The idea of filing for bankruptcy is frightening. Many people aren’t sure if it’s the right move for them financially, while others are worried about what will happen to them once the process is finished. No matter the situation you are in, it’s important that you consult an experienced bankruptcy mediation attorney from Shapiro Mediation Services in Massachusetts. This is a challenging process that should only be handled with the help of a professional. While seemingly disappointing on the surface, long-term, bankruptcy is a viable method for returning to calmer financial straits.
The Various Types of Bankruptcy
Before deciding whether or not you should file for bankruptcy, it’s important to have a clear understanding of the various types of bankruptcy available for your situation. Each type of bankruptcy is different and the way it is handled in mediation will also be different. The types of bankruptcy include the following:
- Chapter 7: This bankruptcy method focuses on the liquidation of assets, collecting those assets, and then distributing the value of those assets to creditors.
- Chapter 11: Businesses and individuals eligible for this type of bankruptcy are allowed to consolidate their debt while keeping their jobs and lives intact.
- Chapter 13: This type of bankruptcy attempts to preserve the filer’s capital with the re-apportionment of their debt.
How is Mediation Used to Resolve Bankruptcy?
For the most part, any bankruptcy claim can be handled ad hoc like all other legal issues you face in life. As long as both parties involved agree that mediation is the best method to resolve the bankruptcy filing, mediation can move forward.
Mediation can also be used when there are multiple, large claims involved in the bankruptcy process. All of these claims, if stemming from the same bankruptcy filing, can be bundled into a process that has an order to it so issues can be resolved using mediation early in the process.
In order to resolve bankruptcy through mediation, an order must be submitted with the bankruptcy court that oversees your jurisdiction. This order must state that bankruptcy will be handled using mediation and will specify the claims that will be resolved in mediation. The order submitted must also include the date, time, and location for each mediation meeting. The notice should have accompanying documents that can be examined prior to the start of mediation by both parties.
What Does Mediation Offer When Filing for Bankruptcy?
If you decide to file for bankruptcy, mediation can offer you the following benefits:
- A method that helps both parties focus on settling the issue in front of them
- A method that helps push you forward in resolving your financial issues
- A method that helps both parties overcome impasses they have with each other
- A method that allows both parties to keep their working relationships intact
- A method that allows both parties to be creative in resolving their issues
- A method that makes it easier to deal with multiple claims that are complicated
Mediation is completely confidential, which means both parties are free to express their opinions and concerns without fear of repercussion. Anything that is used or presented in mediation cannot be presented as evidence if the case moves to trial either.
One of the biggest benefits of bankruptcy mediation is that it is quicker than litigation. It’s important to note that not every bankruptcy filing will be resolved through mediation. However, if your situation can be resolved using mediation, it can be a more expedient option than going through the Massachusetts bankruptcy courts.
Both parties involved in mediation control the outcome. The mediator does not make the decision as to how the issue is settled. Instead, the mediator is there to move the process along smoothly and keep both parties focused on the task at hand. When you control the outcome, you are more likely to negotiate willingly with the other party.
Quite possibly the biggest benefit of bankruptcy mediation is that it helps maintain personal and business relationships. Both parties will have a better understanding of each other once mediation is complete, which can help both parties work better together after the fact.
Speak to a Massachusetts Bankruptcy Mediator Today
When the time comes to file for bankruptcy, it’s important that you work with an experienced bankruptcy mediation attorney. This can be a confusing and stressful process that should be dealt with accordingly so you are properly represented.
The team from Shapiro Mediation Services in Massachusetts has decades of experience representing clients who file for individual or business bankruptcy. Call our office at (339) 298-7733 or complete our online contact form to schedule a free consultation with a Massachusetts bankruptcy mediator.