A Bankruptcy Law Firm Helps with Court Proceedings

Court procedures can be overwhelming, and a bankruptcy law firm can help you to navigate through the process.  The court system is based on process and procedures.  Unfortunately, it is extremely difficult for the average person to understand the nuances of what is required, the amount of paperwork that must be completed, and how it must be filed.  Once the process starts, understanding courtroom protocol and how to handle proceedings is also challenging.  Hiring an advocate that is experienced will help you to achieve the results that you are looking for.

Here are some of the proceedings you can expect if filing for bankruptcy.

·         Required credit counseling.  Every person that files is required to take a credit counseling class.  While informative, failure to complete it can get your case dismissed.

·         Hearings to lift the stay.  When you file, an automatic stay is put in place to prevent creditors from pursuing you and continuing collection action.  Creditors have the right to go before the court and ask for the stay to be lifted.

·         Meeting the trustee.  The court will appoint a trustee for your case.  This person will request and review documents from both you and your creditors.

·         Creditors meeting.  Your trustee will schedule a meeting with you and your creditors where they can both ask you questions about your financial affairs, debts, and bankruptcy papers.  This is done under oath, so it is important to obtain copies of all of your current, and recent historical, financial information. Copies should be given to the trustee ahead of time, and you should take a copy for yourself.

·         Adversary proceeding.  A creditor or the trustee can file suit against you while you have an active bankruptcy case.  The lawsuit will be assigned its own case number but remain within your bankruptcy.  As a bankruptcy law firm, we deal with adverse proceedings on a frequent basis and file them on behalf of clients as needed.

·         Proof of claim.  Each creditor that wants to be paid as part of the bankruptcy needs to file a proof of claim with the court.  Your attorney can approve or object to their claim.

·         Hearings.  The trustee and the court have the right to dismiss your case and will do so if they feel it is unmerited or the facts have been inaccurately represented. Simultaneously, they are also the ones to approve your bankruptcy case and repayment plan. 

A bankruptcy law firm will help you to file the initial paperwork correctly and to navigate through the process along the way.  There is no way to predict exactly how each one of your creditors will respond to your filing, making it important to be prepared for any eventuality.  Whether a creditor attempts to lift the stay or files an adversarial proceeding, a lawyer can help you to stay on track and get your bankruptcy case approved.  Instead of being overwhelmed by the process, you can sail through it with the help of your attorney. 

Bankruptcy Law and Foreclosures

If you are losing your home bankruptcy law may be able to save you from going through a foreclosure.  While each case is different, a Chapter 7 can delay a foreclosure for months while a Chapter 13 can enable you to stay in your home while making payments according to your repayment plan. 

Our attorneys are experts at helping families stay in their home while navigating through the bankruptcy process.  When your home is at stake, it is important to work with experienced representatives.  One simple paperwork mistake could cause the court to not approve your bankruptcy and your foreclosure to continue as scheduled.

Per bankruptcy law when you file for a Chapter 13 or a Chapter 7 the court will put an “automatic stay” in place.  This automatic stay informs creditors that they need to halt all collection activities pending the results of the court hearings.  At minimum, the stay normally lasts three to four months.  In order to have the stay lifted a creditor needs to go before the court a make a motion, something that your bankruptcy attorney can argue against.

In a Chapter 13 bankruptcy, you and your lawyer will propose a repayment plan.  In this plan, you will need to have enough money every month to cover your current mortgage payment along with whatever amount you direct towards back debt payments.  For example, if you are six months behind on your mortgage and owe $12,000 you could propose that the $12,000 is paid back over a period of five years.  The court has to approve your repayment plan and so long as they do; you will be able to stay in your home and pay your debts back over time.  This is an excellent option because it gives you the certainty of avoiding foreclosure and being able to stay in your home without worrying about harassing calls and letters from your lender.  The important thing to remember is that you must stay current on your mortgage loan and debt repayments going forward.

In a Chapter 7 bankruptcy, the automatic stay will continue while your bankruptcy is being processed.  This is a liquidation where the court will evaluate all of your assets and your debts to determine what can be sold to pay your creditors.  If you want to stay in your home, your lawyer can help to make your home a protected asset that is not liquidated.  Typically, the court will agree unless you have a large amount of equity in your home that could otherwise satisfy your debts.  At minimum, the foreclosure will be delayed as part of the process.

Life events like losing a job or incurring large medical bills can cause people to get behind, even on their home mortgage.  Fortunately these options can help families to stay in their homes longer. Bankruptcy law enables people to get back on their feet when they are swimming in debt.  Whether through a Chapter 7 liquidation or a Chapter 13 reorganization, families are able to create a plan that will help them to recover and build their financial stability again.