With certain exceptions, the filing of a bankruptcy petition immediately and automatically puts into place a court order of a stay of collection action applicable to all entities against actions by creditors against the person who filed for bankruptcy relief as well as his property.

New Local Form 25 Effective June 12, 2015, there is a new method to have chapter 13 payroll control orders entered before the court. The new system completely streamlines the process of getting the order entered quickly and effectively. The clerk’s office in the Northern District of Illinois came up with a new form, local+ Read More

At the end of a contentious legislative session, the Governor signed into law an important piece of legislation strengthening Alabamians’ ability to protect their house and car from being seized by creditors.  The bill (SB 327), sponsored by Sen. Cam Ward (R-Alabaster), Rep. Jim Hill (R-Moody) and passed unanimously by legislative members, was due in large part to tireless consumer advocates like Alabama Appleseed, who recognize the importance of protecting the very assets Alabamians working poor are struggling so hard to maintain.
 

At the end of a contentious legislative session, the Governor signed into law an important piece of legislation strengthening Alabamians’ ability to protect their house and car from being seized by creditors.  The bill (SB 327), sponsored by Sen. Cam … Continue reading →

Chapter 13 bankruptcy is described as "Adjustment of Debts of an Individual with Regular Income" in the Bankruptcy Code. Although it is not referred to as a "reorganization" as is chapter 11, it is actually quite similar to chapter 11.

Chapter 13 bankruptcy is described as "Adjustment of Debts of an Individual with Regular Income" in the Bankruptcy Code. Although it is not referred to as a "reorganization" as is chapter 11, it is actually quite similar to chapter 11.

In a chapter 7 or 13 bankruptcy case, a "creditors' meeting" is held three to seven weeks after the case is filed. The bankruptcy code requires this meeting to be held.  Although called a "creditors' meeting," in most cases no creditors attend.

A chapter 7 creditors' meeting is usually presided over by the chapter 7 trustee and a chapter 13 creditors' meeting by the standing chapter 13 trustee. The debtor is required to attend to creditors' meeting unless there are special circumstances to excuse attendance.

In a chapter 7 or 13 bankruptcy case, a "creditors' meeting" is held three to seven weeks after the case is filed. The bankruptcy code requires this meeting to be held.  Although called a "creditors' meeting," in most cases no creditors attend.

A chapter 7 creditors' meeting is usually presided over by the chapter 7 trustee and a chapter 13 creditors' meeting by the standing chapter 13 trustee. The debtor is required to attend to creditors' meeting unless there are special circumstances to excuse attendance.

In a much awaited decision, the United States Supreme Court  ruled in favor of Bank of America and held that "underwater" mortgages are not avoidable in a chapter 7 liquidation case. Noteably, the ruling did not involve a chapter 13 situation.