Relief from Stay in bankruptcy
When a debtor files for bankruptcy, an automatic stay goes into effect prohibiting creditors from taking any action of any kind to collect a debt. It stops all lawsuits including foreclosures and evictions. It’s against federal law for a creditor to violate the stay.
Repayment criteria in Chapter 13 bankruptcy
It is understood that the debtor’s disposable income is not static. The amount the debtor is expected to pay can change throughout your repayment period.
Student loans can be paid directly
Student loans can be paid directly, outside of bankruptcy. There are precedents. See case No. 10-37575-LMI (Bankr. S.D. Fla. 2011).
Miscellaneous and Early Payoff
Bankruptcy law assumes a reasonable lifestyle. Most people must live frugally under a Chapter 13 plan, but your disposable income is not static.
Monthly plan payment in Chapter 13 bankruptcy
Debtors must normally adhere to the provisions of the “applicable commitment period,” or the minimum duration of the repayment plan, which is determined by the debtor’s income. If you have a 60-month term, your payments will be completed after you have finished making 5 years of payments. Likewise, if your plan term is 36 months, your payments will be completed after three years.
Don’t Risk Foreclosure: Seek Out Assistance on a Short Sale
Foreclosures generally occur after homeowners struggle for months to catch up on mortgage payments. Whether it’s a medical emergency, divorce, job loss or other circumstances that cause a financial crisis, it happens too often.
How Does Bankruptcy Affect My Credit Score?
When one considers bankruptcy as an option for getting out from under the oppressive weight of debt. One of the biggest considerations is how it affects credit scores.
How Soon After Bankruptcy Can I Buy a Home?
Just because you’ve filed for bankruptcy doesn’t mean your chances of owning a house are forever in doubt. If you are otherwise able to become credit-worthy in the future, filing for chapter 7, 11, or 13 will not create a permanent roadblock for you in your home-buying ventures.