Whenever a debtor files for bankruptcy the first thing that comes into his or her mind is to clear all outstanding debts as fast as possible. This is because they know that in the process of filing for bankruptcy the creditors will be calling them and asking them for their money. But, when declaring bankruptcy, the majority of debtors receive more negative remarks than positive ones. The negative remarks come from credit card companies, tax assessors, mortgage lenders, banks and other creditors who are loaning money to borrowers.
The first four issues that are raised by creditors in dealing with debtors who are filing for bankruptcy is termed as "debtor-friendly" issues. Creditors are cautious when lending money to people who's futures are in risk. They attempt to stay out of this situation as much as they can defensa deudores. These four issues generally include extension of credit, foreclosure, seizing of assets and selling of assets. Let's examine each individually to see how they impact the credit score of a person who is filing bankruptcy.
Extension of Credit: This strange rule in bankruptcy is for debtors. The majority of debtors believe that if they employ an experienced bankruptcy attorney, they can get an extension of credit without providing any evidence that proves they are financially unstable. However, this isn't true and the rule of bankruptcy must be strictly observed. The court may deny credit to those who fail to show proof of financial instability. They must demonstrate that they are not able to pay the minimum monthly sum.
Foreclosure If the debtors hired a competent bankruptcy attorney, then they are likely to convince the court that it would be detrimental if they were allowed to foreclose on their personal property. It is not easy to convince the court, and it can take several months before they reach a decision. After the verdict is rendered the debtors are responsible for all expenses incurred by the lenders which include attorney fees. The costs incurred by lenders include commissions and fees for filing and preparing the petition, as well as the costs incurred for foreclosure sale. Even though lenders are not able to collect any cash from debtors, they still want to get their money back.
Attorney fees If the debtors hired an experienced lawyer and are able to convince the court that foreclosure is not a good idea. Lenders lose a lot of money, and they also suffer the consequences of the sale of the property. In this situation you must convince the judge that the loan should have been paid in complete and timely defensa de deudores. Only an experienced attorney can evaluate the case and determine if debtors should file for bankruptcy. In such a situation an attorney might suggest whether the debtors should pay for the expenses that lenders incur, including attorney fees. It is advisable to hire an experienced attorney and seek the most appropriate advice.
Costs for Attorneys: The cost of attorney fees depend on the type of case, the state where the case is filed, the amount of work required, and the duration prior to the hearing. The results of most cases are the basis for the attorney's fees. The attorney does not have to use every trick to convince the court that the debtor must be accountable for the cost in bankruptcy cases. He or she may seek the counsel of financial experts or examine the debtor's financial statements. A competent bankruptcy judge will be able determine the probable losses, after taking into consideration the costs and make an agreement on whether or should not be able to pay the debtor.
