Bankruptcy Stops Your Creditors by Virtue of: The Automatic Stay

What is the "automatic stay"?

The automatic stay is one of the most important aspects of the bankruptcy process. Once you file a bankruptcy petition, the automatic stay stops all collection efforts and proceedings against you, all harassment, lawsuits, and any foreclosure proceedings. It gives you breathing room to deal with your financial affairs without interference from your creditors.

The automatic stay is the bankruptcy equivalent of a temporary injunction against virtually all creditor activity that might have the effect of advancing the creditor's interest at the expense of the debtor.

An automatic stay restrains creditors from sending collection letters, calling the debtor regarding collection, suing on the debt, garnishing wages, repossessing property, foreclosing on home mortgages, or any other activity to collect a debt. The stay continues until the bankruptcy case concludes.

Most importantly, the automatic stay provides the debtor immediate calm amidst the storm of financial difficulties.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

Bankruptcy Stops Your Creditors by Virtue of: The Automatic Stay

What is the "automatic stay"?

The automatic stay is one of the most important aspects of the bankruptcy process. Once you file a bankruptcy petition, the automatic stay stops all collection efforts and proceedings against you, all harassment, lawsuits, and any foreclosure proceedings. It gives you breathing room to deal with your financial affairs without interference from your creditors.

The automatic stay is the bankruptcy equivalent of a temporary injunction against virtually all creditor activity that might have the effect of advancing the creditor's interest at the expense of the debtor.

An automatic stay restrains creditors from sending collection letters, calling the debtor regarding collection, suing on the debt, garnishing wages, repossessing property, foreclosing on home mortgages, or any other activity to collect a debt. The stay continues until the bankruptcy case concludes.

Most importantly, the automatic stay provides the debtor immediate calm amidst the storm of financial difficulties.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

What is Chapter 13 Bankruptcy?

A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

Generally, chapter 13 is preferred by debtors who have a valuable asset, such as a home, that is not completely covered by exemptions and that they wish to keep. Since the debtors plan will require regular monthly or biweekly payments, Chapter 13 is usually only appropriate for an individual debtor who has a regular source of income.

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time.

Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

What is Chapter 13 Bankruptcy?

A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

Generally, chapter 13 is preferred by debtors who have a valuable asset, such as a home, that is not completely covered by exemptions and that they wish to keep. Since the debtors plan will require regular monthly or biweekly payments, Chapter 13 is usually only appropriate for an individual debtor who has a regular source of income.

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time.

Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy wipes out ("discharges") your debts. Chapter 7 is the bankruptcy provision most frequently used by individuals. It involves the complete liquidation of a debtor's property to pay creditors and wipes out the remaining debts, giving the debtor what's known as a "fresh start".  The whole Chapter 7 bankruptcy process takes about three to four months, costs $299 in filing and administrative fees, and commonly requires only one trip to the courthouse.

Are You Eligible for Chapter 7?

Visit the following website to determine if you are eligible to file Chapter 7 Bankruptcy.http://www.legalconsumer.com/bankruptcy/nolo/

The bankruptcy law determines your income by looking at your household income during the six full calendar months before your bankruptcy filing. The following is brief summary of who is eligible to file Chapter & Bankruptcy in Pennsylvania:

1 # of people in Household: $3,700 per month or $44,396 annually

2 # of people in Household: $4,464 per month or $53,572 annually

3 # of people in Household: $5,626 per month or $67,516 annually

4 # of people in Household: $6,466 per month or $77,590 annually

5 # of people in Household: $7,041 per month or $84,490 annually

You may have noticed already that changing the number of persons in the household dramatically affects the median income figure.  For your information, all children, dependents and anyone that lives with you that you take care of can be included in the household number.

Chapter 7 Bankruptcy wipes out ("discharges") your debts. Chapter 7 is the bankruptcy provision most frequently used by individuals. It involves the complete liquidation of a debtor's property to pay creditors and wipes out the remaining debts, giving the debtor what's known as a "fresh start".  The whole Chapter 7 bankruptcy process takes about three to four months, costs $299 in filing and administrative fees, and commonly requires only one trip to the courthouse.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard, Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy wipes out ("discharges") your debts. Chapter 7 is the bankruptcy provision most frequently used by individuals. It involves the complete liquidation of a debtor's property to pay creditors and wipes out the remaining debts, giving the debtor what's known as a "fresh start".  The whole Chapter 7 bankruptcy process takes about three to four months, costs $299 in filing and administrative fees, and commonly requires only one trip to the courthouse.

Are You Eligible for Chapter 7?

Visit the following website to determine if you are eligible to file Chapter 7 Bankruptcy.http://www.legalconsumer.com/bankruptcy/nolo/

The bankruptcy law determines your income by looking at your household income during the six full calendar months before your bankruptcy filing. The following is brief summary of who is eligible to file Chapter & Bankruptcy in Pennsylvania:

1 # of people in Household: $3,700 per month or $44,396 annually

2 # of people in Household: $4,464 per month or $53,572 annually

3 # of people in Household: $5,626 per month or $67,516 annually

4 # of people in Household: $6,466 per month or $77,590 annually

5 # of people in Household: $7,041 per month or $84,490 annually

You may have noticed already that changing the number of persons in the household dramatically affects the median income figure.  For your information, all children, dependents and anyone that lives with you that you take care of can be included in the household number.

Chapter 7 Bankruptcy wipes out ("discharges") your debts. Chapter 7 is the bankruptcy provision most frequently used by individuals. It involves the complete liquidation of a debtor's property to pay creditors and wipes out the remaining debts, giving the debtor what's known as a "fresh start".  The whole Chapter 7 bankruptcy process takes about three to four months, costs $299 in filing and administrative fees, and commonly requires only one trip to the courthouse.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard, Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

What is Bankruptcy?

Bankruptcy is intended to give people a fresh start - free of debt.  The bankruptcy laws provide an opportunity for a fresh start to those individuals whose financial difficulties have left them unable to pay their bills and have put them at risk of losing their house, cars, or other property.

Why do people file bankruptcy in Pennsylvania?  In my experience as a bankruptcy lawyer, these are some common scenarios:

• You are trying to keep debts current but are borrowing money from one card to pay another (robbing Peter to pay Paul).
• You are trying to keep debts current by using your savings but can see the day when your savings will run out (don't wait until it does).
• You have defaulted on credit card debt and are dealing with debt collectors who are not willing to help you and are rude and harassing.
• You have defaulted on credit card debt and are being sued or already have civil judgments against you.
• You have looked into credit counseling and found that they demanded a payment you could not afford.
• You have lost a job or had a sudden reduction in income.
• You have incurred substantial medical debt because of illness or an accident.
• You have fallen behind on house or car payments and are facing foreclosure or repossession.
• You had a business that failed or is failing.

People often feel embarrassed and feel like there is no hope when they find themselves in situations like these.  They may know that bankruptcy exists but are scared by it.  Bankruptcy is not something to take lightly, but it is not as scary as you might think.

You owe it to yourself to at least know your options.

Dunne Law Offices, P.C.
1500 John F Kennedy Boulevard, Suite 200
Philadelphia, PA 19102
(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com