Bankruptcy Law and the States
One loophole available to serial BK filers, is that even if their Chapter 7 bankruptcy case was dismissed for abuse, and the debtor files again under a new chapter (for instance Chapter thirteen), the conventional protective stay from creditors remains.
Although it may end up being taken advantage of by individuals, partnerships along with businesses, the latter two attempt to avoid it as much as possible since a straight bankruptcy stops all business operation.
When filing chapter 7 bankruptcies there are certain debts that are unforgivable. Typically trustees will not forgive debt associated with child support, federal and state taxes, HOA fees or debt accrued through student loans. Even without these loans and debts being forgiven it is possible to catch up on them when individuals have been forgiven in other areas of debt. Another reason debt would not be forgiven is if it was accrued during criminal activity or if injury or death was caused during the use of drugs and alcohol. Any debt left off or neglected to be associated with the original filing of chapter 7 bankruptcy is also not forgivable.
A lot of people who must file for bankruptcy feel ashamed. Some of the people I’ve coached around financial freedom feel that their need to file for bankruptcy proves that they are “bad with money” or “unworthy.” Nothing could be further from the truth.
Between these two Chapters of the Bankruptcy Law, more relief-seeking people opt for the Chapter 13 option. Thus, the BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act) was passed by Congress whereby a "means test" relevant to the debt relief is created. This act is geared towards the choice of the Chapter 13, a debt repayment scheme. The means test is baffling to both relief seekers and lawyers. People who wish to file under Chapter 7 had to pass the means test.
Fortunately there are lots of options that are available to people who are going through financial difficulty, but when you have hit rock bottom, often the only answer is to go through with filing personal bankruptcy.
If you are finding yourself in need of some debt assistance, you are not alone. But you have some decisions to make. Talk to a Glendale bankruptcy lawyer. Chapter 13 might be your best option. Chapter 13 bankruptcy helps to re-organize debts that are no longer under control. Secured debts, such as mortgage payments, car payments and others fall under this category. Chapter 13 bankruptcies are for people who can pay their debts but are overwhelmed and need more time. The Glendale bankruptcy lawyer will help you to set up a payment plan that will give you the time you need to pay what you owe and make sure that you don't lose any of your important assets, such as your house.