There are several legal laws in effect regarding how a debtor files for bankruptcy proceedings. According to one from Oldham and Smith bankruptcy attorneys, a debtor should become familiar with these laws before filing for bankruptcy. The laws regarding bankruptcy are different in each state, so it is important to know and understand them. Also, many people that file bankruptcy petitions fail to fully understand the legal rules governing bankruptcy, and thus miss deadlines in their claims and petitions. This article aims to provide a simple and easy explanation of bankruptcy law.
The first part of the procedure for bankruptcy proceedings is the filing of the petition. The petition must be filed with the appropriate county courthouse. Filing means informing the courts that you are not able to repay your debts. The court will then issue an order for you to repay your debts. In some cases, the bankruptcy petition is referred to as a petition for discharge. This simply means that the bankruptcy court has dismissed the case; however, it is still open for re-filing at a later date.
How bankruptcy proceedings are commenced is also important to understand. Once the petition for bankruptcy is filed, the case will be filed in the bankruptcy court. The bankruptcy court will hear both your creditors’ arguments. It will then render its decision concerning the bankruptcy petition. You may have a chance to speak with a bankruptcy lawyer before the court makes its decision.
How bankruptcy proceedings occur is also important to understand if you are a debtor. After the bankruptcy court renders its decision on the bankruptcy petition, you will then be notified by the bankruptcy court of its findings. You are then given a period of time to come up with a plan on how you can pay off your debts. If you do not comply, you may find yourself going back to court, as discussed above.
How bankruptcy proceedings occur can also be an important topic to discuss with your bankruptcy lawyer. Once the bankruptcy court renders its decision and you have made a plan to repay your debts, the bankruptcy court will enter its findings of fact. These findings of fact, if different from the bankruptcy petition, can determine whether you meet the requirements for filing bankruptcy. If you do not meet the minimum requirements, then you could be advised by the bankruptcy court to file for chapter 13 bankruptcy instead. Chapter 13 bankruptcy allows you to liquidate your assets and pay off your debts in a shorter period of time. Chapter 13 bankruptcy is considered by many people to be easier to follow.
How bankruptcy proceedings occur can be quite complex for those who do not have experience with bankruptcy proceedings. However, the more information you gain about how bankruptcy works, the more likely you will be able to keep your debt under control, even after filing for bankruptcy. There are a number of good books on the subject of bankruptcy that provide an in-depth look at what it is, and how it affects your financial life. The most important thing to remember when thinking about how bankruptcy proceedings may affect you is that the bankruptcy court’s actions are designed only to provide you with a fresh start. They cannot continue to re-order your finances, take property that you do not already own, or interfere with your freedom of speech and other economic activities.