Bankruptcy Attorney and How They Help
This article explains the role of a bankruptcy attorney in helping people with their financial crises. It also talks about some of the more common kinds of bankruptcy cases.
There are two basic choices that a bankruptcy attorney may present to an individual or a company who has problems with their finances. These are the Chapter 7 and the Chapter 13 cases that focus on being bankrupt and the resolution of this problem. There are other chapters that talk about financial problems but these two are the usual ones that are commonly presented to clients by their lawyers.
The Chapter 7 one as stated in the United States of America code basically helps with the liquidation process of the individual or the entity’s properties and assets. This is the most common form that people file for when they encounter debts and financial problems. For individuals, this solution entails having most of the individuals properties and assets being liquidated under the guidance of another individual who will then distribute the proceeds to those whom the debtor owes. The bankruptcy attorney will be quick to add that this form of being bankrupt still allows the client to keep some of the assets that t he court deems exempt from the liquidation. A house and transportation can be part of the exemption. For companies, the same s also applied but for those with employees, there is a possibility that the company will not be terminated and the employees will still continue to work. On the other hand, a large company runs the risks of having whole divisions being broken up and sold to other companies during the liquidation.
In this kind of state, the individual files for it under the impression that he or she has no viable assets or properties to liquidate. This means that income is the most common form of payment for debts. Those whom the debtor owes may actually ask the court for an involuntary bankruptcy in order to collect anything that can be liquidated. A plan is then made that will outline how the debtor should pay the dents in a span of a specific number of years. This number of years is usually around three to five years depending on the debtor’s income. The bankruptcy attorney will point out the advantages and disadvantages of this kind of chapter. It is actually dependent on the state of the individual who is filing.
So basically, the bankruptcy attorney helps the individual or the company by presenting options and explaining their pros and cons. He will also be the one to file for bankruptcy in lieu of his client and appear in court with his client.
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