Financial insolvency is something no individual, family or business entity ever wants to face. Hire a bankruptcy lawyer.
A bankruptcy lawyer is someone nobody hopes to work with,
yet if you or your business becomes financially insolvent, finding one couldn’t be more necessary.
Going bankrupt is not only emotionally unsettling, it is also a difficult, complicated and extremely frustrating process. Between the mountains of paperwork, specific deadlines to meet and numerous procedural requirements to adhere to, it can be extremely hard to stay on top of things. A big part of this is the fact that even the simplest parts of the process, such as which type of insolvency to declare, can be confusing and difficult to understand.
Declaring oneself or one’s company bankrupt is a federal matter that is also governed by various state statutes. Because of this, cases are filed in federal court and are governed by federal guidelines in many respects, but are also subject to individual states’ laws.
In general, a debtor declares him or herself bankrupt to be relieved of bad debt that cannot be paid. A bankruptcy lawyer can then help that person or company navigate through the process of restructuring or relieving that debt depending on the details of the individual case. Depending on your specific situation, there are different types of insolvency that you are eligible to declare, which is where an attorney can be most helpful.
An individual or corporation can declare itself bankrupt under one of six chapters of the federal code, which is specified at Title 11 of the United States Code. In every case, a bankruptcy lawyer is the person most qualified to determine which is most appropriate.
Chapter 7 involves standard liquidation of all assets belonging to a person or business. It is one of the most common forms declared in many standard cases and, while not simple by any stretch of the imagination, is typically among the quickest and easiest to navigate among the various chapters.
Chapter 9 is a municipal tool only and is used by cities and towns to resolve debt issues and other related financial difficulties.
Chapter 11 is defined mostly as a reorganization used most typically by businesses seeking relief from creditors while aiming to remain open. It often facilitates corporate reorganization and relief from debts without the liquidation of assets and a need to cease operations.
Chapter 12 enables rehabilitation specifically for farmers and fishermen, while 13 serves those individuals who have a steady source of income but still require relief from mounting debts. Chapter 15 is most typically utilized in international cases to help settle debts between foreign entities.
The most common forms are Chapters 7 and 13, which account for over 70 percent of all cases in the United States by most estimates. Nonetheless, it is always recommended to let a bankruptcy lawyer help you decide which avenue is best to pursue to help you find the relief you need.
