What Bankruptcy Can Do For You Part 2

      Delay eviction  If you are being evicted from your home, the automatic stay may delay the eviction for a few weeks.  If, however, the landlord already has a judgment of possession against you when you file, the automatic stay will not delay the eviction and the landlord can proceed just as if you hadn’t filed for bankruptcy.  Also, if the landlord alleges that you’ve been endangering the property or using a controlled substance on the property, the automatic stay won’t protect you.

6.     Stop collection of public benefit overpayments  If you receive public benefits (unemployment, social security, etc.) and were overpaid, the agency is normally entitled to collect the overpayment out of your future checks.  The automatic stay in bankruptcy will prevent this from happening.

7.     Get rid of certain types of liens  A lien is a creditor’s right to take some or all of your property.  For example, the lender who provides auto financing will keep a lien on your car until all payments are made.  If you do not make your payments, the lien allows the lender to repossess your car.  Liens survive bankruptcy unless certain rights are invoked during the bankruptcy process.  

      Cram down secured debt  To “cram down” debt means to reduce the amount of the loan to the current value of the property.  For example, if you have a car loan with a balance of $8,000, but the car is worth only $5,000, you can propose a plan to repay $5,000 to the creditor and have the remaining $3,000 debt discharged in the bankruptcy.  Note, however, that you can’t cram down a car debt if you bought the car within 30 months prior to filing for bankruptcy.  You cannot cram down other types of secured debt if you purchased the property within one year of filing for bankruptcy.

      Get your drivers license back if it has been suspended because you didn't pay court-ordered damages for a driving accident  unless you were driving under the influence of drugs or alcohol.

For more information about Bankruptcy in Holland Michigan, click here.