Home » Articles » Finance / Wealth

Understanding Bankruptcy Litigation and Contested Bankruptcy Cases

Understanding Bankruptcy Litigation and Contested Bankruptcy Cases
"""The bankruptcy procedure is undoubtedly intimidating if you lack experience with it. The majority of individuals filing for bankruptcy or contemplating the option do not have this experience, as it is their first time going through this process. This is where the assistance of experienced attorneys comes into play, as you can rely on their experience and expertise in times of need.

Nonetheless, before pursuing any option, you can educate yourself and gain a deeper understanding of the fundamentals to equip yourself with the knowledge necessary to make a sensible choice. We will discuss bankruptcy litigation and contested bankruptcy cases in this section. This is a key area where confusion arises for many people, who are uncertain of the distinction between contested and uncontested cases and the nature of bankruptcy litigation.

In essence, bankruptcy litigation refers to actions and petitions initiated by you or your creditors. The majority of personal bankruptcies are resolved through an uncontested process and do not involve litigation. However, depending on your creditors and the specifics of your situation, it is possible that your case will become contested.

For instance, creditors may file motions demanding immediate distribution of liquid assets to creditors. This is a motion to switch sides. In other instances, a lender could file a motion for relief from automatic stay to effectively override the effect of the automatic stay.

In addition, a trustee could submit an objection to the payment plan if you are filing for chapter 13 bankruptcy. The objection would probably be that the proposed Chapter 13 plan is underfunded. A lender may also submit an objection to a discharge, asserting that a specific debt is not dischargeable.

In most instances, it is unnecessary to contest a bankruptcy. In the majority of contested cases, your attorney and the trustee or moneylender will be able to resolve matters amicably. This is managed through negotiation and compromise, avoiding, if possible, the need for courtroom actions such as written discovery, depositions, and hearings.

As mentioned, prior to taking any action, you should seek the counsel of experienced bankruptcy attorneys in your area. They will be able to guide you through the entire process, manage matters relating to bankruptcy litigation and contested bankruptcies if they arise, and assist you in making the right decisions at every step of the way.""

" - https://www.affordablecebu.com/
 

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"Understanding Bankruptcy Litigation and Contested Bankruptcy Cases" was written by Mary under the Finance / Wealth category. It has been read 103 times and generated 0 comments. The article was created on and updated on 31 May 2023.
Total comments : 0