Bankruptcy claims refer to formal court filings involving a person’s entire estate and account contents. In cases where a person can’t keep up with debt payments, they may need to file a bankruptcy claim to help them wipe out their debts. What happens is that some of their assets may be liquidated and the proceeds of the property sales used for some of the credit payments. This is the case in some claims such as a Chapter 7 filing.
Other bankruptcy claims may involve a restructured payment plan, as in a Chapter 13 filing. This allows the person to take a new approach to their debt payments. There are many other types of bankruptcy claims as well.
What Types of Issues Are Involved in Bankruptcy Claims?
Bankruptcy claims can often be complicated because they involve the person’s entire estate. Thus, certain other legal issues may become intertwined with the bankruptcy claim. Some examples of legal issues that commonly come up in a bankruptcy claim include:
- Credit card debt
- Mortgage payments
- Car repossessions
- Wage garnishment
- Property and real estate liens
Another issue is where there is a dispute between the debtor and a creditor. For instance, the parties may have a dispute over interest rates, or over the total amount of monthly payments that are missing. Here, contract issues can also be a factor, especially where there is a breach of a payment contract.
How Are Bankruptcy Claims Resolved?
Bankruptcy claims involve a high amount of court intervention when it comes to resolving disputes. For instance, a judge may order a sale of some of the debtor’s property in order to meet some of the payments. The court is also likely to monitor the borrower’s entire budget, spending habits, and expenses. The judge may also issue a monetary damages award if one party owes the other for financial losses. Thus, the judge’s discretion is often a major factor in bankruptcy claims.
Do I Need a Lawyer for Help with a Bankruptcy Claim?
Filing for bankruptcy can be a major task. It can involve several different legal aspects, and can also take some time to complete from beginning to end. You may need to hire a bankruptcy lawyer if you need help with a bankruptcy claim. Your attorney can represent you in court and can provide you with legal information to help settle your disputes or issues.