Category: Bankruptcy

Many people have a limited understanding of bankruptcy law because it isn’t something that is normally dealt with very often and people don’t really talk about it if it happens to them. It is also a highly complex area of law that has a lot of finance jargon and lawyer speak in it, which makes it intimidating for many people. Many people who contemplate and go through bankruptcy proceedings are embarrassed by their situation. Don’t be! Don’t be scared, intimidated or embarrassed. Bankruptcy proceedings are often the legal remedy you need to discharge your financial burdens so that you can...

Regardless of what Chapter of bankruptcy you file for, under 11 U.S.C. Section 362, when you file for bankruptcy, the filing of a bankruptcy petition will act as an automatic stay against your creditors. A stay is an injunction that stops your creditors from seeking enforcement and collecting debts from you, the debtor. An injunction is a court order that compels your creditors to stop what they are doing and let the bankruptcy court sort out your debt situation. What Does The Stay Apply To? The stay applies debt claims that arise prior to the date of the bankruptcy filing,...

Sometimes when a debtor is facing bankruptcy, the debtor will make transfers of assets so that the asset cannot end up in the hands of creditors. The debtor will transfer the asset in one of two ways: the debtor will transfer the asset with the full intention of defrauding the creditors (actual fraud), or the debtor will transfer the asset by accepting a markedly reduced value for the asset (constructive fraud). These actions are fraudulent conveyances, and they are a form of fraud. Trustee Has Power to Recover Assets or Value of Fraudulent Conveyances When a debtor enters into bankruptcy,...

Electing to declare bankruptcy is a big decision that carries long-lasting consequences, but sometimes it is the only way to manage your overwhelming debts. One of the biggest negative impacts of declaring bankruptcy is that it will reduce your credit score, which means that you will have a more difficult time acquiring credit in the future and you will likely be lent money at a higher interest rate because you will be considered to be a higher risk investment than someone who has not declared bankruptcy. But the benefits to filing for bankruptcy might outweigh the disadvantages. Bankruptcy can allow...