There are many for whom the word bankruptcy, though known, does
not make any sense, as they don’t exactly know what it means. The term
bankruptcy can be briefly described as a process which is legal in nature and
through which the debtor pays off the creditors, the major part of the debt
through the management and administration of the fixed and movable assets under
the watchful eyes of the exclusive courts which handle bankruptcy cases. A
person when unable to pay back the money that he owes to the debtors, generally
files for bankruptcy, in part to get some respite from the harassment of the
creditors, and also to find a solution to the dire financial predicament, and
to get another chance to start life afresh on a new financial footing. In
such cases, the debt condition is generally unmanageable by the
individual himself and therefore he needs the intervention of the law to get
out of the entire mess. Bankruptcy allows the debtors to prevent recovery of
debts for a certain period of time giving the business or the individual some
time to arrange for an alternative through which they can repay the debt.
Therefore, the process of bankruptcy litigation is definitely not
an easy one and especially daunting to the common man who won’t be having any
experience at all regarding this matter. It is also a matter of social shame to
declare one as bankrupt because money is a set standard through which the
social standing of an individual is measured. Since bankruptcy is
a first-time action for many, or shall we say most individuals,
therefore it is best to take the help of a knowledgeable and experienced
attorney, who knows all the intricacies that are involved in cases of
bankruptcy. You can rely on the skills and expertise of an
experienced attorney who can guide you in the right direction where you will be
able to come out of the bankruptcy case with your dignity intact. But before
you go on to hire a lawyer, it is better that you educate yourself a bit more
about bankruptcy and learn the basics, so that you can decide which lawyer will
best serve your purpose also check on the reputation of the lawyer to see how many
litigation cases have been successfully settled by him or her.
There
can be two types of bankruptcies, one is bankruptcy litigation, and the other
is the contested bankruptcy cases. It is better to know the difference between
the two rather than getting confused with all the legal jargon. Through knowing
the difference between the two, you will gather more knowledge about the
litigation part. In most of the cases where an individual declares bankruptcy,
the skilled lawyers make arrangements to settle the cases outside the courtroom
even if a case does become contested. Vis compromises and negotiations a
lawyer, in most cases can settle the dispute with the moneylender outside the
court in an amicable manner so that all the hassles related with
courtroom actions become unnecessary.
Now the actions and motions which have been initiated by either
your creditor or by you fall under the category of a bankruptcy litigation. In such instances, your case becomes contested in the
court of law, and it all depends on the circumstances and your
creditors. In litigations, there could be instances where a motion is
filed according to which you have to turn over your available assets for the
purpose of distribution of the same to the creditors immediately. In other
cases, with a motion for relief from automatic stay, a lender could seek to
essentially overrule the impact of the automatic
stay. Additionally, there can be situations where a trustee could
potentially file an objection to the payment plan if you're filing
for a chapter 13 bankruptcies. Likewise, with claims that a particular debt is
not dischargeable, a lender may file an objection to a discharge. Therefore as
mentioned earlier, it is best to take the advice of a litigation lawyer as to
the best course of action to be followed so that you are not permanently
drowned in the litigation case. A skilled and experienced lawyer will
continuously guide you as well as deal with your creditors so that everything
goes smoothly, and the case is taken care of in a proper manner.
