Bankruptcy Good Faith or Bad Faith
Is the Debtor Truly Insolvent
There are a great many checks and balances built into the United States Bankruptcy Code to ensure that relief in bankruptcy is afforded to debtors who truly need it. This process eliminates most of the would be cheaters. However, there are still times that determining if a person is truly Insolvent requires a little more analysis.
A Creditor or the Trustee Can Claim “Bad Faith”
Even if the Debtor appears to meet all of the requirements for bankruptcy, it still may be a bad faith filing. For instance, a person who has lost a lot of money gambling. Should the debts be discharged? Or should the Debtor pay at least part of the debt? What about a person who wants to discharge all unsecured debt and keep really high secured debt, like expensive vehicles? Sometimes the request for relief in bankruptcy just appears wrong to a Creditor or the Trustee. In this case a Motion is filed and the court will conduct a hearing to determine if there is bad faith. Here your bankruptcy attorney will present a defense on your behalf.
Bankruptcy Attorneys Prevent Bad Faith Claims
Avoid the possibility of being accused of filing a bad faith bankruptcy Petition. Hire a Chattanooga bankruptcy attorney that is experienced and will take the time to analyze your case. Often times a bad faith claim could have been prevented by the lawyer. Careful review by the bankruptcy attorney, and development of a good faith solution is the hallmark of Purple Law Firm in Chattanooga. Contact our Chattanooga Tennessee bankruptcy professionals today.