I recently met with a potential client who was struggling with meeting their financial obligations, and after analyzing their financial situation and needs, I recommended that they should file bankruptcy. After all the analysis we discussed, the person I was speaking with said, “I know what you are recommending, but I don’t feel like I really understand what bankruptcy is.” This particular individual had the courage to ask the question that many probably have but feel to sheepish to ask. And I think it is a good question. We have all heard of bankruptcy, but what is it, really? To that end, I am going to attempt to explain bankruptcy in its most basic form in a way that is clear and spoken in plain English. Most bankruptcy filings are voluntary, and for that reason I am not attempting to explain an involuntary bankruptcy.Bankruptcy is a legal proceeding that, upon filing, invokes certain legal protections from creditors for personal debts (i.e. credit cards, mortgages, personal loans, judgments, landlords, car loans, etc.). The protections that are afforded to a debtor (the person filing bankruptcy) are spelled out in the bankruptcy code. And, while there are many benefits to filing bankruptcy which can be fully explained by a bankruptcy lawyer, the most notable benefits are the automatic stay, which stops nearly any kind of debt collection in its tracks, and discharge, which is what makes most types of debts go away after you file bankruptcy. The very existence of the Bankruptcy Code is authorized by the United States Constitution and is a creation of federal law. As such, every bankruptcy case is filed in federal court. Specifically, bankruptcy cases are filed in the federal bankruptcy court, which is a specialized court, with judges, clerks, and court officers who are specifically trained and experienced in handling bankruptcy matters. To boil down bankruptcy into a simple (and admittedly overly simplistic) explanation, in most instances, bankruptcy is like a legal reset button. If you need to hit the reset button in your own life, contact our office today for a free, no obligation, and totally confidential consultation. by Adam Mack, JD
Categories
Tags
- 341 Meeting
- 341(a) Meeting
- 529 plans
- 785
- ABLE accounts
- administrative oversight
- asset control
- asset exemption
- asset management
- asset protection
- asset valuation
- Attorney
- Attorneys
- automatic stay
- Bankruptcy
- bankruptcy advice
- Bankruptcy Appeals
- Bankruptcy Assets
- bankruptcy court
- Bankruptcy Court Topeka
- bankruptcy discharge
- bankruptcy eligibility
- bankruptcy estate
- bankruptcy exemptions
- bankruptcy fee
- bankruptcy filing
- bankruptcy filing in Kansas
- bankruptcy forms
- bankruptcy in Kansas
- bankruptcy law
- Bankruptcy Law Topeka
- Bankruptcy Meeting
- bankruptcy petition
- Bankruptcy Property
- Bankruptcy Property Rules
- Bankruptcy Reform
- bankruptcy requirements
- bankruptcy rules
- Bankruptcy Trustee
- Bar
- beneficiary rights
- Chapter 13
- Chapter 13 Bankruptcy
- Chapter 13 trustee
- Chapter 7
- chapter 7 abuse
- Chapter 7 bankruptcy
- Chapter 7 trustee
- class action settlements
- Clients
- Consumer
- consumer debts
- court location
- court orders
- Court System
- credit counseling
- creditors meeting
- Debt
- debt defense
- Debtor Rights
- discharge eligibility
- education savings
- EITC
- ERISA
- Estate
- estate administration
- estate planning
- estate planning lawyer
- estate tax
- estate tax return
- estate taxes
- executor duties
- fiduciary responsibilities
- File
- Filing
- filing bankruptcy
- Financial
- Financial Legal Advice
- financial management course
- financial planning
- Financial Recovery
- Financial Relief
- Firm
- garnishee
- garnishment procedure
- Individuals
- initial family meeting
- judgment debtor
- Jurisdiction
- K.S.A. § 60-734
- Kansas
- Kansas bankruptcy
- Kansas Bankruptcy Law
- Kansas estate law
- Kansas law
- Kansas probate
- Law
- Lawyer
- Lawyers
- Legal
- Legal advice
- Legal Appeals Process
- Legal Guidance
- legal malpractice bankruptcy
- legal strategies
- liquidation bankruptcy
- means test
- Meeting of Creditors
- no-asset bankruptcy
- Options
- Pawned property
- pension protection
- personal injury settlements
- personal representative
- Practice
- probate
- probate administration
- probate duties
- Process
- Professional
- Property Acquisition in Bankruptcy
- Property exclusion
- Property Exemptions
- protection from creditors
- Provide
- Questions
- Relief
- Services
- tax rebate
- tax refund
- Time
- Topeka
- Topeka Bankruptcy Law
- Topeka Legal Advice
- trust administration
- trust assets
- Trustee Abandonment
- trustee duties
- United States Trustee
- unsecured creditors
- venue rules
- wage garnishment
- Will vs trust
Sign Up for Updates
Thank you for signing up!
Tags
Related News
Disclaimer
These articles are for general informational use and do not constitute legal advice. Since laws change over time, it’s possible some articles are out of date and for that reason, we make no representation that the articles are fully accurate. For actual, up-to-date legal advice (including a free consultation), please contact us!