You will always find through the internet the legal counsel who can help you in your financial crisis.
Bankruptcy is a very serious process and even though it is going to help to get debtors off your back and wipe your slate clean, there are also going to be some serious repercussions that you are going to have to deal with so bankruptcy is only right in certain situations.
A mortgage loan amounting to $300,000, for example, on a home that has declined in value to $230,000 would be reduced to $230,000, with the difference of $70,000 considered as unsecured debt to be repaid with disposable income.
The bankruptcy lawyer can discuss the options that are available to you. For example, you might be able to pay off only some of the money that you owe and give up some of your property. Some people are able to keep some of their property or the majority of it. Paying the debts can be worthwhile, but challenging, especially if you have to agree to a plan that will take several years to pay off.
The automatic stay that prohibits creditors from enacting collection efforts against you will only last 30 days. During that time, if you are unable to get current on your mortgage payments and make payments going forward, you will likely face foreclosure again. Exemptions in bankruptcy allow debtors to keep their home, but it is often misunderstood that this does not automatically mean that you get to keep your home even if you are not making payments on it. With either bankruptcy chapter, you will need to make your monthly mortgage payments on time and in full going forward to avoid foreclosure.
Chapter 13 attorneys are more geared towards bankruptcy filings for small businesses and individual wage earners. Like Chapter 11 bankruptcies, the lawyers are prepared to help the debtor file a recovery plan, get it approved by the court, and execute the plan.