Bankruptcy Filing Part I

 

Most of the Bankruptcy is on the front end, that is collecting documents before the case is filed. This process can take time. The process takes time due to Pre Trial Client Consultations, Strategizing for the Client for the case, and documents that are needed that need to go in the court file for Petition. There is restructuring and maneuvering of client assets all done before the case hits the Court Docket.

There will always be resistance from the creditors, banks, and courts, the bankruptcy Adminstor will also give resistance but there are ways to handle the resistance and one has to persist and never lose cool.

In Bankruptcy Court there are always challenges with Automatic Stay Violations, Tax Issues, Lein violations and etc. Every bankruptcy case will have problems and issues and that is the reason it goes into Court. All legal processes take time and so will Bankruptcy proceedings, there is no hard and fast rule that you file your documentation and the court will give the Judgement the next day in many cases if the case does not meet the fitness test for Bankruptcy it can be dismissed in the preliminary stages.

Filing for Bankruptcy is a stressful period for many people as their feeling of worthiness is tied to their financial status and if that status is on the brink then stress is only natural. There will be hardships as there were will restrictions on the client's cash flow. Temporarily the creditors will be put on stop but they can still sue the debtor.

It will take 7 years for a person to recover from bankruptcy and from Chapter 13 bankruptcy it will take 10 years. There will be properties that would qualify as except properties when one files for bankruptcy and even cash will be except if it comes under that category.

Collection is a costly affair for any lender, the entity makes more money if the debtor keeps making their payments for that reason alone they may give the debtor the grace period to get on track. Partial payments are better than no payments and the creditor has the right to sue the entity that makes no payments. 

A dire straight situation can happen to anyone, maybe the entity fell ill, or is going through a bad divorce, or simply lost his or her job reasons can be many. Best to do your thorough research before filing for bankruptcy and be prepared to handle the stress that comes with the proceedings.

Abraham Lincoln, Donald Trump, Walt Disney, Mike Tyson, MC Hammer, Nicholas Cage, Meatloaf, Burt Reynolds, Dave Ramsey, and many more made a comeback after filing for bankruptcy so can any other individual. One has to keep in mind it is a process and one will have to go through the system and once gone after that there may be light.