NO! Often people file bankruptcy before they are seriously delinquent on their monthly debts. If you can barely make the minimum payments required on your credit cards, or if it appears that you will not be able to make payments as they come due, it may be better for you to file bankruptcy rather than let your situation deteriorate. YES! A federal injunction (automatic stay) goes into effect immediately when a person files bankruptcy, which stops the foreclosure.

In a typical Chapter 7 bankruptcy (also known as liquidation), a trustee collects the nonexempt property of the debtor, converts the property to cash, and distributes the cash to the creditors. In contrast, Chapters 11, 12, and 13 of the Bankruptcy Code contemplate debtor rehabilitation. In a rehabilitation case, creditors look to future earnings of the debtor, not to the current property of the debtor. See similar questions...

Bankruptcy is a procedure brought in federal court. About 6 months after your case is filed, the bankruptcy court in the area where you reside will issue an Order declaring all your unsecured debts discharged. That means your unsecured creditors which you had before you filed bankruptcy will then forever be barred from contacting you ever again to collect on a debt. See similar questions...

You must reside or have a domicile, a place of business, or property in the United States; you must not have had a bankruptcy filing dismissed for cause within the last 180 days; you must have a regular income; and your total debts cannot exceed $1,446,550 (secured debts cannot exceed $1,010,650 and unsecured debt cannot exceed $336,900). See similar questions...

Most debtors file for a complete discharge under Chapter 7. Chapter 13 is the repayment chapter. Some debtors will file a Chapter 13 in an attempt to save their home, by incorporating past due payments into the 5 year repayment. But beware, most of these plans fail with the debtors converting to a Chapter 7 anyway. Unless you have a good reason or are not eligible, most debtors should file Iowa bankruptcy under Chapter 7. See similar questions...

On the date the petition is filed owe less than $269,250 in non-contingent, liquidated, unsecured debts and less than $807,750 in non-contingent, liquidated, secured debts. If you filed a prior bankruptcy petition and the prior proceeding was dismissed within the last 180 days, you may not be able to file a second petition. See similar questions...

Bankruptcy is a legal proceeding in which people who cannot pay their debts can get a fresh financial start. The right to file for bankruptcy is provided by federal law and all bankruptcy cases are handled by in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. Most people filing bankruptcy will file under either chapter 7 or chapter 13. See similar questions...

Chapter 7 is the most frequently used chapter because it involves the complete liquidation of a debtor's property, with the proceeds used to pay off the debts. However, the debtor can retain certain exempt property under Federal law and/or State law, such as tools of one's trade, limited equity in a car and house, and some personal effects. If you use Chapter 7 you may lose your home (depending on your state) but it does enable you to get out from under the burden of debt more quickly. See similar questions...

Although you are not required to state a reason or explainwhy you are filing bankruptcy, the most common reasons for consumer bankrupcy are often beyond the control of the individual debtor: See similar questions...

A chapter 7 bankruptcy is commenced by filing a petition and 30 or more pages of additional paperwork detailing your financial situation. Immediately upon filing, your creditors are prohibited from bothering you or attempting to collect on the debts. A trustee is appointed by the court to review your filing and to recommend to the court that your debts be discharged, that is, wiped out. About 4 to 5 weeks after filing, you have to appear for a trustee meeting which is mostly a formality. See similar questions...

A chapter 13 bankruptcy is normally for people with too much income to file a chapter 7 or for those who have a lot of non-dischargeable property. Chapter 13 bankruptcy is for consumers or small businesses who want to repay their creditors while protecting their real estate and personal property and avoiding harassing collections efforts. See similar questions...

Under certain circumstances a debtor may be able to modify a secured debt such as a vehicle or mobile home. The debtor may have the need for bankruptcy relief for future bills and wants to hold open the possibility for conversion or refilling [e.g. anticipated medical bills]. See similar questions...