A prospective client contacted me and wanted to be able to continue with a foreclosure action against a defendant who had filed bankruptcy. The client was anxious to move quickly, as he was not receiving his payments under the purchase contract.
As soon as I reviewed the bankruptcy court docket and information, I saw that the case had been filed about two-and-a-half months ago. This was a Chapter 7 bankruptcy case, which only lasts a little under four months.
I told the client that he could pay me and pay the $181 court filing fee, and I expected I would fairly easily be able to get him the relief he sought. I also told him that the Chapter 7 case would likely be over less than two weeks after the date I would expect to get the order granting him his relief.
Did the extra few days provide enough benefit to make it worthwhile? He decided it did not.
Had the client told me of the bankruptcy as soon as he learned about it, we could have gotten him the relief he sought and in a very timely manner. By the time he contact me he could already have been proceeding in state court.
Bankruptcy is a form which requires creditors to take action. The court will not be taking action for you. Always let your attorney know as soon as you receive a bankruptcy notice, because timing can be everything.