People in Jackson likely are willing to do all that they can in order to avoid financial struggles. Yet no one may be immune from having issues with debt. Oftentimes, those issues can become so overwhelming that bankruptcy protection is the only viable path for one to be able to reasonably return to enjoying a healthy financial situation. The automatic stay that accompanies a bankruptcy filing stops any further collection efforts that one’s creditors might be planning. In addition, it may also halt foreclosure proceedings that a bank or lender may have initiated on one’s home.
Still, there may be times when the sale of a home as part of a bankruptcy filing may be mandated. This is what a rap artist Lil Kim hopes to avoid. Her home first went into foreclosure back in 2010, yet the bidding for its sale did not commence until April of this year (required minimum bids began at only $100). However, the artist is hoping to the stop the sale and retain the property. She filed for a Chapter 13 bankruptcy earlier this year, but is now pleading with the judge overseeing her case to allow her to convert to a Chapter 11 filing. This would allow her to reorganize her debts and offer money to her mortgage company in order to prevent foreclosure. A decision regarding her request has yet to be rendered.
Bankruptcy law does indeed allow filers to exempt their interest in certain assets, allowing them to keep their homes and other valuable properties. The laws governing these exemptions, however, can be complex. Thus, one may be better served allowing an experienced bankruptcy attorney to help manage his or her case.
