Bankruptcy Lawyer - What They Can Do For You

There’s no doubt about it: for most Americans today, the economy is as tough as it’s ever been, leaving little room for error, and fewer safety nets available for when things go wrong. For those struggling under the weight of unmanageable debt, dreading each new day as one filled with harassing creditor calls and a mailbox stuffed with collection notices, it may seem as if there’s no end in sight. Fortunately, consulting with a bankruptcy attorney is an option available to most people, and one that may help present new solutions to difficult problems.

Bankruptcy is not an option that fits everyone, and even if it’s right for you, it’s important to consult with a qualified lawyer before taking steps in that direction. When it comes to private individuals seeking to petition the court for bankruptcy, there are two distinct paths available. One is filing Chapter 13, often called Wage Earner’s Bankruptcy, because it is most suitable for those currently employed, but so far in debt that even living as frugally as possible seems to yield no results. When a person chooses this option, he’s able to keep his home, automobile, and other assets, but he essentially puts the court in charge of managing his financial future. A trustee is appointed, and delegates how the person’s income is spent each month, making payment arrangements with creditors that reduce payments, interest rates, and put an end to exorbitant fees and creditor harassment. This may last anywhere from a year to five years, and provides a viable option for a person who has run out of options for handling debt, and is genuinely interested in making a lifestyle change for the sake of his financial future.

The second option is Chapter 7, often referred to as Liquidation Bankruptcy. The Chapter 7 process is usually a quicker one than Chapter 13, and is designed for those who simply have no way to pay their debts, often due to unemployment, or a medical, physical, or emotional impairment that has left a person unable to work, living on a disability check that isn’t sufficient to pay off growing debts. When filing Chapter 7, the court typically orders all of a person’s assets to be sold, and the proceeds used to pay off the most important creditors. The amount that is still outstanding after this process has been completed is often discharged. It is imperative to have the advice and representation of a skilled bankruptcy lawyer when pursuing Chapter 7, as it is typically the only way requests for exemptions are approved by the court, allowing the person filing to retain ownership of his home, automobile, or business during the proceedings.

Although these are by no means quick fixes to difficult issues, they exist in order to offer hard-working Americans a second chance at a solid and promising financial future, and a way to begin to rebuild after an economic collapse. A consultation with a skilled bankruptcy attorney is typically the best way to determine if either option is a viable one for you, and what you might be able to expect if you do make the choice to file.