Filing Bankruptcy to Stop Creditor Harassment

There are many different reasons to pursue bankruptcy. Getting a fresh financial start and being able to move ahead into the future in control of your finances is obviously the most important. In the meantime though, one of the clear benefits of filing for bankruptcy is that you can use it as a key tool to stop creditor harassment. Continue reading to learn more about how this works, why it’s so beneficial, and how you can capitalize on it to achieve your financial goals.

That’s not just a potential outcome, it’s actually mandated by Federal law. How exactly is this made possible? Well, the Automatic Stay kicks in as soon as you file for bankruptcy. Your benefits from this include immediately stopping many of the actions being taken against you, including creditor harassment.

This also includes collection agencies trying to repossess your property, and lawsuits being filed against you. Therefore, the best way to stop creditor harassment is actually to file bankruptcy and let that Automatic Stay provide you with the outcome you’ve been seeking.

What qualifies as creditor harassment though? There’s a range of specific rules in play here. But generally, creditor harassment includes adding to your debt or misrepresenting how much is owed, calling repetitively, calling you at work, or calling you outside of reasonable weekday hours, or disclosing the debt to third parties.

While it’s difficult to have these rules enforced, once you file for bankruptcy, creditors generally know they have to back off. If not, further action can be taken by yourself and your legal team. Therefore, once you file for bankruptcy, you can at least get your plate cleared of excessive phone calls, letters and threats, as you pursue your financial resolutions. It certainly provides some peace of mind and reduces the stress and hassle that you’re facing during this difficult time.

Before filing for bankruptcy, be sure to consult with an experienced attorney who will be able to guide you through the process. While stopping creditor harassment is a huge bonus to filing bankruptcy, there are still a range of ups and downs to carefully consider.

There are also different chapters of bankruptcy which provide you with different types of financial remedies, and different levels of property retention as well. It’s not always the right solution, so your personal circumstances and goals certainly come into play, but the Automatic Stay’s capabilities to instantly stop creditor harassment is a major plus.

Understanding Bankruptcy Litigation and Contested Bankruptcy Cases

The bankruptcy process is certainly daunting when you don’t have any experience with it. And for the majority of individuals filing bankruptcy or considering the option, of course they don’t have that experience, because it’s the first time they’re going through this. That’s where the help of experienced attorneys comes into play, as they have the experience and expertise you can rely upon in your time of need.

Still, before pursuing any option, you can educate yourself and learn more of the basics to arm yourself with the knowledge you need to make a sound decision. Here, we’ll be discussing bankruptcy litigation, and contested bankruptcy cases. This is a key area where confusion sets in for many individuals, who are unsure of the difference between contested and uncontested cases, and what exactly bankruptcy litigation represents.

Bankruptcy litigation essentially refers to actions and motions which are initiated either by you or your creditors. The majority of personal bankruptcies do not go through litigation and are seen to conclusion in an uncontested process. However, it certainly is possible that your case could become contested depending on your creditors and the specific circumstances you’re facing.

For instance, motions could be filed that you turn over available liquid funds for distribution to creditors immediately. This is a motion for turnover. In other cases, a lender could seek to essentially overrule the impact of the automatic stay, with a motion for relief from automatic stay.

Additionally, if you’re filing for a chapter 13 bankruptcy, a trustee could potentially file an objection to the payment plan. The objection would likely be that the Chapter 13 plan set forth is underfunded. Similarly, a lender may file an objection to a discharge, with claims that a particular debt is not dischargeable.

In most cases, there is no need to contest a bankruptcy. If a case does become contested, the majority of those can be handled fairly smoothly between your attorney and the trustee or moneylender. This is handled via negotiation and compromise, hopefully forgoing the need to actually pursue courtroom actions of written discovery, depositions, and hearings.

As mentioned, be sure to turn to the assistance of experienced bankruptcy attorneys in your local area before taking any action. They’ll be able to guide you through the entire process, handle matters relating to bankruptcy litigation and contested bankruptcies should they occur, and help you make the correct decisions at each step of the process.

What Happens To A Director of a Limited Company After Liquidation?

If your business is undergoing liquidation it can be an incredibly scary time. All of a sudden, the future of your business is out of your hands and there are strangers thumbing through your finances. To some, it feels like a relief, whilst to others it feels like crushing failure. It’s a scenario that’s never helped by the countless fictions that surround liquidation. So, in this guide, we’ll dispel some of those myths and tell you what really happens to a director when their limited company goes through liquidation.

Firstly, it’s key to note that no – liquidation does not mean you’re banned from becoming a director of another company. It’s a common misunderstanding, but it shows the level of ignorance that floats around on the subject of insolvency.

Liquidating a limited liability company means that (as the name implies), that the directors face little risk is the company fails, just so long as they have acted properly and acted in time. Failing to do that is defined by failing to act in time, act responsibly, keep accurate books, records or continue to take credit despite knowing that you company could not possibly repay it. If that’s the case, you personally would be at risk of financial loss, or perhaps worse.

These actions are usually described as ‘wrongful trading’, and if an accredited liquidation expert can prove that there was wrongful trading then you, personally, will be at risk. Personal liability can be attributed for company debts, and you could be forced into paying them back.

Otherwise, your risks are extremely limited. They can be limited further by entering voluntary liquidation as soon as possible, if it’s clear that your business has no future. There are plenty of companies out there which will analyse your businesses potential if you can’t see it, but if those tests come back negative, then liquidate as soon as possible.

If the OR finds that directors have knowingly traded whilst insolvent, failed to act, took credit without reasonable prospect of repaying those debts or failed to submit accounts, then you would face personal action? It’s known as “lifting the veil of incorporation” and if it happens, you could be made liable for VAT, PAYE and creditors monies from the time that you should have been aware that the company had no chance of surviving the troubles it has.