AppId is over the quota
April 27, 2012 /24-7PressRelease/ -- According to MSNBC, nearly 1.9 million American properties entered the foreclosure process in 2011. This represented the least foreclosure activity since 2007, but RealtyTrac cautions that this data might not mean the housing market is improving. For example, many foreclosures were delayed in 2011 due to improper documentation or because many major banks temporarily stopped new foreclosure activity. It is anticipated that 1 million homes will have a foreclosure sale date sometime in 2012.
As a result, RealtyTrac anticipates that 2012's foreclosure rate will be higher than last year.
Utah's Bankruptcy and Foreclosure Statistics
There are many reasons a person might file for bankruptcy. For example, someone might have unaffordable credit card balances or he or she might incur thousands of dollars in unexpected medical bills. One of the more prominent reasons, however, is that many homeowners file for bankruptcy to stop foreclosure proceedings and possibly save their home.
The U.S. Bankruptcy Court reports that over 18,000 Utah residents filed for bankruptcy protection between Sept. 2010 and Sept. 2011, and over 6,000 were filed under Chapter 13.
Benefits of Chapter 13 Bankruptcy
Chapter 13 bankruptcy, unlike Chapter 7, allows a debtor to remain in possession of his or her property. There are debt limits in a Chapter 13 bankruptcy. Fortunately, very few individuals are prevented from filing a Chapter 13 because of too much debt. There are no statutory debt limits in a Chapter 7 case. A chapter 13 is defined as a wage earners plan. People who file for Chapter 13 must have a source of income which will allow for a feasible budget. Most people with a job, retirement or even temporary unemployment are able to present a feasible plan.
The Chapter 13 plan must be comply with section 1325 of the bankruptcy code and must be structured so that a debtor's disposable income -- income not needed for necessities and reasonable living expenses -- are used to repay his or her creditors over the plan's term. Section 1325 often allows for a very low percentage, or even a zero-percent payment to unsecured creditors. Once completed, the remaining unsecured debts are discharged and a debtor receives a fresh financial start.
Additionally, Chapter 13 provides immediate benefits because an "automatic stay" goes into effect the moment the petition is filed with the court. This stay prevents creditors or collectors from initiating or continuing any collections efforts, thereby stopping foreclosures and harassing phone calls. The court can grant harsh penalties to creditors who ignore the automatic stay.
Anyone facing foreclosure should consider the benefit of filing for Chapter 13 bankruptcy. Speak with an experienced bankruptcy lawyer to discuss your eligibility and potential debt relief options.
Article provided by Enderton & Mathews, LLC
Visit us at http://www.emlegal.net/
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