Bankruptcy Lawyers
When you find yourself in the position of feeling that you need to declare bankruptcy, you are certainly facing a difficult time in your life. To find a bankruptcy lawyer is likely to be the single most powerful tool available to you as you make your way through the process of trying to get your financial life back under control. If you're like most people facing bankruptcy, you have more questions than information. Now is the time to pause and think carefully about what you are facing. First you must understand the decisions ahead as they affect you personally, and then you must prepare to deal with the specific legal steps that will follow.
Perhaps of equal importance, your bankruptcy lawyer will make sure that the process occurs in a dispassionate manner. They will not allow the emotional issues that will arise in such a difficult situation to interfere with their primary task, which is to get the best possible outcome for you.
A local attorney should offer a free initial consultation to, at minimum, give you basic guidance as to the issues that must be deal with. Your attorney can help you understand local and state laws that may prove to be pertinent to your efforts.
Your bankruptcy lawyer should be chosen carefully. Try to get a referral from a reliable source and follow through by checking into your prospective attorney's track record and reputation. Large firms will in general cost more than smaller firms, but might be expected to offer a higher level of service. Try to consider all of your options while you search. A smaller private practice may provide a more personal approach.
Types of Bankruptcy
There are four common types of bankruptcy, called chapters, which you may seek. Which you may apply for is dependent upon your situation. Chapter 12 only applies to family owned farms, which are allowed to keep all assets and pay creditors out of future income while avoiding foreclosure. Chapter 11 is basically meant for corporations who will try to pay their way out of debt, but must do so under the strict oversight of the courts and creditor committees. Most people will fall under either chapter 7 or chapter 13. Chapter 13 allows you to continue with payments against your debts so long as you have income and unsecured debts of less than $360,475, and secured debts of less than $1,081,400. You will be subject to the scrutiny of trustees, but will be allowed to maintain your assets and possessions. The most onerous is chapter 7, under which you must surrender all non exempt assets for court sale.
Any of these options will appear on your credit rating for up to 10 years. This is obviously a difficult hole to dig out of. The help of a qualified bankruptcy attorney is your best chance for minimizing this damage to your future efforts to rebuild your stable financial footing.
What's involved in a Bankruptcy Case?
A bankruptcy case may be more complex than you imagine. Every document that has any bearing on your exempt or non exempt assets, your income, and your outstanding secured and unsecured debts must be produced and will be taken into consideration by the court. In addition, while federal law is usually the guideline used, there are many situations where state law may take precedent and affect the outcome of the case. High-asset cases with complex financial issues may take even longer. The typical time sequence in your area and what you can expect as your bankruptcy case moves forward can be explained in detail by your local bankruptcy lawyer. |
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