Though not popular, bankruptcy is an essential component of any free market economy. The alternative to this is Debtor’s Jail. A Free market economy relies on people to become entrepreneurs. Entrepreneurs build businesses, employ people, buy products and keep the economy moving.
At times, things happen which cause businesses to fail, employees to get laid off, endure pay cuts, etc. Creditors then have the right to begin the pursuit for unpaid debts. This can result in bank levies, wage garnishments, harassing phone calls at home and at work. Bankruptcy is the means by which all of this can be stopped.
It is a complicated and at the same time straight forward process that far more often than not requires the assistance of an experienced bankruptcy attorney.
Our firm also advises creditors who feel they have a basis to pursue those in bankruptcy to ensure the debts owed are deemed non dischargeable. This is done via an adversary proceeding whereby the creditor will challenge the debtor’s right to have a certain debt wiped out.
Also, it is often the case that a debtor in bankruptcy is entering into a reorganization and the creditor needs representation to ensure that its debt is paid in full.
There are many rules in bankruptcy which prevent a great deal of creditor actions. They are in fact illegal and creditors can be sanctioned by the court for taking these actions.
In all of the above scenarios it is essential to speak to an experienced bankruptcy attorney.