What To Do When You Are Stuck In A Bankruptcy Case
by Abdul Aziz Mondal Legal Published on: 24 September 2022 Last Updated on: 30 September 2022
The modern world is competitive, and the business market is very volatile. Among the best companies, there have been uncertainties and restlessness. After the pandemic, there was a big lag seen in the economic stability of the countries.
In the middle of a competitive market, you should play wisely and smartly. In the dealing of business, there are collaborations, and other trading deals happen so often.
The matter is common, but the problem occurs when a company or an individual goes bankrupt and files a case against you.
Bankruptcy is a critical case where the court supports the person who has got bankrupt. When you owe money to someone, and you are against the case, the whole situation can be seen as weird for you.
But the real factor is that the law is the same for all, and in difficult situations, the law stands for the poor to create a balance. So, it’s not the time to panic just because you did not get your money back from someone or a company. Rather it’s time to sort out your problem with the ways of the law.
Hire An Efficient Attorney
When you are stuck in a bankruptcy case, the first thing you need to do is to hire an efficient bankruptcy lawyer. Try to find bankruptcy lawyers in dalton ga, who are capable of handling any kind of bankruptcy case and also have a good reputation and experience.
When you search for bankruptcy lawyers in dalton ga, make sure that you have managed to prepare a shortlist where you only include the experienced lawyers’ names. Well, you might know the reputation of an attorney from the case histories and other people, but you will get to be in a one-on-one conversation to understand if the lawyer is perfect for your case or not.
See if the lawyer is paying enough attention to your current conditions and if you are convinced with that and your lawyer is not asking for money in advance, then you can go for the particular lawyer.
Hiring bankruptcy lawyers in dalton ga is always wise for you in such difficult situations. It does not matter if you are a creditor or not; without a lawyer, you will not be able to handle the bankruptcy case.
Know The Types Of Bankruptcy
Once you are in a bankruptcy case, make sure that you know all the instances of a bankruptcy situation. Try & understand that there is not one type of bankruptcy case; at least three.
1. Chapter 7
In a Chapter 7 bankruptcy case, a company decides to fully close their operation. Sometimes the debt becomes so overwhelming, and the business becomes so tired that the entrepreneur decides not to continue the business.
On the other hand, a court trustee takes over the responsibility of selling the company to clear the debt of the company.
2. Chapter 11
In a Chapter 11 bankruptcy case, court approval is needed. In such cases, the debtor decides to continue their company operations but plans to pay off the debt over time.
Here, you, as a creditor, will get the chance to vote, and also the court will take the final decision depending on various circumstances.
3. Chapter 13
When someone is not eligible for chapter 7 bankruptcy, that person will be included in a Chapter 13 case. This is applicable to people who have higher incomes and can pay their debt between 3 to 5 years of the plan.
The court trustee will plan for the repayment, and any type of unsecured debt will be removed.
Ways To Mitigate Your Tension
It’s time to mitigate your tension with the case of a creditor. Your attorney will always be with you to help with the below steps.
1. File A Proof Of Claim
When someone or a company is not able to pay your money, they will file a case of bankruptcy, and the court will send you the notice. After you get the notice, the court will ask you to show proof of claim in the particular court.
Directions on how to complete it and the claim document will be adjusted together by your lawyer to send it to the court within a particular time.
2. Retention Of Title Clause
If you are facing a huge loss, you can include a retention clause in the court. According to this, you will be able to get back the service or product that you have delivered to the debtor but have not received the payment yet.
Be A Wise Creditor And Take Smart Steps
Protect your financial interest and make sure that you have taken out the possible advantage from the case. Often the creditor gets very little return to actually what they owe, and thus it’s better to take proper steps and hire a suitable and efficient attorney.
Your smart and advanced steps can only save you from bankruptcy.
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