Three Options For Continuing Your Lawsuit When The Defendant Files Chapter 7 Bankruptcy

Posted by on May 26, 2016 in Uncategorized |

Many people are struggling financially these days, and being hit with a lawsuit for an accident may be the thing that finally causes a person to file for bankruptcy protection. If the defendant does this in your case, you could lose any hope of collecting the compensation due to you if you don’t act fast. Here are three things you can do to save your case when the defendant files chapter 7 bankruptcy in the middle of your lawsuit. Ask for the Automatic Stay to Be Lifted When the defendant files for bankruptcy, all lawsuits are either halted until the bankruptcy is resolved or automatically dismissed. One way to save your lawsuit is to ask the bankruptcy court to lift the automatic stay so your case can proceed. Unfortunately, since your suit is not secured by collateral, you would be considered an unsecured creditor. The court will typically only lift the automatic stay if the debt from the lawsuit wouldn’t be discharged in the bankruptcy. In the case of personal injury lawsuits, only accidents caused by the defendant driving drunk are non-dischargeable. Debts that aren’t listed in the bankruptcy schedules won’t be discharged either, so you may get lucky here if the defendant forgets to add your case to his or her paperwork. Challenging the Bankruptcy Filing and Discharge Another thing you can do is initiate adversarial proceedings and challenge the person’s bankruptcy filing and discharge. This is best done if you think your lawsuit has a good chance of being discharged by the bankruptcy court. During the hearing for the adversarial proceeding, you can request that the court do not discharge your specific debt or object to the entire bankruptcy. To be successful here, you have to show the defendant committed fraud or didn’t comply with the court’s orders in some way. For example, if you can show the defendant committed insurance fraud (e.g. staged an accident with you), the court may allow your lawsuit to survive the bankruptcy filing or dismiss the defendant’s bankruptcy case altogether. Wait Until the Case Ends and Refile The third option is to wait until the person’s bankruptcy case ends and refile your lawsuit afterwards. This is a gamble because the court may include your lawsuit in the bankruptcy discharge and you won’t be able to collect the compensation due to you at all. However, if your case survives the bankruptcy filing, you’ll have a better chance of collecting any compensation you’re awarded since the defendant won’t be able to file chapter 7 bankruptcy again for several years. The bankruptcy court provides powerful protections to debtors that can end your lawsuit before you’re awarded the money you’re due. Talk to an attorney...

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Tips For Using A Loan Modification To Avoid Foreclosure

Posted by on May 10, 2016 in Uncategorized |

Filing for bankruptcy is one method people use to stop a foreclosure from occurring, but this is not always the best option. After receiving the foreclosure documents from your lender, you may want to visit an attorney that specializes in foreclosure law. This attorney might be able to recommend using a loan modification program to put the foreclosure to a halt. Here are several things you should understand before using this option.  Getting Approved For A Loan Modification Takes Time And Effort A loan modification allows you to change the terms of your loan, and it is something your lender must be willing to do. This process is not simple by any means. It will take time and work, but this type of program is much easier if you have a lawyer working for you. Your lawyer will tell you exactly what documents are needed and what you must do. He or she will take care of communicating with the lender throughout the process, and you will simply have to do what the lawyer tells you. If the paperwork is not filled out accurately or if there are things missing from the application, the lender may deny the request. With the help of an attorney, you will have a higher chance of getting approved for the modification. If it gets approved, you will not lose your home to foreclosure at this time. You Can Apply More Than Once If you have already tried to get a loan modification and have been denied, you are free to apply again. If you tried to do this on your own the first time, hire a lawyer the next time. When you apply the second time around, make sure you know why the lender denied your request the first time. One reason lenders deny these plans is for lack of income. If this was the reason your modification was denied, get a second job to add income to your budget, or try offering a different set of terms that would result in a lower monthly payment. Your Hardship Letter Plays A Big Role In The Lender’s Decision One advantage of having a lawyer during this time is that he or she can help you write your letter of hardship. This letter is a necessity for anyone that applies for a modification, and it can help or hinder a person’s ability to get approved. This letter must clearly state why you fell behind on your payments, and your odds of getting approved will be much higher if you went through a major problem in life. This could be a divorce, the loss of a spouse, or a loss of a job. Foreclosure attorneys are highly experienced with...

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