Can I Get a New Apartment Lease During Bankruptcy?
You sure can! It may be a bit more difficult to find a place that will rent to you than it otherwise would be, but be patient. Depending on the rental agency, you may be required to pay a higher security deposit or even be required to have a co-signer. It really depends on the rental agency.
How Do I Apply For Food Stamps?
Food stamps are a wonderful benefit for those who qualify. If there are times when you are finding yourself in the predicament of deciding whether to pay the energy bill or buy groceries for the week, you should take the time to research the eligibility requirements for food stamps. If you are in North Carolina, check out the NC food stamps website for information on how to apply for food stamps. Visit this pageto find out where the Department of Social Services (“DSS”) office is located in your county.
The most difficult part of applying for food stamps is finding the time. If you can go to the website, print out the necessary forms, and fill them out beforehand, that is half the battle. You will need certain documents to verify the information you have listed on the application. These are the basic documents you will need – but verify with your local Department of Social Services to ensure you have gathered all of the documents they require:
Drivers license and social security card (or some other official document with your name and social security number on it).
Your last two months of paychecks. If your check is usually the same, sometimes just one month will be accepted, but try to provide at least two.
Proof of your daycare/after school care expenses.
Proof of utility bills in your name.
You can make the process easier on yourself by keeping your documents organized. As you fill out your application, make note of the sections and what documentation may be required for your personal answers.
Next, you must go to the DSS office. Unfortunately, there is no “good” time to go stand in line. Regardless of the day of the week or time of day, you will be waiting in line and it will be crowded. If you have kids, you may want to try to find a babysitter or bring a book to keep them occupied if you have to bring them with you. Please be patient while you are there; remember the specialists are there to help and can only work so fast! They are excellent in answering questions of all types or at least giving you a number to the department you should be contacting.
After this line, you will then move to a different area (with chairs this time) to wait for your assigned case worker to call your name for an interview. This interview is not bad and they are just going over your application, so no need to be nervous! As a side note, if you are interested in any other services such as WIC, Medicaid, help with child support, housing, or daycare, your case worker usually can steer you in the right direction.
Food stamps are now issued as an EBT card, which works exactly as a debit card. It makes paying fast and easy. And the icing on the cake is that most grocery stores have an option for EBT/Food stamps, for those who need the help but are a little embarrassed.
Will Automatic Drafts With My Bank Stop After I File Bankruptcy?
With the ever improving online banking that is available through most banks, it is possible to pay almost all of your bills without ever stepping foot outside of your home. There is no doubt filing bankruptcy can impact every situation of everyday life, but what about paying your bills? What happens if you have everything automatically drafted out of your account each month? Will that continue?
It depends. If your home mortgage or car payment is automatically drafted prior to your bankruptcy filing, then during the duration of the bankruptcy the mortgage company or vehicle creditor will likely stop automatic drafts and require you to manually pay your bill, or will only accept a mailed-in payment. When you file bankruptcy there is an “automatic stay” that goes into effect which states that your creditors cannot contact you for a payment. Many lien holders (such as your mortgage company or vehicle creditor) would rather play it “safe than sorry” and will code your account as being in active bankruptcy and will not automatically draft payments. In some cases, the creditor will not even send monthly statements. If you wish to continue receiving monthly statements, contact the creditor to let them know. They may require you to send in written permission from your bankruptcy attorney, which is common practice with creditors.
If you have your utilities automatically drafted from your bank account, then they will likely continue. If your automatic drafts are for credit cards and other debts, once you file the bankruptcy they should automatically stop since the debt is included in the bankruptcy. Those creditors should not be receiving payments at all – whether automatic draft or otherwise – due to the automatic stay.
Therefore, after you sign your petition and your bankruptcy is filed, it is imperative to make your monthly payments on your secured debts. If your payment is normally automatically drafted, do not think something is wrong in the transaction and sit and wait for it to happen. Go ahead and contact your creditor to find out the best way to make the payment (whether they will accept the payment over the phone or if you will have to mail in your payment). Discuss any confusion you may have with your attorney. Your bankruptcy is one step towards obtaining your financial freedom; you do not want to file bankruptcy and then become behind on your vehicle or mortgage due to the fact that they no longer just took their payment like they were before your bankruptcy filing.
Upside Down or Under Water on Your Home? Bankruptcy May Help!
With the decline in the housing market many people find they are “upside down” or “under water” on their home. In other words, do you owe more for the house than what it is worth? If that is your situation and you have two or more mortgages, you may find that Chapter 13 bankruptcy is an option you have never considered.
Let’s look at an example where Chapter 13 bankruptcy may help you:
You have a home with a fair market value of $150,000. Three years ago the house was worth $200,000.
You have a first mortgage on the home for $160,000 and a second mortgage or HELOC for $40,000. In other words, you owe more on the first mortgage than the house is worth.
You can easily make the first mortgage but the second mortgage is more than you can afford.
You know it will be several years before the house is valued at $200,000 again.
As a result, you are stuck making two or more mortgage payments on the home and it isn’t worth it.
You are contemplating a short-sale which leaves you without a home and a “ding” on your credit or you are considering walking away from the home and letting the mortgage company foreclose.
If this is your situation, you should consider a Chapter 13 bankruptcy. With the Chapter 13 bankruptcy, you may be able to “strip” or eliminate the second lien/mortgage. Within the bankruptcy, you are able to eliminate the lien on the house as long as you complete the Chapter 13 bankruptcy within the three to five years required by the bankruptcy laws. The number of years you must be in the bankruptcy will depend on your specific situation. Let’s use the example above to see how it might work for you.
Your first mortgage is $1,100 per month.
You have $10,000 in credit card debt, a $2,000 personal loan and $750 in medical bills.
You owe $40,000 on the second mortgage that may be eliminated in your Chapter 13 bankruptcy.
You meet with the bankruptcy attorney and determine that you qualify for a Chapter 13 bankruptcy and it appears you are eligible to strip the second lien in the bankruptcy.
Your Chapter 13 plan payments are estimated at $1,300 – $1,500 including your first mortgage and other debts including the second mortgage.
Once the bankruptcy is filed, your attorney will file a lawsuit or adversary proceeding against the mortgage company or they may be able to simply file a motion to strip the lien. Each bankruptcy court has their own requirements, so you should speak with your bankruptcy attorney to determine what must be completed in your case.
Once this process (either adversary proceeding or motion) is completed, the bankruptcy court will issue a judgment or order that voids the second lien on the house as long as you complete and receive a discharge in your Chapter 13 bankruptcy.
Once the bankruptcy is discharged and completed, three to five years after you file, you will resume payments on your first mortgage but the second mortgage and the other debts listed in your bankruptcy are eliminated and you will not be responsible for making payments on these debts in the future.
As a result, if you decide to sell your house in the future, you will only be required to pay off the first mortgage. The second mortgage is no longer a factor.
This is obviously a simplified approach, so you should seek the advice of a bankruptcy attorney to see if stripping your second or third mortgage or HELOC is an option for you. You are thinking this must be too good to be true otherwise someone would have mentioned this to you before! It really is fairly simple. This is just one way a Chapter 13 bankruptcy may assist you in keeping your home when you are upside down or under water.
