Bankruptcy

Filing Bankruptcy gives you time

By David Leibowitz, Illinois and Wisconsin Bankruptcy

One of the little known benefits of bankruptcy is that it give you more time to do the things you need to do. ?If you are preoccupied paying debts, you may not have had the time to do other things which you are legally required to do. Or you may not have had the time to protect your legal rights. ?The Bankruptcy Code very thoughtfully has given you some help for this. ?The time extensions granted by the Bankruptcy Code were designed to protect trustees. ?So this doesn’t help debtors in chapter 7 cases. ?But it does help debtors in chapter 11 cases. ?And it does help debtors with cooperative trustees in chapter 12 and chapter 13 cases.

Let’s take a closer look.

Extensions of time granted by law, order or agreement to start a lawsuit

In these cases, lawsuit can be started before the later of the end of the period or two years after the order of relief, whichever is later. ?That’s the date a voluntary case is started or the date that bankruptcy is declared in an involuntary bankruptcy case. ?In the case of claims against a debtor in a chapter 12 case or chapter 13 case, the extension is limited to the end of the period or 30 days whichever is longer.

Filing a pleading, demand, notice, or proof of claim or loss, cure a default, or perform any other similar act

In these cases, what has to be done may be done before the end of the applicable period or 60 days, whichever is later.

Why is this important?

Many people in bankruptcy find their economic lives in shambles. ?This law gives you time to catch your breath and do what has to be done in your bankruptcy case. ?Even if you file a chapter 7 case, it is often to your benefit to work with the trustee to file actions which y0u might not have even thought about before. ?You could end up paying all your creditors and even have surplus left for yourself.

Lakelaw will help you determine what rights you have. ?We’ll work to preserve and pursue them even if you neglected to do so before your bankruptcy case. ?Call us today to talk about your consumer bankruptcy case at 1 866 LAKELAW (525-5329). ?Lakelaw is a Debt Relief Agency under federal law.

Full post as published by Bankruptcy Law Network on January 27, 2010 (boomark / email).