The number one reason a debtor takes advantage of the automatic stay stipulation in the US bankruptcy law is to stop a foreclosure. With the US economy in the state of turmoil due to the housing crisis, many homeowners are struggling to make their mortgage payments and they are facing the possibility of foreclosure.

With the filing of a chapter 7 bankruptcy or a chapter 13 bankruptcy the debtor is given an automatic stay and according to the bankruptcy law this will then stop any and all foreclosure proceedings against the debtor. This can be particularly essential in attempting to save your home if you are in a position where you may have tried a loan modification or if you are proceeding with a short sale and you need a little more time to close your real estate transaction. Sometimes you may be on the very last leg of the short sale and you may be very close to closing your escrow however you have a foreclosure sale date and if you cannot close before that date your property will be foreclosed upon.

The automatic stay in a file for bankruptcy will give you that extension that you need to either short sell your home, successfully implement a loan modification agreement with your lender or better yet if it is a chapter 13 bankruptcy, you may be able to keep your home. The automatic stay remains in effect until either your bankruptcy is discharged or a reorganization plan has been implemented.

If you are facing a foreclosure and you are thinking that the automatic stay when filing for bankruptcy may help you to retain your home, you should seek the advice of a professional licensed bankruptcy attorney. Only bankruptcy attorneys know the intricacies of the US bankruptcy law and they will be able to answer all your bankruptcy questions regarding foreclosure and other issues.

To take the first step in finding a bankruptcy lawyer, you may simply fill out a free bankruptcy case evaluation online at BankruptcyIntro.com. After completing a simple two minute bankruptcy evaluation online, you will then be connected with bankruptcy attorneys in your area that will be able to give you a free bankruptcy case review.

Consider the questions listed below. If you answer yes to three or more of the questions, you should speak with a bankruptcy lawyer right away. We can help. For a thoughtful, caring assessment of your situation and your options and for answers to your bankruptcy questions, contact our San Francisco bankruptcy law office today.

1. Do you pay over 20 percent interest on any of your debt?

2. Have you been served with legal papers, are you being sued, or are your wages already being garnished?

3. Are you receiving harassing calls from creditors?

4. Do you routinely spend more than you earn?

5. Is it difficult for you to see a way of getting out of debt?

6. Can you only afford the minimum payment required on your credit cards?

7. Do you panic when faced with an unexpected expense, such as a car repair?

8. Do you skip payments on some bills in order to pay other bills, transfer balances, or use cash advances on one credit card?

9. Have you experienced a change of employment such as a job change, loss of employment or loss of overtime that impacts your ability to keep the status quo?

10. Do you find yourself arguing with your spouse about money, or find that you are afraid to talk to your spouse about money at all?

11. Are you thinking about filing for bankruptcy?

12. Do you buy necessary items, such as food and clothing, on credit?

13. Do you make regular payments without your balances going down?

We build relationships with our clients. Our practice is centered on providing personalized service and representation in an atmosphere and culture of care.

When good people have serious financial problems, they owe it to themselves and their families to consider bankruptcy. There is no reason not to take advantage of our free office consultation and personalized evaluation from an honest and caring bankruptcy lawyer. Visit our website at www.sfdebthelp.com. Call us at (415) 963-4004 or email us at email@jclawgroup.com.

Take the time to list your expenses on a spread sheet or piece of paper. Make a budget that prioritizes your expenses, food, utilities, and mortgage first. Then if you have a car payment that should come next, once you have all your important expenses listed, begin to list your debt.

The purpose of this is to determine how much income you have available for debt repayment, and whether you can make progress with repaying debt. If your current income does not leave room for debt repayment or leaves you with getting behind on your credit cards it is time to consider your options.

Negotiate with Creditors – This will be your first step, not all creditors will negotiate with you, and many will not negotiate with you till you are two or more months behind, you will not know till you ask so do this first. Many creditors are willing to settle for the principle with a small amount of interest, simply to recoup the money they lent you. Often creditors will settle for 2-4% interest on a 2-5 year contract. Many credit card companies will not tell you about this till you are already delinquent so depending on where your finances are at, this may or may not do you any good.

Credit Counseling services – Debt repayment programs are not the same as credit counseling services and should not be mistaken for them. Often Debt repayment programs are nothing more than a scam, they entice you to sign a contract promising to reduce your payments when in fact many creditors will not work with them. Instead research carefully, check with the Better Business Bureau to find a Counseling agency that will work with you to create a payment plan you can afford. You can also go to www.usdoj.gov/ust which keeps a state by state list of US Trustee approved credit counseling agencies that you can contact.

Doing Nothing – This may seem like an unlikely alternative but more and more people are caught between a rock and a hard place and are choosing this option. Many cannot afford the costs of the new bankruptcy laws which have tripled the cost of a bankruptcy, require counseling at your expense, and can have a lengthy waiting period. If you are in a place of choosing between paying for food, heat, or housing and paying credit cards, it is pretty obvious what you should choose.

While nobody is telling you to irresponsibly choose not to pay the bills you incurred, we live in tough times and if you have little or no income coming in, you take care of basic necessities first.

If you live simply and are not extravagant, then your chances of being sued are very small, and what the creditors are able to take from you is limited, they cannot take the roof over your head, things you need to hold a job, clothing or any of the basic necessities of life. This will affect your credit rating but no more so than a bankruptcy, and if bankruptcy is not an option because of costs then this is an option you may have to consider.

Creditors and collection agencies are very limited in what they do in terms of harassment, so be sure to read up on your laws and let them know you know your rights.

Nobody wants to be in the position of not being able to pay their bills, with so much at stake such as our reputation and credit rating most of us would rather pay our bills then let them get behind. In the end though it is not the end of the world and you do have alternatives no matter where you are at in life. Knowing your alternatives and rights is the key to dealing with this situation, and certainly if you can pay, pay what you can but be sure to feed your family and keep your home warm, then and only then should you worry about the creditors.

These feelings of hopelessness are burdensome, but some weight can be lifted from your shoulders. There are possibilities of having credit cards in the future, therefore being able to build up your credit score, slowly, until it is once again in the high numbers and a secured spot on the chart.

But how is it possible to keep your credit cards once you have filed for bankruptcy? Don’t you have to list them under your debts?

Yes, you do have to list the existing balance on your credit card as a debt when you file for bankruptcy, therefore making that credit card discontinued for further use. Filing bankruptcy gets rid of all your debt, and the balance that exists on your current credit card is categorized as such, therefore giving you no choice.

However, if you have a credit card that does not have a current balance on it, you are allowed to keep that credit card because you are not indebted to that specific credit card company. You do not have to tell that specific credit card company that you have filed for bankruptcy, but they may find out some other way, like by looking at your credit report.

In that case, they may change a few things in the agreement they have with you because of your increased risk of making late payments or making no payments at all. Many credit card companies will keep your line of credit open because they want your business, but they do have the right to change things like your credit limits and interest rates because of something like bankruptcy.

Despite the fact that there is no balance on that credit card, there may be some companies that will discontinue the line of credit they allowed you anyway. Bankruptcy is a red flag to them, and because you are at higher risk, they may invalidate your credit card. However, most companies will not because they still want you to keep an open line of credit with their company.

It is not difficult to get new credit cards after you file for bankruptcy. The fact that you could not pay off your debt may determine a higher interest rate and a lower credit limit, but you still can get a credit card. But if you think about it, the whole point of filing for bankruptcy was to get out of debt and stay out, wasn’t it? Still, it is through more loans and credit cards that you rebuild your credit score after bankruptcy.

1. It is much faster then the other Chapters. With a little effort on your side, you can have the entire process over in next four to six months.

2. It is also simpler to file. No frequent visits to court are required.

3. There are no after payments. Once your bankruptcy is discharged that is it, you are debt free. (Under the 2005 bankruptcy law, not all debts can be discharged anymore so consult with your attorney before filling).

On the other hand, Chapter 7 has a catch, the court will decide whether you are allowed to file for it or not. One of the main reasons why you can be denied to file for Chapter 7 is your income. If it happens to be sufficient to payoff some of your debts (after your allowed living expenses have been counted in) then you might be forced to file under Chapter 13 bankruptcy law.

How to check if you can apply?

First thing you need to do is to calculate your average earnings in the last 6 months and compare it with average income for the state you live in. You will be allowed to file under Chapter 7 if your income happens to be lover or the same as the median income of the state you live in.

In case that your average income is higher than that, and you still want to apply for Chapter 7 bankruptcy you will have to go through one more test called the Means Test.

So what is a means test?

It is a test based on the results calculated for your allowed living expenses.

How to calculate my living expenses and what can I include in it?

It is actually quite easy to calculate it. Take all your income from one average month and deduct the following allowed expenses:

1) Utility bills, transport (gas), food, clothing. (Make sure to use IRS amounts for these or the court will not take it in to account).

2) Your secured monthly payments like child support, car loan, mortgage and tax.

After you finish with the calculation and your average disposable income per month is lover then $100, you have passed the means test and you stand a fair chance of being approved to file for bankruptcy under Chapter 7.

If on the other hand your disposable income happens to be more than that (figure most often mentioned is $166, but it can vary), you will most likely have to file under Chapter 13 of the bankruptcy law. That is unless you can provide evidence that there are some special considerations to be taken in your account.

For any figures between $100 and $166, it is best to consult with your attorney. Make sure to find an attorney that specialize in bankruptcy and credit repair and has the solid reputation.

The one thing to remember about filing for bankruptcy is that it will show up on your credit reports for up to the next ten years. This feature on your credit report will make it difficult for you to borrow money during that time period but odds are that your credit is already in bad shape if you feel like bankruptcy is your only option. Therefore, the bankruptcy court can help you obtain a fresh start.

If you need to know how to file bankruptcy, these steps will give you a basic idea on how to do so.

1) After you have explored all other options, you should hire a lawyer. Some people decide to file without a lawyer, but it is highly recommended that you have one.

2) Explore what type of bankruptcy is right for your situation. The two most common methods for the individual filing are Chapter 7 and bankruptcy Chapter 13.  Chapter 7 is liquidation and Chapter 13 is a reorganization of your finances. Laws have changed recently and they require that you take a means test before you file for Chapter 7 bankruptcy; it will determine whether you are eligible for that type of bankruptcy.

3) Determine how much filing bankruptcy will cost. Your attorney cannot be your creditor for a Chapter 7 case so his fees need to be paid in full beforehand. Once your lawyer files the case, the automatic stay goes into effect and your creditors no longer have the right to hassle you for their money. All interactions from that point on must go through the attorneys. 

Your lawyer will help you with the rest of the steps because each case is unique. One note you should take under consideration is that you should not use your credit cards if you plan on filing for bankruptcy. If you create debt knowing that you will not be able to repay it, it will not be absolved in your bankruptcy case.

There are a number of options available to either shed your debt completely or modify the terms of your payments to make it possible for you to pay back your balances. Each has it’s own unique advantages and disadvantages. This article focuses on perhaps the most extreme approach, credit card bankruptcy.

In a bankruptcy, specifically a chapter 7 bankruptcy, all your unsecured debt is wiped clean, allowing you to have a fresh start. However you will pay a price. A credit card bankruptcy will be on your financial record for at least 7 years. This means whenever you want to borrow money during that time, rest assured you will be paying a higher interest rate. In addition, employers, landlords, and insurance companies to name a few, take a peek at your credit history to base decisions upon.

Contrary to reports, filing bankruptcy has not become harder since the laws have changed. You will be required to pass a means test. This test is simply a way for the court to determine if you are eligible to file for bankruptcy. The test is a comparison of your debts versus your income and assets.

Once you file for credit card bankruptcy, you will be under a protected status, meaning your creditors cannot call and harass you, and during that time they can not bring any type of suit against you in court. This includes your mortgage company. However, mortgage companies can go to court and have this stay lifted.

Because of the damage to your credit, and the social stigma attached to filing bankruptcy, this is not your best option if you can help it. But if you are stuck with no way out, credit card bankruptcy is a viable option.

Debt settlement is a way for you to potentially save thousands of dollars, and avoid bankruptcy.

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Don’t file bankruptcy if you are liable because it is the last option. It is always better to hire a financial firm and settle the liability but don’t file bankruptcy.

In the current market and economic situation, the people who are facing huge liabilities are worried because they are not able to pay back the amount on time. Everyday, the interest rate is increasing and it is becoming very difficult to come out of the situation. The people are advised to reduce the liability but don’t file bankruptcy at all. Even if you run out of money and have nil balance in your account, you have to pay back the liability that you owe to the lender. However, there are ways to settle the liability claims if a person is deeply drowned in the burden of arrears.

The financial companies and the banks provide monetary help to the people who apply for the liability relief. The new rules and regulations of the financial relief network is that the people should request for the settlement of liability in an organised manner. Their message to the people is don’t file bankruptcy unless every door has been closed for you. There are certain formalities and paperwork to be completed before approaching the company for the liability settlement. There are many other options to reduce the liability of an individual.

If you don’t file bankruptcy, then your assets will remain safe. You should also be confident about the new loan that the financial firms provide while settling the claims. Avoiding too many expenses as well as maintaining the limit of plastic money will help you to stay away from huge liabilities. The financial firms, banks and the privatised money lenders advise the people to settle the claims rather than filing a case of nil balance. If a person is able to get monetary help from the legal financial companies, then he can easily clear off the dues and arrears.

You can also approach the firms and ask for discounts on the loan against them. However, the settlement company will help you to get the best reduction on the liabilities that you have. If you totally run out of cash and if there is no alternative way left, then you should file liquidation and show the proof through the bank statements. In this way, you can avoid huge liabilities and stay relieved.

If you have over $10k in unsecured debt it would be wise to consider debt settlement. Creditors of unsecured debt are very concerned about collecting on their delinquent accounts and you can take advantage of this. Consumers and small business have never had a better opportunity to eliminate debt through a settlement process. To locate legitimate debt settlement companies in your state check out the following link:

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First, let’s touch on the new counseling requirements. According to the new law, you must complete credit counseling with an agency approved by the United States Trustee’s office before you can file for bankruptcy under either Chapter 13 or Chapter 7. Because this counseling is to decide whether you need to file for bankruptcy, or if an informal payment plan would be a better alternative for your situation. The counseling is mandatory for everyone, even for people who know for certain that a repayment plan is not what they want.

However, you are required only to join in the counseling; you do not have to go with any repayment plans the agency recommends.

But if you are given a plan, you will have to present the plan to the court with a certificate showing that you attended the counseling before you can file for bankruptcy. Once your bankruptcy case is over, you will have to attend another counseling session focused on learning personal financial management skills to complete your bankruptcy and erase your debts.

Another major change that comes with the new law effects many people who want to file chapter 7 bankruptcy. Under the old law, most people filing could choose between Chapter 7 and Chapter 13, and most people chose Chapter 7. Because of the new law, many filers with higher incomes will be prohibited from using Chapter 7.

The first step in determining whether or not you can file for Chapter 7 is to compare your current monthly income to the median income for a family of your size in the state you live in. In the context of the new law, your current monthly income is not your income at the time you file, but your average income over the last six months before you file.

Once you have determined your income, measure it against the median income in your state. If your income is equal to or less than the median, you can file for Chapter 7. If it is more than the median, you must pass a requirement of the new law called the means test. The means test requires you to determine your amount of “disposable income” by subtracting different variables from your current monthly income.

If your current monthly income after subtracting these amounts is under $100, you pass the means test, and will be able to file for Chapter 7. If you income is more than $166.66, you will be prohibited from using Chapter 7. Those in the middle of these incomes will be able to file for chapter 7, but will be required to still pay a percentage of their debt.

Yet another important change caused by the new law is that lawyers may be harder to find, and possibly more expensive. The new law has added many complex requirements to the process of filing for bankruptcy that will make it more time consuming for lawyers to represent their clients in bankruptcy cases. The end result being that attorney fees for representation will increase. Also, the amount of time that lawyers must put into the new regulations has increased and it is likely that it may be harder to find a lawyer that solely specialized in bankruptcy in the future. Many experts are predicting that the stress of these new requirements may drive some bankruptcy lawyers out of the field completely.

Now that you know many of the changes the new bankruptcy laws hold for your situation, be aware and file with care.

Bankruptcy is sometimes hard to imagine happening to you. When this does occur you have some options that you can take. These are in general chapter 7 and chapter 13 bankruptcy claims. For your creditors to stop contacting you it is essential that you understand what happens when you file bankruptcy claims.

When any person has financial difficulties they have different options that are open to them. To file bankruptcy claims simply means that you are in massive amounts of financial problems and you have no way of paying off all of your debts.

By going through with this legal course of action you are stating that you would like to give the finances that you owe, back to their legal owners. As you have some trouble with paying the original amount you are letting the courts and your lawyer decide the best route to solve this problem.

There are 2 options that are well known. The effects when you file bankruptcy with both of these is that your public record states that you are a bad risk for investment purposes. You should file bankruptcy only when you have understood all that is entailed in bankruptcy.

In the chapter 7 bankruptcy claim you agree to liquidate all of your assets and turn them over to a court appointed bankruptcy trustee. This person will start the process of converting your assets into cash once you file bankruptcy chapter 7.

Once the cash amount has been found the trustee will distribute them amongst your creditors. This step will wipeout your entire debts excepting for certain non-dischargeable debts. You will however need to discuss with your lawyer the various aspects to file bankruptcy for chapter 7.

Instead of looking at the chapter 7 bankruptcy option you can file bankruptcy for chapter 13 instead. With the chapter 13 bankruptcy option you agree to pay your debts during a 5 year period.

The plan that you will follow to implement this payment scheme must be approved by the courts. Once they are sure that you have the necessary financial ability to start your repayment the automatic stay order comes into effect only when you file bankruptcy for chapter 13.

During this period of time your creditors must discuss any financial matters including the handling of re-payment via your lawyer. You will need to make sure that you are discharging your debts according to the plan that was drawn up.

When you file bankruptcy it is because you can’t see any option that is open to you. For this reason you should see how your lawyer can help you out of this bind and place you back on a clear financial path.