Bankruptcy

If you are dealing with difficult financial problems, either in business or in your personal life, bankruptcy may provide a way to get back on track. Many reputable companies and individuals have had to go this route, and if you are struggling, there is no shame in considering your options. It may or may not be your best option, but seeking advice from a knowledgeable bankruptcy attorney can help you understand what you can do to help alleviate the very real financial pain.

A bankruptcy case usually suggests an individual or company (a "debtor") cannot pay its debts; but it means much more than simply being insolvent (or "broke"). Bankruptcy could allow a debtor to restructure and get its business back after some time, or it can allow a way for an individual to liquidate assets, pay debts, and still retain sufficient materials for living (allowing for later financial recovery). The legal action is initiated in federal court under the US Bankruptcy Code, although other provisions may play a part (for example, there are criminal and tax implications in some circumstances).

Bankruptcy may be voluntary or involuntary, and the commencement of a bankruptcy case creates an "estate," which has special treatment under the US Bankruptcy Code. The filing of a case causes several things to happen automatically, not all of which are favorable. The bankruptcy filing will lead to creditors being put on notice, some of which debts may be discharged, while others remain. There are many legal issues involved, and well-informed advice should be part of the discussion with family, friends, business associates, creditors, and other people and companies involved.

If someone or a business owes you money, products, or services you have paid for, and you receive a notice that a bankruptcy has been filed, Lewis Hansen attorneys can assist you in protecting your rights under the Bankruptcy Code. This includes unpaid wages and interests in profit-sharing plans if your employer files a bankruptcy. There are procedures our attorneys can take to insure your claim is filed properly and receives priority treatment where it meets the requirements. We can also help with Motions for Relief from the Automatic Stay, requests for abandonment, or adversary proceedings to protect your rights. Do not give up on a claim just because the debtor filed a bankruptcy case.

If you are experiencing a difficult financial situation and having questions about your bankruptcy options, or if you are a creditor dealing with a debtor's bankruptcy, please call (801) 746-6300.

 

 

 

 

Lewis Hansen 
Attorneys at Law

The Judge Building
Eight East Broadway, #410
Salt Lake City, UT 84111

P: 801-746-6300
F: 801-746-6301

reception@lewishansen.com

 

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