Adjustments in Chapter 7 Bankruptcy Since the 2005 Bankruptcy Code
In a bankruptcy filing, everyone from the debtor to the trustee and even the creditors have their own role to play that is defined by the court. So when you decide that bankruptcy is in your future, you shed research on the Internet how to file bankruptcy sale you are fully educated on the codes and the procedures. Under the Bankruptcy code a creditor can no longer harass the debtor after they physically file bankruptcy at the court. This is because once the bankruptcy gets filed the automatic stay immediately goes into place. It usually takes between one and two weeks for the creditors to be notified by mail. In a Chapter 7 bankruptcy case the only way a creditor can have any impact on the case is if they are a lien holder on a secured piece of property like a car or a home. Under these conditions they have a right to do file a motion with the court to get relief from the automatic stay. Most judges immediately grant these to lien holders as they own the property legally. At this time, the lien holder has the right to contact the debtor and either make arrangements for payments, if a debtor wants to keep the property, or make arrangements for the surrender of the property. In most cases, usually banks and credit unions don’t want property back. So if you want to keep your property they are more than willing to reaffirm the debt outside of the bankruptcy filing and keep accepting your payments.
