When I meet with a prospective client I want to make sure as my role as the Indian Creek bankruptcy lawyer that they have the income to pay for a Chapter 13 bankruptcy case. If I meet with someone and I see that they have very little in terms of disposable income I know that the odds of a successful Chapter 13 bankruptcy case are going to be slim.
The best Chapter 13 bankruptcy cases are those where someone either lost a job or became ill and that is what caused them to fall behind on their mortgage. By the time they come to see me they are either gainfully employed once again or whatever illness or medical issue they had in the past has now been resolved and they are able to make money once again.
For those clients I honestly believe that the odds of success are good. If the homeowner can stay employed and if the homeowner can make the regular mortgage payment once again by budgeting properly then the individual bankruptcy case should go off without a hitch.
Now there are times when a Chapter 13 bankruptcy case is moving along and all of the sudden there’s some sort of roadblock that throws it into ill-repair. For example, someone might lose their job or they might take a decrease in pay while the Chapter 13 is pending. In those cases the Chapter 13 trustee or the mortgage company is going to bring a motion to dismiss the case. If the debtor is not able to cure the default then the court will likely grant the motion to dismiss. If that were to happen the debtor has the ability to re-file another Illinois bankruptcy case under the bankruptcy code.
When you re-file a Chapter 13 bankruptcy case you have to pay another filing fee, you must submit to credit counseling, you must provide two months’ worth of paycheck stubs and you must provide four years’ worth of Federal tax returns to your attorney.
In addition to re-filing the case you must bring a motion within 30 days of re-filing to extend the automatic stay. The automatic stay is a blanket protection that lets creditors know that a case has been filed and creditors are prohibited from attempting to collect on a debt.
In a re-filed Chapter 13 bankruptcy case where the prior case was dismissed within the previous year the automatic stay protection only lasts for 30 days and then expires. To prevent this expiration of the automatic stay your attorney can bring a motion to extend the automatic stay. This motion has to be filed with the Clerk of the U.S. Bankruptcy Court, set out on notice before a judge at a particular date, time and room number. Your local bankruptcy lawyer can assist with the motion.