Get Bankruptcy Lawyer Advice

Economic recession has forced bankruptcy laws to change in support of the consumer. These laws are designed to help those who are genuinely struggling, and a bankruptcy lawyer is usually glad to give you a free consultation to guide you in this financial decision. He may even be able to help you avoid filing, saving time and money.

To begin, let go of the stigma that accompanies filing. This law is made to help honest, hardworking people who have undergone stressful and expensive life situations. Medical bills, divorce, job loss, and fraud are all reasons that bring clients to a bankruptcy lawyer, but even if none of these fit your situation, you still have a legal right to investigate the option and file a claim.

The most popular terms affiliated with filing are "Chapter 7" and "Chapter 13." Chapter 7 is the most commonly referred to and the one with the simplest rules. It allows you to begin with a clean slate. Creditors will not be allowed to call you any longer, as they will settle your debt through your bankruptcy lawyer. Whether or not you need to sell your home, car or other valued resource to liquidate assets differs among claims, but be prepared to face these difficult steps. Chapter 13, which will also be discussed with an attorney in a consultation, is a situation in which all of your bills and creditors agree to settle, they are paid off, and you will be responsible for a conquerable monthly payment. Which of these filings is the best choice for you can really only be determined by an attorney who works in the field.

Contrary to the indication of the names of these two types of situations, there are only three other kinds of bankruptcy: Chapter 9, Chapter 11, and Chapter 12. These three types are less for the typical struggling individual and specifically aimed at farmers, municipalities, and businesses. These typically will not apply to an individual, though if you have any kind of small business, it is not beyond possibility. An attorney will know immediately if you are in the 7 or 11 category, or one of the others.

If stress, trauma, or tragedy has set you back financially, and you have struggled for some time to catch up, it may be scary to take the first step, but you will soon see during your consultation that these laws are designed to help. You will immediately begin to feel relief from the pressure and strain of debt.