Commercial Litigation - Types of Cases and Their Procedure
The question arises as to whether a judgment debtor can raise a defense of debtors' inability to repay. Under generally accepted rules, if a judgment debtor files a counter-claim against you in the bankruptcy case filed by you in the bankruptcy court, your opponent can move for a default judgment against you. If such move is made prior to the filing of the bankruptcy petition itself, then it is called an 'interrogation.' In an ordinary case, the procedure is quite the same; but in a bankruptcy, the procedure becomes complex. For starters, the bankruptcy petition must contain a claim that the debtor is unable to pay the debt. Then, the court must order a thorough investigation of all relevant facts in order to determine whether or not the claim has any truth to it.
In other words, the party challenging the debt will be asked to show cause why a default judgment should not be issued against it. The party challenging the debtors' inability to pay must file a separate action in the bankruptcy case in which case the judgment will be granted automatically against the debtor. On the other hand, if you file a petition for a final judgment in the bankruptcy case, then the other party challenging the debtors' creditworthiness may do so as well. Such action is called an attempt to toll the time for appeal. The parties challenging one another's creditworthiness are allowed to file separate actions in the bankruptcy case in which case the same procedure will apply.
There is also a third type of procedure which is referred to as an application for leave to proceed. In this third type of procedure, the litigant who wishes to pursue a debt relief option, i.e., debtors' opt out option, must file an application with the fed.r.civ.p. If the feed.r.civ.p. court finds that the application for leave to proceed is justified, the court may issue the writ of bankruptcy. The procedure to grant a bankruptcy writ and whether a non-judicial or judicial procedure to declare the failure of the debtor to meet his obligations will be described in separate documents.
In certain cases, the court may request the person who wishes to declare himself bankrupt to provide additional information to the clerk of the court. The information requested can relate to the original amount of indebtedness and the date the debt was first entered into the court records. Information on the person's current financial position and other relevant facts pertaining to the person's bankruptcy can be provided by the applicant if he so requests. The application to the clerk of the court must be filed along with copies of all relevant financial statements of the debtor and his financial institution. The applicant will have to produce these documents to the court within a stipulated time after the hearing of the case defensa de deudores.
If the creditors do not agree with the proposed settlement for debtors' credit, they can file a claim for commercial litigation against the debtor. Commercial litigation is a procedure in which a creditor files a complaint against a debtor for violation of contract. Creditors who file commercial litigation are known as defendants. Commercial litigation involves three parties; the creditors, the debtor and the attorney for the debtors. The procedure of commercial litigation involves issuance of an order for payment or alternatively an injunction against the debtor. This is followed by the examination of the merits of the case by the courts and issuance of final judgment.
After receiving the defendants' answer to the complaint, the plaintiff filing the action for appeal may appear in the district court on behalf of the defendants. The parties then submit briefs to the court reviews the briefs. The final judgment on the appeal may be in favor or against the debtors. In most of the cases, the debtors' appeal is rejected by the court and they are awarded a final judgment. If however, the court orders the defendants to pay the debtors, they appeal the decision to the Fed. Gov. An opinion of the Fed. Gov. is published after a short term which is also called the term of limitations.