FILING BANKRUPTCY CAN GO SO VERY WRONG

FOR IMMEDIATE RELEASE
Chicago, Illinois, United States of America (Free-Press-Release.com) December 6, 2010 -- A successful bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply can’t be paid while offering creditors a chance to obtain some measure of repayment based on what assets are available. In theory, the ability to file for bankruptcy can benefit an overall economy by giving persons and businesses another chance and providing creditors with a measure of debt repayment.

The actual origin of the word bankruptcy comes from two Latin words “bancus,” which means a bench or a table, and “ruptus,” which means broken. It is easy to tell how the two words were combined to make up the modern version of the word bankruptcy. The current legal system defines bankruptcy as “a legal proceeding involving a person or business that is unable to repay outstanding debts.” The bankruptcy process begins with a petition filed by the debtor or on behalf of the creditor. All of the debtor’s assets are measured and evaluated, whereupon the assets are used to repay a portion of the outstanding debt. Upon the successful completion of the bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.

In the past few years, Chapter 7 bankruptcy filings have increased from 800,000 in 2007 to 1.4 million in 2009 of which 413,293 in 2007 to 819,362 in 2009 where granted. With a 50 percent increase in bankruptcy filings, it could be assumed that the process of bankruptcy has become a much easier undertaking. If that is your belief then you would be sorely mistaken.

Bankruptcy is a legal process which can have severe consequences if conducted and completed incorrectly. If bankruptcy is being considered as an option it is this author’s suggestion to find a specialist. According to Ariel Weissberg, CEO of Weissberg and Associates, a 29 year litigator specializing in bankruptcy and foreclosure law states “Laws continually change in bankruptcy with the onset of new political administrations. Do not think that bankruptcy is an easy process and one which an individual can undertake without proper legal representation. When and if filing for bankruptcy becomes an option, find a lawyer who has knowledge of the most current laws and decisions, provides their client’s with a process, and uncovers every financial aspect of the client’s life. The lawyer should treat the bankruptcy filing process as a severe financial planning with serious immediate and long term consequences for both the client and their family.” The reality of bankruptcy is there is nothing simple about it. If the process and filing is done incorrectly or if an inexperienced lawyer is hired for representation, a discharge may not be granted, and the client might end up in jail.

According to the Criminal Investigation Information System, individuals being incarcerated for bankruptcy fraud have risen 61.9% since 2008. More commonplace then expected the lack of competency by a lawyer has caused severe consequences. In Billings, Montana on July 15, 2009 Donald Keith Ferguson, a resident of Fromberg, Montana, was sentenced to 41 months in prison, to be followed by three years of supervised release, and ordered to pay a $400 special assessment and $80,000 in restitution. Ferguson was sentenced after having been found guilty of bankruptcy fraud, obstruction of bankruptcy court proceedings, interference with Internal Revenue Service (IRS) Laws, and attempt to evade or defeat tax. According to his case file his testimony and documentation illustrated that during the course of the bankruptcy proceeding Ferguson made misleading statements, he and his attorney omitted facts, and generally frustrated the bankruptcy proceedings by his lawyer stating that his client had a secured lien against him in the amount of $100,000,000,000, providing evasive and inaccurate accounts of his client’s income, omitting bank accounts, not fully disclosing all of his clients real property, and generally making frivolous filings. According to Mr. Weissberg, “the press for time of either the lawyer or the client or apparent emergencies, such as an imminent judicial sale, are absolutely no excuse for the failure to carefully assess the risks and consequences of filing bankruptcy and obtaining then properly documenting all of the information required by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure.”

Bankruptcy laws were set up for the honest debtors and most debtors are honest, but have fallen onto hard times due to circumstances including a death in the family, health related bills, job loss, and mortgage fraud, among others that were out of the individuals control. And yes bankruptcy litigation can be costly. Even so, it is a priority that you as the debtor understand the bankruptcy process, choose your representation wisely, and ultimately the bankruptcy proceeding will go smoothly allowing an opportunity for a “fresh start”.

Over the course of the next two weeks a series of articles will be available defining in detail the process of bankruptcy by Mr. Ariel Weissberg. These articles will provide simple steps to avoid potential incarceration and will help to stop creditors or the bankruptcy trustee from seeing and obtaining a denial of a discharge in bankruptcy. For more information about Mr. Ariel Weissberg or bankruptcy in general please contact Weissberg and Associates at (312) 663-0004.

Ariel Weissberg     BANKRUPTCY     Chicago     debt     foreclosure     law     mortgage fraud     Weissberg and Associates