Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating assets to pay their debts or by creating a repayment plan.
Bankruptcy is also a legal status of a person that cannot repay the debts it owes to its creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Here is a recent Lawyer Q&A that I participated in. For more information about bankruptcy call the Law Office Of Paul Stuber in Boulder Colorado at (303) 442-6448.
Question: If I filed for bankruptcy and later got served a summons for court over a debt I had listed on the bankruptcy petition is there anything I can do?
Paul Stuber: It is important to let them know about the bankruptcy right away. Sometimes the contact that was in the petition does not get it to the collection attorney right away. As soon as they know about the bankruptcy they must stop the collections effort under Federal Law. It doesn’t hurt to remind them of that fact and they should let you alone. If you have an attorney make sure the collection attorney is given your attorney’s name and number. If they continue they are in violation of the automatic stay under the Bankruptcy Federal Law.