One of the scariest aspects of accumulating a large debt load is the potential actions that creditors may be able to take against you. It's common to wonder if bankruptcy may be a way to defend yourself against such actions. This article will explore how a bankruptcy attorney might address the issue. Getting a Stay When a petition for relief is entered by a bankruptcy attorney services provider, it is standard practice for the client's lawyer to request a court order halting all actions.
- To file for Chapter 7 bankruptcy, you'll need to pass a means test. This is used to determine if you have the means to pay your debts or if you really qualify to file for Chapter 7 bankruptcy. The Rationale of Chapter 7 and Means Tests The purpose of a means test is to make sure that those who have the means to pay off their debts do not qualify. Instead, they will be required to file for Chapter 13 bankruptcy and pay some or all of their debt owed.
- In most chapter 7 bankruptcy cases, the amount of debt owed versus the amount of available assets to pay them is so lopsided it's common for bankruptcy trustees to tell creditors not to bother filing proof the debtors owe them money cause they're unlikely to get anything. However, in the small percentage of situations where there are assets that can be used to pay creditors, it's important to verify any proof of claims that are filed and object to the ones that fall into one of these two categories.