Bankruptcy filing involves the submission of accurate information in order to ensure the process is fair and transparent. The information submitted plays a very vital role in the bankruptcy court decision making.
The common focus of information can be listed as follows-
- What is the amount of money do you make from all your consistent sources?
- How much dues do you have pending?
- What are the different assets/properties owned by you?
- What is your monthly expenditure budget?
- Was there any transfer of asset recently?
These are some critical questions which are to be addressed before filing for bankruptcy. There has to be some issue with respect to the lender claims for the court to resolve. Either the claim should be disputed, unliquidated or contingent in order for the court to continue with the proceedings of the case. In straightforward bankruptcy cases, the case is about the amount due. For instance, if you haven’t been keeping up with the car mortgage payments, the net due will be the focus amount in straightforward cases. Learn how you can save your car even while filing for bankruptcy by logging on to Recovery Law Group now.
When realizing the claim amount is complicated
Not all bankruptcy cases can be simple to equate is so easily. They might involve some tedious bits of calculation, estimation, and paperwork. This can happen if the bankruptcy filer has any of the following claims-
- Contingent claim
If the claim due depends on a particular event, circumstance or future action, it is referred to as a contingent claim. It can be very difficult to consider the amount of liability or benefit one can realize from a contingent claim. It is also very difficult to judge if it should be considered as an asset or a liability depending on circumstances during the bankruptcy procedure.
- Unliquidated Claim
If the dues cannot be substantiated to a clear number, it can be referred to as an unliquidated claim. In this case, the debt exists but it is difficult to arrive at the exact dollar amount of the debt. This is very commonly seen with respect to lawsuits where compensation varies and there is no possible way out to make a provision or estimate for the amount of liability or benefit.
- Disputed Claim
The case of a disputed claim is not determinable as there is a conflict between the lender and the debtor with respect to the amount due. This is commonly seen with respect to IRS or some government agencies. For instance, you filed a tax return and as per IRS you owe $10,000 but you think you owe only $5,000. This is a disputed claim and it might well be $5,000 if you file an amended return and justify your thinking to IRS. IT might well be $10,000 if you fail to prove your $5,000 liability point. When filing bankruptcy, you shall disclose the actual lien and not the amount you personally think you owe for the purposes of accurate reporting.
Listing claims and pay off of claims
It is important to list all types of claims when filing for bankruptcy in Los Angeles. Any omission can prove to penalize as it is undue manipulating of the bankruptcy court. Also, you might end up losing on the opportunity of getting a claim discharged or released. Paying off claims when filing bankruptcy works in a set procedure. The steps can be illustrated as follows-
- The bankruptcy trustee appointed by the bankruptcy court first sends out a notice to all lenders alerting them about an ‘asset case’
- The lenders need to file a proof of claim before a pre-defined deadline in order to recover their debts from the proceeds
- The bankruptcy trustee shall release the proceeds as per the priority defined/arrived based on different parameters and circumstances. The proceeds are released only after verifying the proof of claim documents
No matter what the circumstances are, there is always an easy way out if professional advice and help are around. It is just a matter of a few digits away from you. So, why complicate more just dial 888-297-6203 to uncomplicate your finances now!