As a business owner, keeping informed about the finer points of employment law is important. If you're getting ready to hire your first employees, you need to be sure that you understand exactly what you can and cannot do. Don't risk getting yourself into legal trouble by asking the wrong question at the interview or making an off-hand comment that's considered legally unacceptable. I created this site to give you the basics of employment law expectations. I hope that the information here helps you to understand what you should and shouldn't do as you're interviewing and hiring your first staff members.
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Foreclosure and Bankruptcy: Get the Facts
Irene Robertson
No one likes the possibility of having to file bankruptcy, but in some cases it might be a good option. For instance, if you are facing foreclosure due to financial difficulties, filing for bankruptcy might help you resolve the situation, depending on the specific circumstances.
Automatic Stay
Filing for bankruptcy triggers a legal mechanism known as the automatic stay. This legal protection prevents creditors from making any attempts to collects on debts or enforce a lien during the bankruptcy process. There are some exceptions to this rule, but in many cases, an automatic stay will give you at least several months to try to improve your financial situation and deal with the foreclosure.
Lift Stay
The creditor who is behind the foreclosure on your home has the right to ask the court to lift the stay. If this happens, the legal protection you have against the foreclosure continuing during the bankruptcy process will disappear. As a general rule, however, lifting a stay is not especially common, as judges tend to support keeping the automatic stay in place in most circumstances and the burden of proof is on the creditor.
Chapter 13
You have various options when you file for bankruptcy. For most individuals, the two main options are filing under Chapter 7 or Chapter 13 of the federal bankruptcy code. If you file under Chapter 7, you will probably not be able to save your home, but the situation is different if you file under Chapter 13. This section of the bankruptcy code allows you set up a payment plan to pay off your debts and liens. A mortgage is a lien, so you might be able to pay any back mortgage payments you owe over a lengthy time period, such as five years. You must remain current on your monthly payments, however, during the repayment period.
Eligibility
Although filing for Chapter 13 is often a good way to save a home from foreclosure, you must meet certain eligibility requirements. For example, you must have steady income so that you can fund your repayment plan. Also, you must not have excessive levels of either secured or unsecured debt.
Filing for bankruptcy can help you keep your home from being taken in a foreclosure, especially if you qualify for Chapter 13. The rules and regulations surrounding bankruptcy are quite complex, however, and it's almost impossible for a lay person to negotiate this legal process themselves. For more information about bankruptcy and foreclosure, contact a qualified bankruptcy attorney like Wade Bettis, J.D., Ph.D., PC.
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