Forbearance in bankruptcy means that a person has
entered into a deferred payment plan with a lender prior to filing a
bankruptcy petition. Forbearance agreements allow borrowers to skip loan
payments for a specific period of time. Lenders cannot commence with
repossession or collection while the plan is effective unless borrowers
default on the terms.
Chapter 13 payments, one of two things will occur. Creditors can seek bankruptcy dismissal or the judge can transfer the bankruptcy into Chapter 7.
Known
as liquidation bankruptcy, Chapter 7 requires property used as
collateral to secure loans be returned or sold to satisfy the note. This
means borrowers will lose their home, car, and anything else they have
financed.
When bankruptcy petitions are dismissed debtors fail out
of bankruptcy and lose court protection. Creditors can take action to
claim collateral property or borrowed funds. This can result in
repossession, wage garnishment, or creditor judgments.
There is a
high probability for foreclosure when debtors enter into forbearance in
bankruptcy and default on court ordered payments. This will also be a
double-whammy to credit reports.
Not only will the bankruptcy be
reflected for 7 to 10 years, debtors will also carry the dark credit
cloud of foreclosure. This combo will be a total knock-out for credit
scores and take years to rebound.
While bankruptcy can cause
extreme credit damage there are times when it must be done. It’s always
best to obtain legal counsel, but even more so when forbearance in
bankruptcy is involved.
http://bankruptcy-auctions.mysurefinance.com/211/bankruptcy-auctions-considerations-of-forbearance-in-bankruptcy/
Ankit Rawal
Bankruptcy Fraud is A Fast Track to Court
Many Americans are struggling with overwhelming credit debt in
today’s economy. Those who have suffered severe circumstances find
themselves without the means to pay for their debt. Job loss, divorce
and endless medical bills leave hard-working people stuck in difficult
times. Bankruptcy is one option that may help people alleviate their
debt, protect their assets from creditors and regain control over their
finances. Although bankruptcy laws are fairly lenient when it comes to
protecting the debtor’s assets, many people abuse the system and commit
bankruptcy fraud in efforts to protect their assets.
Hiding one’s assets and making false statements on a bankruptcy petition account for the majority of bankruptcy fraud. The two main forms of bankruptcy fraud are:
: is a type of bankruptcy fraud where an individual withholds or incorrectly lists all assets on the bankruptcy petition. Creditors can only attempt to seize assets that are made known and, by withholding the existence of assets, the debtor may be able to prevent a creditor from liquidating their assets. This type of bankruptcy is common among businesses, where assets may be hidden or dispersed in efforts to protect them from seizure.
: is a type of bankruptcy fraud in which individuals file a bankruptcy claim in more than one state. The same assets are listed on the multiple bankruptcy petitions and individuals may attempt to conceal some assets by withholding their information on the claim forms. Some individuals also use fake name and social security numbers in attempt to fraudulently file claims.
Bankruptcy fraud can take many forms, all of which can result in serious consequences for the offender and have a devastating impact on our tax system. The negative impact of bankruptcy fraud affects how the public views bankruptcy laws and the reputation of honest individuals looking for debt assistance through a difficult time.
Bankruptcy fraud isn’t limited to a devious criminal with a checkered past, anyone is capable of committing fraud. A recent example is former MLB player Lenny Dysktra, who was indicted in early May for bankruptcy fraud. Dykstra is accused of stealing and ruining 0,000 worth of marble countertops, appliances, and fixtures in his million home in Los Angeles, before it could be liquidated to repay creditors. If convicted, Lenny Dysktra could serve up to 80 years in prison.
Punishment for Offenders
Bankruptcy fraud is not resolved without a price, as the crime is considered a criminal offense. It is considered a felony and is prosecuted to the fullest extent of the law. In efforts to protect the current leniency that is provided by the State and Federal bankruptcy laws, the court system is out to make an example of bankruptcy fraud offenders.
The bankruptcy petition filed by the offender will be denied and debt dismissal or reorganization requests will not be granted. Additionally, offenders will be required to forfeit all of their assets and will be denied opportunity to claim liquidation exemptions. Convicted offenders can also face jail time and are usually required to pay restitution fees up to hundreds of thousands of dollars.
For more information visit us at http://leebankruptcy.com/
http://ezinearticles.com/?Bankruptcy-Fraud-Is-A-Fast-Track-to-Court&id=6286969
Hiding one’s assets and making false statements on a bankruptcy petition account for the majority of bankruptcy fraud. The two main forms of bankruptcy fraud are:
: is a type of bankruptcy fraud where an individual withholds or incorrectly lists all assets on the bankruptcy petition. Creditors can only attempt to seize assets that are made known and, by withholding the existence of assets, the debtor may be able to prevent a creditor from liquidating their assets. This type of bankruptcy is common among businesses, where assets may be hidden or dispersed in efforts to protect them from seizure.
: is a type of bankruptcy fraud in which individuals file a bankruptcy claim in more than one state. The same assets are listed on the multiple bankruptcy petitions and individuals may attempt to conceal some assets by withholding their information on the claim forms. Some individuals also use fake name and social security numbers in attempt to fraudulently file claims.
Bankruptcy fraud can take many forms, all of which can result in serious consequences for the offender and have a devastating impact on our tax system. The negative impact of bankruptcy fraud affects how the public views bankruptcy laws and the reputation of honest individuals looking for debt assistance through a difficult time.
Bankruptcy fraud isn’t limited to a devious criminal with a checkered past, anyone is capable of committing fraud. A recent example is former MLB player Lenny Dysktra, who was indicted in early May for bankruptcy fraud. Dykstra is accused of stealing and ruining 0,000 worth of marble countertops, appliances, and fixtures in his million home in Los Angeles, before it could be liquidated to repay creditors. If convicted, Lenny Dysktra could serve up to 80 years in prison.
Punishment for Offenders
Bankruptcy fraud is not resolved without a price, as the crime is considered a criminal offense. It is considered a felony and is prosecuted to the fullest extent of the law. In efforts to protect the current leniency that is provided by the State and Federal bankruptcy laws, the court system is out to make an example of bankruptcy fraud offenders.
The bankruptcy petition filed by the offender will be denied and debt dismissal or reorganization requests will not be granted. Additionally, offenders will be required to forfeit all of their assets and will be denied opportunity to claim liquidation exemptions. Convicted offenders can also face jail time and are usually required to pay restitution fees up to hundreds of thousands of dollars.
For more information visit us at http://leebankruptcy.com/
Christopher understands that financial hardships can affect honest,
hard-working people. Growing up in a very blue collar family and rural
area of Indiana , money didn’t always come easy for his parents. The
struggles his family faced in his childhood made a significant
impression on his business philosophy today. As a Fort Worth bankruptcy attorney this practice has given me the opportunity to directly impact the lives of many people.
For more information visit us at http://leebankruptcy.com/
For more information visit us at http://leebankruptcy.com/
http://ezinearticles.com/?Bankruptcy-Fraud-Is-A-Fast-Track-to-Court&id=6286969
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