"Bankruptcy law is about equity," Sheereen E. Middleton, founder of the Middleton Legal law firm in Maryland, explained in an email. "It's about balancing the rights of the consumers to receive relief and the rights of creditors to receive their payment."
A bankruptcy lawyer specializes in giving legal advice to a client about bankruptcy, prepares legal documents for the client and represents the client in court. An attorney must hold a law degree and be licensed in the state where they do business.
The only exceptions to that rule are (1) where the legislature has passed a law that allows a winning party to recover its attorney fees (like in many employment discrimination cases and consumer protection cases) and (2) where the parties have an agreement that provides that the winning party can recover its attorney fees from the loser.
If you have unpaid attorney fees, they typically get discharged (eliminated) in your bankruptcy along with many of your other debts. Because your attorney can't try to collect his or her unpaid fees after filing your case, you will normally have to pay all attorney fees upfront before your case is filed.
A party who has standing to be heard by the court in a matter to be decided in the bankruptcy case. The debtor, the U.S. trustee or bankruptcy administrator, the case trustee and creditors are parties in interest for most matters.
Article I, Section 8, of the United States Constitution authorizes Congress to enact "uniform Laws on the subject of Bankruptcies." Under this grant of authority, Congress enacted the "Bankruptcy Code" in 1978.
In a typical bankruptcy there are usually four parties: The debtor. The debtor's attorney. The trustee. The judge.
Unless the creditor already has a fraud judgment against you, a creditor must file an adversary proceeding, which is essentially a lawsuit in your bankruptcy, asking the court to determine that the debt is nondischargeable. After the complaint is filed, you will have an opportunity to respond to it.
Article I, section 8, of the Constitution authorizes Congress to establish "uniform Laws on the subject of Bankruptcies throughout the United States." As interpreted in the circuit court decision in In re Klein (1843), this clause empowers Congress to enact laws covering all aspects of the distribution of a debtor's ...
With that in mind, below are details about three main bankruptcy types.Chapter 7 Bankruptcy. Chapter 7 is also referred to as a liquidation bankruptcy because it calls for most of the debtor's assets to be sold to pay creditors. ... Chapter 13 Bankruptcy. ... Chapter 11 Bankruptcy.
Filing for bankruptcy can negatively impact your immediate financial future. Obtaining credit after filing for bankruptcy could mean increased interest rates. Obtaining credit after filing for bankruptcy might require security deposits.
Secured creditorsSecured creditors, like banks, typically get paid first in a Chapter 11 bankruptcy, followed by unsecured creditors, like bondholders and suppliers of goods and services. Stockholders are typically last in line to get paid. Not all creditors get repaid in full under a Chapter 11 bankruptcy.
confirmation. Bankruptcy judges's approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13.
Most creditors will prefer a consumer proposal over bankruptcy since they will receive more of what they're owed. But the Debtor must show that they are offering the most that they can afford to pay through the consumer proposal. They might reject the proposal if the amount offered is too low.
The following debts are not discharged if a creditor objects during the case. Creditors must prove the debt fits one of these categories: Debts from fraud. Certain debts for luxury goods or services bought 90 days before filing.
Bankruptcy Can Wipe Out Credit Card Debt and Most Other Nonpriority Unsecured Debts. Bankruptcy is very good at erasing most nonpriority unsecured debts other than school loans. For instance, you can discharge unsecured credit card debt, medical bills, overdue utility payments, personal loans, gym contracts, and more.
Yes, nonprofit legal services offer help to low-income people who either need an attorney to represent them in a bankruptcy case or are handling a...
A Chapter 7 bankruptcy can stay on your credit report for up to 10 years, while a Chapter 13 bankruptcy may remain on your credit report for up to...
Among the types of debt that can’t be discharged—meaning you’re no longer legally required to pay them—are most student loans, most taxes, child su...