Foreclosure is something that can become a reality when individuals are facing tough financial situations. When foreclosure becomes a reality, this can be a scary situation to face. Individuals may find themselves in a tight situation due to their finances. They may be unsure of where they will live and if their family will be safe. Foreclosure of one’s home can be a scary reality to face. It can also be emotional since a house can become a home. It has sentimental value. It could be a place that has been in your family for generations, somewhere you lived your whole life or a place where you intended to start over with a family of your own. If you are facing this harsh reality, you may be able to stop it by filing for Chapter 13 bankruptcy.
What does Chapter 13 bankruptcy entail?
Before filing for Chapter 13 bankruptcy, there are prerequisites to complete. To qualify for this bankruptcy process, you should receive credit counseling within 180 days before filing. If a previous petition was dismissed within the 180 days, you cannot file again. Once you file for bankruptcy, you should file documents that include a list of liabilities, assets and property, a statement of financial affairs, a list of executory contracts and unexpired leases, proof of credit counseling and any plan developed to handle the matter, income payments within 60 days prior to filing, monthly net income and any indication in a rise of income or expenditures and interests the debtor has in state or federally-qualified education or tuition accounts. Chapter 13 bankruptcy is useful for individuals to prevent foreclosure and improve financially.
When does the automatic stay go into effect?
The automatic stay is a part of the bankruptcy process that can be beneficial for those that are facing finance troubles. This tool can protect debtors from the harassment of creditors. Once all the paperwork is filed for the bankruptcy process, the automatic stay can go into effect. Through this tool, it will bar any creditors from contacting the debtor in regards to money they owe. With this in effect, debtors can focus on other aspects of their bankruptcy. They do not have to deal with creditors in that forum. Instead, they can work with their attorney to resolve their issues. This can help to limit stress that they have about the situation. Without the added stress of creditors, individuals can have space to themselves to breathe and make further decisions.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.