Your Bankruptcy Lawyer Is A Valuable Asset

There is no need to ever feel discouraged, maligned or overwhelmed by the prospect of filing or needing a bankruptcy lawyer. It is no longer an idea intended only for corporations in need of a fresh start for the coming year; it is intended for the sole proprietor, the family, the teacher, and the chain restaurant owners attempting to stay afloat when debts attempt to pull them under. A local bankruptcy lawyer understands the inner workings of all of the chapters, paperwork, filing proceedings, what to sign and to turn over property if you want everything completed in a timely manner.

When you begin looking into the process to file, you wonder if you can, then you wonder if you should. You think about all of the chapters and which apply to you. You think about the ramifications and how they will apply to you. First, you, your small business or corporation has to be deemed in the grips of extreme financial difficulty. This is when your debts exceed your income or business profits by such a margin that you have to seize payments or you won’t be able to afford you day to day living or business expenses. Once your status has been determined, your bankruptcy lawyer can be the first to inform you of the three applicable chapters of the federal bankruptcy code. You may have heard of Chapter 7, Chapter 11 and Chapter 13 filings.

Your bankruptcy lawyer can be the first inform you if you should file. He or she will then walk you through each Chapter and the bankruptcy court proceedings. First, as an individual or business owner capable of a repayment plan, you will be advised to file for Chapter 13. Under this order you will be obligated to make payments to your creditors for an amount of time specified by the court. Second, if you are a business owner with an exorbitant amount of debt and have been deemed worthy of a Chapter 7 filing, your applicable debts will be wiped clear. With this court judgment you will turn over eligible assets to a court appointed trustee to liquidate your property and distribute the proceeds to creditors according to authority. Lastly, under Chapter 11 filings, also involves a payment plan while business remains operational for larger businesses and corporations.

A bankruptcy lawyer can be by your side throughout the entire stressful process of filing, presenting, court orders and possible appeals if you feel that you should be granted the right to file at this time, or the right to dismiss certain debts. An attorney who understands the ins and outs of this area of law is a great ally when dealing with bankruptcy court orders, trustees itemizing your assets and potential creditor harassment. Whomever you choose will be a lawyer looking out for your fresh start.