You can file for Bankruptcy but it won't stop......

Dear Readers:  

Many of you know that under 11 USC, Section 362, which is commonly referred to as the "Automatic Stay" filing a bankruptcy can stop a foreclosure sale.  However, it may not work in some instances.  If you have previously filed a bankruptcy and/or the court issued an order lifting the stay its possible that the stay will only apply for 30 days or not apply at all.  

Your home is far too valuable to you to make a mistake.  Don't trust your residence with a real estate broker.  While there are many good ones out there, far too many of them make the mistake of filing a bankruptcy on your behalf unbeknownst to you so they can have more time to complete a short sale.  This often times is a huge mistake and will impact you negatively.  

Make sure the professionals you are using to help you save your home know this information.  I strongly recommend that you retain the services of a licensed Bankruptcy Attorney to make sure of what will apply to your situation.  

But what you might not know is that filing a bankruptcy won't stop any of the following (NOTE:  This is not an all inclusive list):

1.  Family law issues such as paternity lawsuits, requests for orders for domestic support and visitation and the dissolution of marriage (but only to extent it is not seeking to divide assets);  domestic support orders.

2.  Driver's license restrictions & Wage garnishments for domestic support obligations.  However, once you file a chapter 13, it is possible to negotiate with these agencies for a payment plan in bankruptcy to get the driver's license reinstated and stop the wage garnishments.

3.  The interception of a tax refund.  So note that if you are going to file for bankruptcy, make sure you already got your refund!

4.  IRS or Franchise Tax Board Audit, issuance of a notice of tax deficiency or a demand for tax returns;

5.   COMMERCIAL LEASES:  If your lease is expired, a bankruptcy won't stop eviction proceedings.

6.  As I said above, a FORECLOSURE if there is an order entered in Prior Two Years giving relief from stay.

7.   EVICTION JUDGMENT.  Note this is an important one.  If you have lost your house in foreclosure, you can stay the case if there has not been entered a judgment.  But if  Judgment has been entered, the Bankruptcy will not stay the Sheriff's lock out.  There are some exceptions where some local Sheriff's departments won't do a lock out in the face of a bankruptcy.

Call me if you need me!  Have a great weekend!