Bankruptcy Attorney on Chapter 13 Filing

A bankruptcy attorney is a legal professional who specializes in cases that involve people and other entities who are in financial trouble. This professional counsels his clients regarding the best measures to avoid total financial meltdown and loss. There are two basic options that the lawyer can recommend to his client regarding financial troubles especially those focused on being bankrupt. These are Chapter 13 and Chapter 7 options. There are slight differences between the two options and this article is focused on the former rather than the latter.

Chapter 13 Bankruptcy

This type of trouble is very common these days because of the economic and financial crises that have hit many parts of the world. A bankruptcy attorney is quick to assure that many individuals and companies are experiencing troubles economically and many have opted to file as bankrupt in order to salvage what they can and eventually start anew. Some individuals and entities may have consulted a lawyer whose specialty is this and he may have recommended filing for Chapter 13. Basically it focuses more on helping individuals rather than companies.

This type of bankrupt option is actually advantageous for individuals, companies or entities that have hit a snag in the payment schedule of their loans but still retain some ability to get back on track. People who file for this choice are those who may have been laid off or lost their jobs but can still apply for another one. The time that they are looking for jobs and other work options is the time that they have difficulty paying for their mortgages and loans. The bankruptcy attorney can advise them regarding the best time to file for Chapter 13 and he can also help in the actual filing of the necessary paperwork in order to open any options that the lender might have in order to help the borrower. After filing for this, the court will stay any foreclosure proceedings as well as keep creditors away until such time that a payment schedule is established. A special provision that this option has is the protection of third parties or co-makers of the debt.

In most cases, a court assigned individual or a trustee will receive the scheduled payments as decided by the court. This trustee is the one who will then distribute the payments to those whom the client owes. Contact between the person who borrowed and those from whom he or she borrowed from is limited or none at all. This is so that there are no complications stemming from collections and threats.

These are just a few of the advantages that the bankruptcy attorney might highlight to his client regarding this option. It is always a good idea for the client and the lawyer to have a discussion in order to clear any notions and misunderstandings that the word bankrupt may imply. The client is encouraged to ask and clarify whatever he or she wants while the lawyer should be clear regarding the implications and obligations that filing Chapter 13 brings.