Chapter 7 Lawyer and How He Helps

A Chapter 7 lawyer is a legal practitioner who works specifically with those in financial crisis. Although this attorney went through the same kind of law school and training as others, he specifically focused on the bankruptcy code as he graduated from school. Bankruptcy has long been a big problem for many companies, establishments and individuals. The general view for this situation is when the company, establishment or individual fails to meet the financial demands that were set up in the beginning. The basic concept is the actual liquidation of the assets, properties and other belongings of the company, establishment or individual.

Companies

When a business files for bankruptcy through a chapter 7 lawyer, there are due processes that need to be put in place. The first being an automatic stay being declared on the debt collectors of the said company as soon as the attorney can file for this. This stay is a sort of time out that the court declares and it prevents any of the collectors from collecting, harassing or interaction with the company or individual in debt. A trustee is assigned by the court to oversee the general welfare of said company and to sell of what can be sold with the general agreement of the bankrupted company and the legal professional. After this, the trustee will then distribute the proceeds to the creditors. When this happens to a company, chunks of it may be sold off to other companies, if it is a large one, or the employees may lose their jobs in the process, if it is a relatively small business.

Individuals

Individuals who ask a chapter 7 lawyer for help regarding his or her financial woes will also go through a liquidation process. The attorney is responsible for fighting for exemptions with regards to properties and belongings of the person. These exemptions vary from state to state. The individual's credit report will reflect the bankruptcy for at least ten years. For individuals, credit counseling is a necessary step that the court may require from him or her. This helps the person deal with the backlash of filing for bankruptcy as well as how to manage finances better after the filing has gone through. This is something that the government has required for bankruptcy cases which usually affect an individual.

Attorney's Help

The chapter 7 lawyer will be of great help when it comes to explaining the intricacies of the bankruptcy code to the client. There are certain aspects to this code that may be confusing because of the exemptions that come with it. The legal professional will also make sure that all the necessary paperworks and requirements of the company or the individual are completed and ready for presentation to the court. He will also make sure which assets can be considered safe or which may be taken away to be liquidated. The attorney should advise and guide his clients well and soundly about what to do and what to declare in cases like these.