What is the automatic stay? The automatic stay protects a debtor who files for bankruptcy from further collections efforts by creditors. Once the creditor has received notification the debtor has filed bankruptcy, all collection activity must cease including pending foreclosure, repossession, or wage garnishment. When does an automatic stay take effect? The automatic stay takes … Read more
Do you worry about how bankruptcy affects retirement assets? Some assets are exempt from the terms of bankruptcy—they cannot be sold to satisfy creditors. Your retirement funds fall into this category and are safe from seizure by creditors and the bankruptcy court. How Does Bankruptcy Affect My Pension Benefits? In 2005 Congress overhauled the bankruptcy … Read more
Businesses often turn to bankruptcy protection to avoid going out of business. When a company files under chapter 11 to reorganize, it continues to conduct business. After bankruptcy it emerges on a more viable footing. Chapter 7 requires the company to liquidate assets to pay creditors. Through the bankruptcy process, the business eliminates debt and … Read more
Making the decision to file bankruptcy should not be taken lightly. While it may seem like the perfect solution for wiping out your debt, you will face consequences. Your credit score will decrease and your bankruptcy will remain on your credit report for ten years when you file Chapter 7, and seven years when you … Read more
