The Bankruptcy Process
A bankruptcy case generally begins by the debtor filing a petition with the bankruptcy court.
A petition may be filed by an individual, by a husband and wife together, or by a corporation or other entity. Additionally the debtor is also required to file statements listing assets, income, liabilities, and the names and addresses of all creditors and how much they are owed. The filing of the petition automatically stops, or "stays" debt collection against the debtor and the debtor's property.
As long as the stay remains in effect, creditors cannot bring or continue lawsuits, make wage garnishments, or even make telephone calls demanding payment.
Creditors receive notice from the clerk of court that the debtor has filed a bankruptcy petition.
Some bankruptcy cases are filed to allow a debtor to reorganize and establish a plan to repay creditors, while other cases involve liquidation of the debtor's property.
In other filings, disputes may give rise to litigation in a bankruptcy case over such matters as who owns certain property, how it should be used, what the property is worth, how much is owed on a debt, valuations, restructuring of debt, whether the debtor should be discharged from certain debts, or how much money should be paid to lawyers, accountants, auctioneers, or other professionals. Litigation in the bankruptcy court is conducted in much the same way that civil cases are handled in the district court. There may be discovery, pretrial proceedings, settlement efforts, and a trial.
Need a South Florida Bankruptcy Attorney? Call for a free case analysis 1-888-828-9009 or 954-320-6940
If you need the assistance of a South Florida Chapter 7 Bankruptcy Attorney, please call us at 954-320-6940 or toll free at 888-828-9009 for a free, confidential consultation and for legal guidance.