What is bankruptcy? Is it the same thing as declaring bankruptcy? Can you even file for bankruptcy in the state of Pennsylvania? These are just some of the questions people ask when they are considering what is bankruptcy. Bankruptcy is nothing more than a chapter in your life that gets filed in the court system when you file in the proper manner.
Bankruptcy protects the lender from incurring any further losses and allows the debtor to continue paying debts as they were previously agreed upon. A bankruptcy petition essentially makes a new entity known as the trustee of the bankruptcy estate; basically a new person to take care of the debts and the liabilities. The bankruptcy petition freezing the debtor,s estate and puts the trustee in charge of the process, one which a bankruptcy attorney in Harrisburg pa could assist people through. There are certain requirements for each particular case, but the bottom line is that bankruptcy helps the debtor to repay their debts and avoid further financial loss.
There are two types of procedures through which the assets of the trustee are protected from fraudulent transfers. Both non-procedural and procedural exemptions apply. Non-procedural exemptions prevent the trustee from dealing with fraudulent transfers like outright transfers or preferential changes in ownership without the express authorization of the beneficiary. Procedural exemptions protect the trustee from having to deal with the process of a bankruptcy petition once the petition has been filed.
How are non-procedural and procedural exemptions tied together? Non-procedural exemptions are commonly tied to a non-judicial procedure known as an executory contract. An executory contract is a legal document drawn up by the person executing the bankruptcy estate in the state where the probate court is located. This contract lists all the duties and responsibilities of that particular person, including who they must pay taxes to, the person,s powers and duties within the estate, and what they have to do to resolve conflicts. If any problems come up in the future, the executory contracts will prevent them from making any further payments to any beneficiaries while the bankruptcy case is pending in court.
Formalities aside, this is the entire reason why it is important to hire a bankruptcy attorney in Philadelphia to stop fraudulent transfers and setoff. Bankruptcy attorneys in Philadelphia are very experienced at dealing with situations like this and will easily defeat any attempt by a creditor to transfer property or assets to someone not designated as the beneficiary of the bankruptcy estate in the court.
In summary, if you think that you have been the victim of fraudulent conduct, then it may be a good idea to consult a bankruptcy attorney in Harrisburg, Pa. Such an attorney can assess your situation and determine whether or not you have a legitimate case against the company involved. If so, then he can setoff your bankruptcy petition in the proper way, either by initiating a motion to setoff your default or by getting an automatic stay put on the company,s assets.