It's safe to say that the vast majority of bankruptcy filings are smooth sailing from beginning to end. Most filers won't have a moment's trouble with making their financial fresh start. It may be helpful, however, to find out what makes a bankruptcy complicated so that you can avoid it. Read on to find out more.
Simple Bankruptcy Filings May Look Like This
A plain and simple chapter 7 bankruptcy procedure is what all filers desire, and most consumers are able to go through the below process without a single undesirable incident.
- You pay close attention to how you use your credit cards and you sell your property in the months leading up to the filing.
- You speak to an attorney and find out what needs to be done to file.
- You participate in the pre-filing credit counseling class.
- Your federal bankruptcy paperwork is filed.
- You appear at the creditor's meeting.
- You take the second bankruptcy class.
- The bankruptcy is complete.
Complicated Bankruptcy Filings Can Look Like This
As long as you pay attention to your attorney, you can expect very few unexpected events. When they do occur, the action is separate from but related to your bankruptcy case. The below legal actions have an effect on your bankruptcy case, mostly causing delays, and have their own case number.
Why Are Lawsuits Happening During Your Bankruptcy?
Here are few examples of issues that might cause a lawsuit during bankruptcy, and it's interesting to note that you may need to be the one filing suit in some cases.
- You sue to have a lien removed from real estate.
- You are sued by a creditor for the misuse of credit cards before filing.
- You sue a creditor for trying to collect a debt that was included in the bankruptcy filing.
- You are sued by the trustee because you sold or transferred property before you filed.
To help you understand what's happening, lawsuits proceed with a very dependable series of events. It all starts with the filing of the suit, also called a petition or complaint. You must respond to the complaint in writing (a job for your bankruptcy lawyer) addressing the issue. In some cases, discovery is called for but is not common in bankruptcy matters. It's important to understand that your bankruptcy cannot go forward until the complaint or lawsuit matter is resolved.
To learn more about these actions during bankruptcy, speak to an attorney such as Barrett Twomey Broom Hughes & Hoke LLP.