The North Carolina Bankruptcy Information Blog

The holidays. A time for figgy pudding, partridges zipping around pear trees and maids milking barn animals. Those are well and good signs of happiness and all, but we’re here to dole out gifts that really sparkle under the tree, the kind that keep on giving and never need be returned. We give you, joyous reader, the 12 Days of Bankruptcy.

On the first day of bankruptcy, the bankruptcy code gives to you: an automatic stay. This gem of a benefit to bankruptcy ceases all pending lawsuits filed against you by creditors upon the approval of your petition. You will probably still have to pay any tax lawsuits or student loans that you have out there, but hey, this is only the first day!…

Amid the lingering housing crisis, full of fraudulent foreclosures and missed mortgage modifications, many disenfranchised Americans have turned to renting to keep a roof over their heads, and their heads above financial water.  Yet, even in a period where renting can be financially friendlier than owning,  conscientious and reasonable renters continue to face this tough economy head-on…in the form of foreclosure notices?

That’s right. According to a recent report by AOL’s DailyFinance, even renters are being threatened by the meteoric rise in foreclosures with lenders actually tacking eviction notices to their rental doors.  “At the start of the recession, reports of renters being blindsided by foreclosure notices were not unusual.…

In this underwater housing market, the old adage that renting a home is the same as throwing your money away can be grossly inaccurate. In many cities, from San Francisco to Dallas to New York, “price to rent” ratios make leasing property a no-brainer. But now, even smaller cities like Omaha, Oklahoma City and Kansas City appear on top ten lists of places better to rent than own.

Yet, even in a period where renting can be financially friendlier than owning, many renters continue to face this tough economy head-on, with no chance of home equity to afford them a substantial bailout.…

In the wake of the worst economic conditions since the Great Depression, millions of people are finding themselves bankruptcy bound. And with so many people forced to find relief in the protections a bankruptcy filing can provide, gone are the days of societal stigmatization and shame.

Yet, many debtors enduring tough financial times are still stuck in an old mindset that bankruptcy is a measure of last result. This often leads people just like you to wait months and even years after they should have started the bankruptcy process, often wasting endless time and money to just stay current during an unprecedented era of unemployment, rising health costs, and housing woes.…

Can your landlord evict you if you declare bankruptcy? That depends on the circumstances. If you’re not behind on your rent, your landlord may never have to know about your bankruptcy. As long as you keep paying your rent, it’s not really his business. A landlord can’t evict you just because you filed for bankruptcy.

If you are behind on your rent, however, the landlord is in a different position. If he’s already completed the proceedings for eviction, the landlord can proceed to evict you, despite the bankruptcy. Some states do not allow you to challenge this procedure. In states where you can challenge it, the proceedings are fairly onerous: you must file a paper stating that state law gives you the right to tenancy if you pay all the back rent, and immediately pay any current rent that is due.…

Constant calls. Late notices. Penalties. Late fees. Compound interest. Being buried under a mound of unaffordable debts can leave you feeling pretty helpless. And that’s because, on your own, you really are helpless: your creditors will keep calling, keep sending you threatening letters, and keep you and your family in fear. And they eventually will act on their threats, by suing you, taking your property, or even garnishing your wages. You remain at their mercy until you pay up – which, of course, you can’t afford to do!

Enter: bankruptcy’s automatic stay. This is your hammer against the harassing creditors.…