Bankruptcy Attorney-- Is Filing For Bankruptcy The Right Move?

With today’s current financial situation many Americans are faced with unemployment and an inability to pay their mortgages or other financial debt. It is a scary situation to be in. Some people feel they have no options and do not know where to turn. Even if you have exhausted all of your other options filing for bankruptcy may just be the smartest move you can make. While it may seem more like commonplace now more than ever, in reality most Americans know very little about bankruptcy. Here are some facts about bankruptcy that can help you decide if filing with a bankruptcy attorney is the right move for you.

Let’s start with the basics. The bankruptcy laws are designed to help individuals or businesses who are unable to pay their creditors by giving them a fresh start. This is done through the liquidation of assets to help pay for some of the debts and/or creating a repayment plan with the person who is in debt. The laws afford certain protections to businesses as the troubled business is reorganized or liquidated. And, all these cases are filed with federal courts under Chapters 7, 11, and 13. 

As a consumer and average citizen you should know that when a bankruptcy case is filed it is classified as one of two types. The first is voluntary, this is when an individual decides, after conferring with a bankruptcy attorney that it is in the best interest of the family or business to file. The second is when a creditor forces the individual, or debtor, as it is commonly referred to, into bankruptcy. It is advised that a debtor file voluntarily as they will then have more control over the terms and how they are set up and filed. 

A bankruptcy attorney can guide you through the entire filing process. You do not need to know anything about the laws in order to be protected by them. That is the job of your legal counsel to confer with you, and then advise you with the best course of action. Since, different chapters afford different terms it is good to know what kinds of protections you are eligible for. For example, if you file a chapter 13, a reorganization bankruptcy , it is likely you will be able to keep all of your assets. However, only you and a legal attorney will be able to determine if you are eligible for this type of filing. 

Filing for bankruptcy sounds like a terrifying situation to put yourself in. However, it is one of the most advisable ways to get yourself back on track. If you are no longer able to pay your bills and your debt is beginning to pile up, then getting the advice of a bankruptcy attorney is the right move to make. The laws are there for your protection. Filing a chapter 7 or 13 will help to secure some of the assets you have and get you back to a more financially solid standing.