Chicago Bankruptcy Lawyer

Recent Posts in Automatic Stay Category

  • Motion to Extend the Automatic Stay

    One of the most important protections bankruptcy affords - and one could make the argument that it is the most important - is the protection afforded debtors in the form of the automatic stay. Pursuant to 11 U.S.C. 362, the filing of a bankruptcy case automatically operates as a stay to almost all debt collection proceedings. These include (all listed in 362(a)(1)), lawsuits or other actions ...
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  • Chicago Foreclosures Spike in October 2013

    According to a story published in the Chicago Tribune on November 13, 2013, Chicago-area foreclosure filings rose nearly 30% in October 2013. This number, while lower than this past summer and the past few years of extreme foreclosure rates, signals that the economic recovery is far from complete. A spike in foreclosure filings as winter comes indicates that for some, household income has gone ...
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  • What is the Automatic Stay?

    Once a bankruptcy case is filed, a bankruptcy restraining order is automatically issued. This restraining order, which functions much like a typical restraining order, is formally known as the automatic stay. This automatic stay prevents creditors from proceeding in collection actions against you. What this means is that creditors can't call you at home, at work, or on your cell phone; they can't ...
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  • Missing Mortgage or Association Payments During Bankruptcy

    The filing of a Chapter 13 has an interesting effect. It consolidates and reorganizes all of your personal debt into one payment to the trustee each month. The analysis that goes into this deals with all of your expenses, income, assets, and debt to determine the payment. The payment can go up if it includes payment for certain secured debt in the plan, like a car of mortgage. This can help ...
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  • Association Dues and Bankruptcy

    Often, when people purchase a home or condo, there is an association incorporated into the community where the new home is. This could be a homeowner's association or condo association, but the results are nearly always the same: you must pay them a separate bill each month. This bill, usually added as a standard rider to the sales contract on your home, could pay for any range of things. Failure ...
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  • Car Repossession and Bankruptcy

    A common preceding cause of a bankruptcy filing is a car repossession. On a basic level, a car loan is a secured debt. This means that unlike failure to make your credit card payments, which can result in lawsuits and judgments down the road, failure to make a car payment gives the holder of that secured interest the right to repossess the vehicle in order to pay off the debt. Bankruptcy offers a ...
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  • Extending or Imposing the Automatic Stay

    Pursuant to 11 USC 362, the filing of a bankruptcy petition serves to automatically stay certain activities against the debtor. These activities, outlined in 362(a), include any judicial action that can be taken against the debtor in terms of debt collection, the enforcement of a pre-petition judgment, or any action to collect property of the bankruptcy estate or things along those lines. The stay ...
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  • Surrendering Property in Bankruptcy

    A common misconception about bankruptcy, especially Chapter 7 bankruptcy, is that you lose all of your property upon filing. This isn't true; we've discussed in this space how bankruptcy exemptions and a lack of equity in property can protect your property and allow you to keep most, if not all, of it throughout your bankruptcy. On the flip side of that, though, Chapter 7 can be a convenient ...
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  • The Automatic Stay and Repetitive Filings

    Normally, the bankruptcy automatic stay goes into effect immediately upon filing the bankruptcy case. This automatic stay prevents most attempts to collect on debt and also is effective in stopping garnishments, frozen bank accounts, and harassing creditors. Problems arise, though, if a person has repetitive bankruptcy filings. After the BAPCPA reforms to the Bankruptcy Code in 2005, the automatic ...
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  • Common Bankruptcy Questions, Part IV

    Continuing our discussion on common bankruptcy questions, we begin with the age-old question of whether you will ever get credit again. This answer is, of course, always asked in every bankruptcy consultation and subsequent case. The answer is yes. Just by filing the bankruptcy, you are freeing yourself of debt that had been dragging your credit score down to begin with. Because you remove that ...
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  • Statutes of Limitation and Bankruptcy

    One of the reasons that people file for bankruptcy is because of attempts by creditors to collect on their debt. One way that these creditors can attempt to collect on that debt is by eventually filing a lawsuit in state court to secure a judgment for the debt amount, if the debt collection proceeds to that point. When the bankruptcy is filed, an automatic stay is put into effect, stopping any ...
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  • Secured Creditors and the Automatic Stay

    We discussed yesterday the basic concepts of the automatic stay in a bankruptcy case. The automatic stay stops all debt collection efforts from the onset of the filing of the bankruptcy case. This also includes any efforts by a secured creditor, such as your mortgage or car company, to collect on their debt with you. In certain situations, including if the debtor is late on payments to their ...
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  • How Long Will My Chapter 7 Bankruptcy Take?

    One of the more common questions asked by clients is how long their Chapter 7 Bankruptcy case will take. As a general overview, a Chapter 7 bankruptcy lasts about 120 days from the date the petition is filed in United States Bankruptcy Court until the date a discharge is issued in the case. The more important question in this regard, however, is when clients will begin to see relief in the filing ...
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