Carried away by the holiday spirit and now find yourself crash landing on a pile of debt? Do you see yourself chipping away at that debt for years without standing on solid financial ground? Well then, it's time to talk about options, including bankruptcy.
When you file for Chapter 13 Bankruptcy in Delaware, in addition to the required paperwork and petition with the court, there are also necessary documents which must be provided to the Chapter 13 trustee. Various jurisdictions, districts, and trustees, can have different policies regarding the documents which must be provided, but every debtor, regardless of the jurisdiction or trustee, is required to provide the trustee with four years of their most recently due tax returns.
Banks generally cannot take your money just because you have filed a Chapter 7 or Chapter 13 Bankruptcy. When your petition is filed an automatic stay goes into effect an all activity to collect on any debts you have must stop. This includes phone calls, letters, foreclosures and most asset seizures and garnishments. Also included within the automatic stay is any action a bank may take to collect money which they believe they are owed from you. Occasionally a bank may have the legal right to "set-off" any debts you have with the bank with any deposits you may have on account if there is a set-off agreement related to your accounts. Before acting or exercising their rights on the set-off, the bank must first get permission from the court by way of motion, for relief from the automatic stay.