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Advice
In the Red: Finding a bankruptcy lawyer Before deciding to engage an attorney, it's advisable to spend some time carefully and honestly evaluating your financial situation, possibly with the help of a qualified financial professional.  Today, U.S. bankruptcy law is a federal court process designed to help give debtors, both consumers and businesses, a sensible way to begin new economic lives. Ideally, hiring a bankruptcy attorney will help eliminate and repay debts under a bankruptcy court's protection. There are two types of bankruptcy: liquidation and reorganization.
In a liquidation bankruptcy (known as Chapter 7), you would ask a bankruptcy court to wipe out your debts. In exchange for the discharge of debts, your nonexempt property would be sold and the proceeds would be used to pay off your creditors. This may not be worthwhile if you can't wipe out enough debt (not every kind of debt qualifies) or if you have to sacrifice too much property. In a reorganization bankruptcy (known as Chapter 11, 12, or 13), the debtor files a plan with the court that outlines a proposal for repaying his creditors. Some debts must be repaid in full; for others, only a percentage of the balance must be repaid. Others aren't paid at all. The amount a debtor must repay depends on the amount of property he owns and the types of debts he owes. If you have secured debts (current car notes, current mortgage payments, student loan debt or tax debt) under $871,550 and unsecured debts under $269,250, you can file for Chapter 13. Consumers with debts in excess of the Chapter 13 debt limits and businesses can file for Chapter 11 — an intricate, time-consuming and expensive process primarily used by businesses. Hiring an attorney can be helpful at several stages of the bankruptcy process. Your attorney may be able to negotiate with creditors to settle your unsecured accounts (for example, your credit cards, utility bills, personal loans and business debts) for less than the balance owed, giving you an alternative to bankruptcy. See these profiles of bankrupty lawyers on Kudzu.com. An attorney also can help you evaluate your options when deciding which type of bankruptcy to file. If you face numerous claims and have significant assets at state, a bankruptcy lawyer can provide specific help in setting assets in order and handling the files. Before deciding to engage an attorney, it's advisable to spend some time carefully and honestly evaluating your financial situation, possibly with the help of a qualified financial professional. Related Articles  Would you like to comment on this article?Nobody has commented on this article yet. Be the first. Submit your comment using the form below. |
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