File Bankruptcy Petition Uncovered

Apr 1st, 2014 | By | Category: Debt

Most of my clients do not retain me at their first consultation. They have tons of questions. They are unsure about whether or not to file. Even if they do want to file, it may take time for them to come forward with the attorney and court fees necessary for filing bankruptcy.

What that means is that it could take some time between when they meet with me for the very first time and when we file their bankruptcy petition. In the meantime, their creditors still wish to be paid. If they have stopped paying their credit cards, they have probably already started getting phone calls from insistent debt collectors. When I was representing creditors, I cannot tell you how often someone would tell me that they were considering filing bankruptcy or had talked to a bankruptcy lawyer. Until they actually filed bankruptcy, I had to pursue my client’s claim against them. The lawsuit was going to move on until I got the opinion of their bankruptcy filing. Once they filed, I had to put an end to the lawsuit or face penalties.

But wait!

Bankruptcy can be filed in two ways. Either your creditor will file a bankruptcy petition against you in an attempt to recoup a part of what they’re owed. This is known as involuntary or more commonly you’ll file for bankruptcy yourself, which is referred to as voluntary. When you file for bankruptcy you’ll need to bridge in a petition containing your financial information.

The City Council of Harrisburg, Pennsylvania’s financially troubled capital, filed for bankruptcy on Wednesday, a surprise move that was immediately opposed by the mayor and Gov. Tom Corbett, who argued that the filing was illegal under state law. The filing — which listed debts in excess of $400 million, largely associated with a failed trash incinerator — pitched the city into political confusion. A spokesman for Mayor Linda Thompson initially said the filing had not been made. Ms. Thompson later held …

If you are answering creditors’ phone calls, to bear in mind that you’re under no requirement to do so. Unless you are prepared to put in place a repayment plan, I’m not sure there is any real reason to come and talk to them. Not talking to them will not affect your legal rights, and unless you plan on paying them back, talking to them will do about as much good as banging your head on the wall. They’ll use whatever weapon (legal and illegal) they have in their arsenal to take you to make a payment. They do not mind if it means that you will not be in a position to feed your family or keep a roof over your head.

If you want them to stop calling and writing you, and you cannot file bankruptcy right away, there’s only one way to do that. You must put your request in writing under the Fair Debt Collection Practices Act (FDCPA). Otherwise, they’ll continue to call and write you. Of course that meant that the next time you hear from them may be when you are served with a lawsuit.

Only paying the debt or filing bankruptcy will get them to stop their lawsuit. Once your attorney files your bankruptcy petition, a protective order is put in place. All those creditors calling you have to stop. All creditor lawsuits have to stop. If they have started to garnish your paycheck, that must be brought to an end as well.

If you are struggling to make ends meet and have questions about whether bankruptcy is your best option, consider meeting with a bankruptcy attorney. There is too much misinformation about bankruptcy for you to depend on second information from non-lawyer friends and family or online forums. A bankruptcy attorney can give you straightforward information about how bankruptcy will affect you and answer all of your questions. Only then should make the decision to file bankruptcy.


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