When Are Bankruptcy Lawyers Needed?
Misconceptions regarding bankruptcy restrict people from opting for it. Bankruptcy is a legally admitted inability to repay debts. Bankruptcy Law has been written to bail out people wailing under debt and assist them to make a fresh start. Bankruptcy is a legal course that aims at giving both the debtor and the creditor a level playing field. Bankruptcy lawyers help people decide their course of action if it becomes difficult or impossible for them to honor their obligations. When are Bankruptcy Lawyers needed? When a person’s debts are higher that his/her assets, bankruptcy lawyers help get out of this financial hole. Declaring bankruptcy involves wiping out or repaying debt under court protection. There are two types of bankruptcy filings: • Chapter 7 bankruptcy: This wipes out a person’s debt usually over a period of four months. Also called Straight Bankruptcy, it lets the concerned person make a fresh start. As per the law, assets of a person falling in the nonexempt category are
When a person’s debts are higher that his/her assets, bankruptcy lawyers help get out of this financial hole. Declaring bankruptcy involves wiping out or repaying debt under court protection. There are two types of bankruptcy filings: • Chapter 7 bankruptcy: This wipes out a person’s debt usually over a period of four months. Also called Straight Bankruptcy, it lets the concerned person make a fresh start. As per the law, assets of a person falling in the nonexempt category are sold or liquidated to repay the unsecured debts. However, in most cases, people do not lose any property. • Chapter 13 bankruptcy: This outlines consolidation bankruptcy. In other words, debt is reorganized. All the debts are rolled into single monthly payments. Under this type of bankruptcy, the debtor does not lose any of his assets. Creditors are restricted by the court from directly approaching the debtor. How to Choose Bankruptcy Lawyers A bankruptcy lawyer is the right person to advise you on whether you s
When a person’s debts are higher that his/her assets, bankruptcy lawyers help get out of this financial hole. Declaring bankruptcy involves wiping out or repaying debt under court protection. There are two types of bankruptcy filings: 1.Chapter 7 bankruptcy: This wipes out a person’s debt usually over a period of four months. Also called Straight Bankruptcy, it lets the concerned person make a fresh start. As per the law, assets of a person falling in the nonexempt category are sold or liquidated to repay the unsecured debts. However, in most cases, people do not lose any property. 2.Chapter 13 bankruptcy: This outlines consolidation bankruptcy. In other words, debt is reorganized. All the debts are rolled into single monthly payments. Under this type of bankruptcy, the debtor does not lose any of his assets. Creditors are restricted by the court from directly approaching the debtor. How to Choose Bankruptcy Lawyers A bankruptcy lawyer is the right person to advise you on whether you s
