Be familiar with worries that come using financial problems can put an awesome strain on your body and in the end make you sick. If you're buried under excessive debt and are desperately searching for the best way out, you may be curious if it's possible to obtain those bill collectors to avoid hounding you. This is among the most most common bankruptcy doubts we hear.
Dismissal On the Previous Bankruptcy Case
This bankruptcy code states that when a debtor filed a Chapter 7 bankruptcy, Chapter 13 bankruptcy and also Chapter 11 bankruptcy that's dismissed within the 12 months preceding the debtor's up-to-date bankruptcy filing, then the automatic stay protection will still only last for 30 days. This time limit was introduced to prevent filers from abusing this bankruptcy system by filing and closing multiple cases simply to thwart their creditors.
Nevertheless, a debtor who is limited by this 30 day rule could probably receive the full protection of the automatic stay by filing a motion to extend the stay within month of filing the chapter 13 petition. Speak with your bankruptcy attorney regarding the circumstances which led to your dismissal of your previous bankruptcy case to make sure that he/she can create a convincing case for any extension of the automatic stay.
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The automatic stay provisions with the U. S. Bankruptcy Code are an array of powerful and immediate protections for people who need to be shielded off their creditors. The stay, however, is not perfect nor permanent.
The truth is, there are limitations built in the automatic stay conditions that limit the effectiveness for people who have filed prior individual bankruptcy cases.
In the old days (before the current law came into effect in 2005) people could file case when case in rapid sequence, dismissing the ones that didn't work out and filing new ones to give up their creditors.
For most people, these "serial filings" (as they had become known) were stated in good faith and while using the best of intentions; someone would file some sort of Chapter 13 bankruptcy to cease a foreclosure, they'd miss a few post-petition payments and the mortgage company to obtain relief in the automatic stay. Then the homeowner would get a better job and also make the payments.
So rather then stay in a Chapter 13 without the main benefit of the stay, they'd dismiss their condition voluntarily and file an alternative one - and find a new automatic stay in place to protect them.
Low number of anymore. Under the 2005 amendments to the U. S. Bankruptcy Code, a case is presumptively registered in bad faith and controlled by a limitation of the automatic stay when a prior case was filed and dismissed inside past year.
If 1 previous case under some of chapters 7, 11, and 13 that the individual was a debtor was pending within the preceding 1-year period, than the automatic stay is in place for only thirty days to weeks.
If more than 1 previous case under any of chapters 7, 11, and 13 in which the individual was a debtor was pending within the preceding 1-year period, then no automatic stay is effect at all.
Bankruptcy Attorney Orange County CA