Bankruptcy Attorney – Why Retaining a Lawyer is Important
Filing for bankruptcy is sometimes incredibly complicated, and filing for personal bankruptcy might make you feel like you are faced with a lot of confusing decisions. Most bankruptcy cases in the U.S. in 2014 were personal bankruptcies, which means that business bankruptcy is just not a common process.
Having a certified and experienced bankruptcy lawyer by your side is always the smartest decision you can make. If you’re considering filing for Chapter 7 or Chapter 13 bankruptcy here are some important points you should know about filing for bankruptcy:
- According to the United States Courts, every bankruptcy filing goes through a judicial district in the state where it was filed, and a federal bankruptcy case is subject to final decisions made by the designated U.S. bankruptcy judge.
- There are six types of bankruptcy cases in the U.S.: Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15. Chapter 7 and Chapter 13 sections apply to personal bankruptcy cases.
- Chapter 7 refers to a liquidation process where certain debts are erased entirely. Debtors can hold onto certain exempt property if it’s deemed essential for daily activities, but any other valuable assets will be confiscated by the court and used to pay off debts before anything is liquidated. Many people consider Chapter 7 to be the best option because it provides the fastest fix; it only takes around four to six months to complete.
- Chapter 13 bankruptcy doesn’t involve the liquidation of debts. It works on starting a reasonable repayment plan. This option is usually the ideal choice for people who have a steady paycheck and knows that they will be able to make payments on time.
- Within just a couple of weeks, you’ll begin receiving paperwork in the mail that will be used throughout the proceedings and which prove that you are unable to pay back your debts without help. The court will typically have separate discussions with the creditors to discuss reasonable negotiations and repayments, although it doesn’t hurt to have a bankruptcy attorney representing you when necessary.
- Even though the judge presiding over your case has a lot of power, you probably won’t discuss the case with the judge and in fact, it’s common for people to visit the courtroom usually only once during the entire filing process.
Remember that the process of filing for bankruptcy greatly depends on which Chapter you file under and on your individual case; and also try to remember that you never have to go through a bankruptcy case completely on your own.