Bankruptcy Lawyer - Your Partner For A Fresh Start

It's the red mark on a financial record that people dread to hear. Bankruptcy has a negative stigma in society. It's easy to understand why. Filing bankruptcy is something most people would hope to avoid. However, there are times when it makes good sense to file. For businesses, it can allow the ability to reorganize a company and better resolve debts. For individuals it can mean complete relief from debt, or at least a manageable way to pay it. There are benefits and consequences to filing, so you'll want a good bankruptcy lawyer to represent you throughout the process.

For individuals, the most common type of bankruptcy is Chapter 7. It's often called a straight or wipe-clean bankruptcy because it effectively eliminates all debts, in exchange for heavier penalties in creditworthiness. In recent years, laws Chapter 13 is also common. It is based on a rehabilitation plan. The debtor keeps his assets but has up to five years to pay off his debts via a payment plan. A Chapter 13 stays on the debtor's credit record for seven years, as opposed to ten years for a Chapter 7. Chapter 11 bankruptcy is similar to a Chapter 13, but designed for businesses or individuals with many assets. It allows for the company or individual to restructure their business while under a debt repayment arrangement. Chapters 9, 12, and 15 as the remaining types, but have more specialized uses. 

If you are considering bankruptcy as a serious option, a qualified and professional bankruptcy lawyer is crucial in your decision making process. While it is possible to self-file, bankruptcy is a major decision and can have long lasting impact on your credit and financial future. The choices you make can affect you for a decade or more. A bankruptcy lawyer can also help you with related financial decisions. Many people considering bankruptcy are dealing with some other sort of financial turnover, such as a failed business or a divorce. A top bankruptcy lawyer will be able to assist you not only with the bankruptcy itself, but with the outlying effects as well.

In 2005 the US Bankruptcy Code was changed. Prior to 2005, filing for bankruptcy was easier, which made bankruptcy fraud a bigger risk. This applied especially to Chapter 7 bankruptcy, which does not require repayment of included debts. Under the new rules, those filing for Chapter 7 are required to pass a means test to determine whether they have the disposable income to pay their debts. If it is determined that they have sufficient income, the bankruptcy would be denied. This is another way having a qualified bankruptcy lawyer is beneficial. Your counsel can lead you in the right direction, which will help you avoid time and filing fees on a doomed application.

For many people, filing for bankruptcy is a good way to control the pressure of debt. The consequences are serious, however, so it's crucial to make smart and responsible choices. Before you make a final decision on bankruptcy, make sure you have good advice and information from a qualified bankruptcy lawyer. You'll be better informed and well represented from beginning to end, which is a great relief when putting your future in the hands of the federal government. Debt is not an easy problem to deal with, but with the right help, you can make it easier on yourself.