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If you file bankruptcy you need to actively participate in their bankruptcy cases.  It is ill advised to file bankruptcy and not complete bankruptcy documents, attend meeting of creditors and to ignore legal papers. Chances are high the bankruptcy case will be dismissed by the court.  With the dismissal, the court's order that stops creditors from collecting money, or foreclosing on a house terminates.

Typically, must bankruptcy petitioners have nothing to be concerned because they have hired a competent professional to guide them through the process.  However, there are some folks that hurry up and rush to file their case to stop a wage garnishment or foreclosure of a house.  As a result of the rush, further paperwork needs to be completed.  If it is not completed the court will dismiss the case.

Once the case is dismissed under these circumstances, the bankruptcy code provides that no individual may be a debtor within 180 days.  (11 U.S.C. § 109(g)(2).)  Like all rules, there some courts provide exceptions if no creditor would be harmed by the refiling of the bankruptcy case, or if a creditor acted in bad faith.    

There is really no exception for the bankruptcy petition that decides he is going to not to play fairly.  For example, are those debtors that file multiple chapter 13 bankruptcy cases to avoid property foreclosures.  In re Rivera, 494 B.R. 101, 104 (B.A.P. 1st Cir. 2013), a debtor filed a second bankruptcy case right after he had his case voluntarily dismissed.  He had the case dismissed because the Court issued an order allowing the bank to continue with the foreclosure because debtor did not make monthly payments.  On the same day that he dismissed his first case, the debtor filed a new chapter 13 case to obtain a new order that prevented foreclosure.  The bank obtained an order dismissing the second bankruptcy case.

In Rivera demonstrates that a debtor cannot circumvent an order granting a creditor relief from the automatic stay by dismissing his bankruptcy case and filing a new case.  It is important for debtors to actively participate in their bankruptcy cases.  Secured creditors will be able to prevent a debtor from dismissing his case in an attempt to continually frustrate the creditor’s legitimate attempts to foreclose on its collateral.    

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There are times in which money becomes a problem for married couples looking to end their marriage, bankruptcy at some point may be something either or both spouses are considering.  Some may wonder if it is best to file for one over the other while others may want to do them both at the same […]

The automatic stay in bankruptcy is the notice that puts creditors on notice that they cannot take certain actions against you in terms of collecting the debt.  The automatic stay is created immediately upon filing of the bankruptcy case whether or not official notice has been received by that creditor or not.  The automatic stay+ Read MoreThe post What Is The Automatic Stay In Bankruptcy? appeared first on David M. Siegel.

The overhaul of the U.S. Bankruptcy laws in 2005 significantly impacted the way secured debt is handled in a bankruptcy proceeding. Those changes were to the great benefit of debtors, our clients. Secured debt is a loan where you have pledged an asset (most commonly a car or a house) as collateral. In the event you do not repay the loan, the creditor has the right to take possession of the property, sell it, and recover what money it can from the sale. The post Secured Debt in Arizona Bankruptcy appeared first on Tucson Bankruptcy Attorney.