How Often Can You File Bankruptcy
Now that you are familiar with how each chapter in bankruptcy works, you can decide which one may be right for you. If you have previously filed but may need to file again, you may need to find out if you qualify to file a second time.
There is no limit on how many times you can file bankruptcy of any chapter. But, you do need to qualify. There are time limits in place between bankruptcies. These limits keep people from abusing the system.
Wage Garnishment And The Automatic Stay
In most cases a creditor must file a lawsuit, receive a judgment, and then request a Writ of Garnishment in order to take money from your bank account or garnish your paycheck. However, certain creditors, such as the IRS or student loan providers, do not need to take you to court. Regardless, filing bankruptcy will stop even these creditors from further garnishment and collections.
The automatic stay will stop a garnishment at any point. If you are concerned you will be garnished shortly or have already been garnished, then the bankruptcy filing will put an immediate stop to any further money being taken. In certain circumstances, your bankruptcy attorney can even get your money back. If it is important to stop a garnishment right away, your bankruptcy attorney can file your case and immediately get in contact with the appropriate people to stop any further garnishment.
Its Possible But Youll Need To Rebuild Your Credit Before You Apply
If its the American Dream to own a home, then going through bankruptcy or foreclosure very well may be the American Nightmare. But if youve filed for bankruptcy or been through a foreclosure at some point, all is not lost. Its still possible to obtain a mortgage in the future if you follow these steps.
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How To File An Emergency Bankruptcy Petition
In most cases, you can file an emergency bankruptcy petition by completing the following forms:
- Form 101 – Voluntary Petition for Individuals Filing for Bankruptcy
- Form 121 – Your Statement About Your Social Security Numbers
- the names and addresses of all of your creditors
- a credit counseling certificate requirement or a waiver request, and
- a filing fee, a request for a fee waiver, or a request to pay the fee in installments.
Some courts might require additional forms. You’ll want to check with your local bankruptcy court to learn the requirements in your district. You can find it using the Federal Court Finder. The official bankruptcy forms are on the U.S. Courts bankruptcy form webpage.
Again, after filing the emergency petition, you have 14 days to file the rest of the required bankruptcy forms and schedules. Failure to do so will typically result in the dismissal of your case without prejudice .
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Can I refile my bankruptcy case after it is dismissed?
Sometimes, people file for bankruptcy on the eve of foreclosure to delay the foreclosure, but they have no real plan of action to try to save the home or to liquidate their assets to pay their debt.They simply file the petition and dismiss it later on. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 addressed this situation. The act provides that if a debtor files a new bankruptcy within one year after the dismissal of an earlier case, the automatic stay terminates in the second case 30 days after filing the second case, unless the debtor proves that the filing was in good faith. Further, if a debtor files a third case within the one year period, theautomatic stay does not apply unless the debtor proves that the third case was filed in good faith.
In all of these examples, it is presumed that the Court did not make any findings of bad faith when the debtors case was dismissed. In the event the Court made a finding that a debtor dismissed a case in bad faith, Section 109 of the Bankruptcy Code provides that a debtor is ineligible to re-file bankruptcy for six months after the dismissal of his or her last bankruptcy. Further, if a creditor files a Motion to Lift the Automatic Stay before a debtor files a Motion to Dismiss his or her case, the debtor cannot re-file the case for six months.
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What Happens To Your Credit Score After Filing Bankruptcy
Chapter 7 bankruptcy and Chapter 13 bankruptcy filings show up on your credit report. How long it shows up depends on which type of bankruptcy you file. Chapter 7 bankruptcy stays on your credit report for 10 years after the filing date. A completed Chapter 13 bankruptcy stays on your credit report for 7 years after the filing date, or 10 years if the case was not completed to discharge.
As a result, filing bankruptcy will initially lower your credit score. How much your credit score will drop depends on how high or low it was before bankruptcy. Generally, a decrease between 100 to 200 points can be expected.
The good news is that you can begin rebuilding your credit as soon as your bankruptcy discharge is entered. It’s possible to have a better score within 1â2 years of filing. The credit scores of most bankruptcy filers are already lower because of missed payments. After the court grants a discharge, most unsecured debts are erased. Credit scores improve because there are no more missed payments and discharged accounts show a zero balance.
After Chapter 7 and Chapter 13 bankruptcy is filed, you will get credit card offers in the mail. These offers can be for secured credit cards, sometimes called prepaid cards, which require a cash deposit. Or, offers can be for unsecured credit cards, but will likely have high interest rates or annual fees.
Dealing With Your Vehicle
One of the forms you will file with the bankruptcy court is called the Statement of Intention. In this form, you tell the court what you plan to do with property that is securing a debt you owe, like real estate or a vehicle.
If you own your vehicle but are still paying on the loan, you have a few options on how to deal with it in Chapter 7 bankruptcy.
Reaffirmation
You can reaffirm the debt, keep your vehicle, and continue making payments. This means the debt will not be discharged and you will continue making monthly payments during and after bankruptcy. If you miss future payments the lender will have the right to repossess the vehicle and possibly try to collect on any deficiency between the balance you owe and the amount they get when selling the vehicle.
If you select this option in your Statement of Intention, your car lender will send you a reaffirmation agreement for you to complete and return. In some bankruptcy cases a reaffirmation hearing will be scheduled.
Surrender
If you choose to surrender your vehicle, then it will be repossessed and the debt will be discharged in your bankruptcy. Filers with high car payments they can’t afford often choose to surrender their car to get out of the debt.
Redemption
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Can A Mortgage Company Take Money From Your Bank Account
In a Nutshell After a foreclosure, a mortgage company can pursue you for the difference in the proceeds of the sale of your home and the remaining balance. They can use all the collection techniques that other creditors use. They can garnish your wages, levy your bank account, or place a lien on things you own.
What Can Ny Bankruptcy & Foreclosure Lawyers Do For You
Our firm understands that its scary having defaulted mortgages and other debts hanging over your head. Having a navigating hand throughout this process is invaluable. As a debtor, youll be less vulnerable with an attorney in your corner. Bankruptcy and foreclosure in NY are different than in most other states.
On top of that, New York requires judicial foreclosures. This means that your lender will have to sue you in court and win before taking possession of your house. As you can tell, an experienced real estate attorney is the key to favorable results. Continue reading below to have a better understanding of the available options for foreclosures in New York.
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Aug What Happens To A Foreclosure If You File Bankruptcy
There are many posts in these pages and on Mortgage Law Network about the types of foreclosures and the fact that a bankruptcy filing can stop the process. But what happens then? Just because in most states a bankruptcy stops a foreclosure , it doesnt end it.
The foreclosure process, in spite of the bankruptcy often continues. When a bankruptcy is filed, however, the automatic a stay that is created will stop any further proceeding. The stay lasts until one of two things happens: the bankruptcy ends by discharge or dismissal, or the creditor gets the court to grant them relief from the stay to go forward.
There is a provision of the bankruptcy code ), however, that if the property is needed for an effective reorganization of the debtor in a chapter 13 bankruptcy, and the debtor is able to make normal monthly payments than the mortgage company cant foreclose. But the filing of a chapter 13 doesnt end the foreclosure process it merely stops it. The mortgage company, if notice of sale has already been filed, can appear at the time and place of sale and continue it to another date to see if the bankruptcy has been dismissed by then. And, unless you were present when the change in sale dates was announced, they dont have to tell you when or where the next sale is scheduled.
I guess the good news is that after a year, the mortgage company would have to send new notices of a sale if it wanted to go forward.
How Can Bankruptcy Help With Foreclosure
When youre facing foreclosure and you want to file for bankruptcy, you can choose between Chapter 7 and Chapter 13.
A Chapter 7 bankruptcy will temporarily stop the foreclosure proceedings for a period through an automatic stay order from the court. During that time, your assets will be used to settle your debt, including unsecured debt.
This type of bankruptcy allows you to seek alternative measures like selling your other real estate assets so that you can settle your missed mortgage payments and bring your loan current. Otherwise, the foreclosure proceedings will continue once the provision has been lifted. Your home, inevitably, will go on foreclosure sale.
Meanwhile, a Chapter 13 bankruptcy will allow you to save your home, but it wont stop foreclosure permanently. A Chapter 13 bankruptcy involves negotiating a repayment plan with your mortgage lender, which you need to follow until youve paid off your arrears.
Provided that you made the mortgage payments as expected, you can stop a foreclosure sale and keep your home. If you dont, the lender can trigger another foreclosure proceeding.
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Can Chapter 13 Stop Foreclosure
Yes, filing for Chapter 13 can stop a foreclosure action. A Chapter 13 bankruptcy in New York can allow you to create a repayment plan for any past due mortgage payments. To save your home, you must at least be able to afford your current mortgage payments while making the payments toward the unpaid late payments. You will have up to five years to pay back your past due payments in a court-ordered Chapter 13 repayment plan. If you can make both your payments, it is likely that you will be able to keep your home
Differences In Chapter 7 V Chapter 13 Bankruptcy And Foreclosure
The type of bankruptcy filed will determine whether the foreclosure will just be postponed or whether you will be using bankruptcy to pay back arrearages and keep your home.
Chapter 7 bankruptcy will stop foreclosure on your home however, since Chapter 7 bankruptcy does not have a plan of reorganization, then Chapter 7 is only a temporary solution to stopping foreclosure. Once the foreclosing mortgage company requests the automatic stay be lifted or the bankruptcy case is discharged, then the mortgage company may begin the foreclosure process where they left off.
However, this does not mean a Chapter 7 cannot help you keep your home. By eliminating expensive debts, such as credit cards or high monthly auto loan payments, then you may be able to afford to pay your mortgage. After you file Chapter 7, you would want to begin discussing your options for modifying your mortgage with your lender in order to save your home.
In the alternative, if you file a Chapter 13 bankruptcy, then you do not need to have a separate agreement with the mortgage company to keep your home. The bankruptcy will stop your foreclosure, allow you to reorganize expensive debt, begin making regular payment after your case is filed, and permit you to catch up on arrearages over 3-5 years.
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Can You Leave Stuff In A Foreclosed House
Its a common misconception that you must leave the property when foreclosure starts, but in fact you can stay in the home right up to the foreclosure auction. The actual foreclosure may take several months from start to finish. No one can remove your personal property from the residence while you still own it.
Knowing When To File Bankruptcy After Foreclosure
As an attorney representing consumers facing outstanding debts and foreclosure, the primary reason that a consumer would file for bankruptcy is to protect against a deficiency judgment. Many homeowners may or may not have been informed, in discussing foreclosure, that losing their home is the end of the foreclosure road. However, this article is here to serve as confirmation that losing a home to foreclosure is not necessarily the final step, if a home is severely underwater.
Handling deficiency liability after foreclosure could be in the form of two common methods negotiating with the lender or filing a bankruptcy. Prior to considering bankruptcy consumers may want to negotiate with the lender to determine if they are able to pay a small portion owed to the lender in exchange for the lender no longer pursuing such deficiency at a later date. In considering the deal or lack thereof from the bank or collection agency handling the deficiency, if consumers are unable to work out a satisfactory deal with the lender, then the alternative typically results in pursuing the bankruptcy option. Filing for bankruptcy will either totally extinguish your liability or in the alternative reorganize your debt should you have additional collateral which may not be protected in a Chapter 7 Bankruptcy. Below is a summary of the two primary types of bankruptcies consumers utilize in an effort to get out of debt.
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The Final Steps Of Your Journey Towards Lasting Debt Relief
Getting all of your bankruptcy forms prepared and filed with the bankruptcy court is usually the most time-intensive process of a Chapter 7 bankruptcy. But that doesnât mean that your job is done. There are a few things everyone filing Chapter 7 bankruptcy has to do to successfully complete their bankruptcy case and receive a discharge. Letâs take a look at what you can expect will happen in your Chapter 7 bankruptcy.
Pay Filing Fee in Installment Payments
If you can’t pay the entire Chapter 7 bankruptcy filing fee and you don’t qualify for a fee waiver, then you can apply to pay the filing fee in installments. You can ask to make four installment payments. The entire fee is due within 120 days after filing.
If the bankruptcy court approves your application, it will grant an Order Approving Payment of Filing Fee in Installments. Your installment payment due dates will be in that order. You must pay all installments on time or your case is at risk of being dismissed.
Take Bankruptcy Course 2
You will complete a credit counseling course before filing bankruptcy. There’s a second course you must take after filing bankruptcy. It covers personal financial management and can help you take advantage of your fresh start after erasing your debts through bankruptcy.
You have to take this course after your case is filed but make sure itâs be completed within 60 days from the date of the meeting of creditors. A certificate of completion must be filed with the court.
You Can File Chapter 7 Without An Attorney
If you can afford to pay a bankruptcy attorney to help you get rid of debt, you may want to contact a bankruptcy lawyer. However, if you cannot afford the average attorney fees for a Chapter 7 bankruptcy attorney, what can you do to get out of debt?
The Bankruptcy Code does not require someone to hire an attorney to file bankruptcy. You can file for debt relief under Chapter 7 without an attorney. It may seem overwhelming if you try to file a bankruptcy case alone. However, Upsolve has created a system that helps individuals by providing a step-by-step method for filing bankruptcy without an attorney.
Are you ready to get rid of debts and get the fresh start you need to recover after a financial crisis? You could be debt-free within four to six months after filing your Chapter 7 bankruptcy petition. The cost of filing bankruptcy without an attorney is low. We can show you how to get out of debt even if you do not think you can afford to file Chapter 7.
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