Criminal Restitution in bankruptcy

Until the recent amendments to the federal bankruptcy code, the federal guidelines favored the debtor, but those times have changed and now it is much more difficult for a debtor to completely discharge their debts. As a result, many people either try to find solutions through loopholes in the system or they deal with the ramifications that filing for bankruptcy will have on their financial future.

1. Protection from creditors - Once a debtor has applied for a Chapter 13 bankruptcy, he will be given an approval for protection from the debt collection agencies and the creditors. That means, it is illegal to contact a debtor and harass him for clearance of debts after he has been granted a Chapter 13 petition.

In order to file for bankruptcy, you're going to need to list every single debt for it to be included in your bankruptcy discharge. If you omit to list a debt in your bankruptcy, then you'll still be liable for it afterwards. Obviously, you're going to want to avoid that.

Once your Chapter 13 plan is completed, in 3-5 years depending upon the length of your play, you will get a discharge of your debts. What this means for you is that you can expect to receive a document in your mail providing that all of your debts that can be eliminated have been eliminated . A discharge means that your debts are eliminated. A discharge only eliminates debts that are dischargeable under bankruptcy law.

However, rulings by state courts on this issue may determine how long this extra right to cure lasts. Some courts have ruled that the foreclosure sale process is completed once the gavel falls at the auction. In these cases, filing bankruptcy will not extend the time to cure the default for any significant period of time. Once the auction has been conducted, the sale process is complete, and the right to cure has expired

While filing bankruptcy whether you choose chapter 7 or chapter 13, the sole aim of every debtor is to secure a successful discharge. In simple words discharged bankruptcy is permanent absolution of the involved debts.

Expect to give lots of information to the bankruptcy attorney. Find out how he or she plans to gather this information, whether you will be filling out forms or taking part in in-depth interviews. Every attorney does it differently ; there is no right or wrong way to proceed as long as the information is collected correctly. Don't forget to ask about the best way to get a hold of the attorney - by email or phone.

Now this may seem like a drastic measure to force upon the already decimated mortgage industry. However, if Chapter 13 cases could be modified, all parties will benefit in the long run. First, homeowners would be permitted to save and keep their homes. Second, the mortgage companies would be paid an amount greater than what they would lose sho7uld the property fall into foreclosure and subsequent sale. Lastly, the communities would be protected against blight and falling home prices if homeowners were allowed to restructure loans through Chapter 13 bankruptcy.