Bankruptcy

Bankruptcy ? What?s an ?order for relief??

By David Leibowitz, Illinois and Wisconsin Bankruptcy

The Bankruptcy Code uses terms which people don’t always understand.

One thing clients understand is that their lawyers file a bankruptcy case for them.

What happens when the case is filed? Automatically, upon filing a voluntary bankruptcy case, without any court appearance, notice, motion or other court proceeding, an order for relief is deemed to have been granted.

What is “relief”?

• It means that the person who has filed the bankruptcy case has become a debtor in bankruptcy.
• It means that the automatic stay is now in force and effect.
• This means that creditors can no longer make collection calls or otherwise harass the debtor
• This means that creditors can’t take actions to collect a judgment
• It means the creditors can’t garnish wages.
• It means that foreclosure proceedings stop, at least until a lender can get relief from the automatic stay.
• It means that the date is established for determining look-back periods for preference and fraudulent transfer claims.

The order for relief is of utmost importance in a bankruptcy case. ?The order for relief is why one files a bankruptcy case. ?Short of obtaining the discharge in bankruptcy, it is the most important event in any consumer bankruptcy case.

Lakelaw helps people in Illinois and Wisconsin obtain orders for relief in bankruptcy. ?We help people obtain discharges of debts in bankruptcy so that they can get a fresh start. ?For immediate relief, call 1 866 LAKELAW (525-5329).

Full post as published by Bankruptcy Law Network on January 23, 2010 (boomark / email).