A bankruptcy attorney may be necessary if you have a great deal of debt, assets and other complicated issues in your life. For example, because there is a great deal of documentation required that could be confusing for anyone, a bankruptcy attorney can help you in this area. They will have extensive knowledge in all the laws, rules, regulations, options and rights that pertain to your specific case.
Thousands of people file for bankruptcy each year, and in all likelihood, some of these people include your friends and neighbors. Why don't you know about it? Because filing for bankruptcy, while not without consequence, is a fairly private matter that does not have to be revealed to those you know and care about. The following list may be able to help you determine if filing for bankruptcy is right for you, as it outlines what to consider when filing:
Another thing that Chapter 13 bankruptcy affords to debtors is the opportunity to repay secured debts over a period. Oftentimes, the payment plans reduce the amount of the monthly payment that the debtor was paying. While Chapter 7 is the most popular option in bankruptcy, many people choose Chapter 13 because they feel a moral obligation to repay their debts.
The laws within the bankruptcy codes change over time. To ensure you are getting the best assistance with your bankruptcy procedure hire a bankruptcy attorney that specializes in the laws surrounding bankruptcy. Recent bankruptcy changes have made it more difficult to qualify for bankruptcy. This option is only considered for individuals that are struggling to keep up with their payments. Not everyone will qualify for debt relief under the new rules and regulations associated with chapter 7 and 13 bankruptcy.
When you file for bankruptcy, there are 2 different chapters that you can file: Chapter 7 or Chapter 13. A Chapter 7 bankruptcy is the type of bankruptcy that most people think of when they consider bankruptcy, but it is not necessarily the best option for everyone. In a Chapter 7 bankruptcy most of your debts can be forgiven. Some debts might not be able to be dismissed, such as student loan debt, alimony, and child support. In a Chapter 7 bankruptcy, your assets will often be liquidated as well in order to pay back what debts you can to your creditors. In a Chapter 13 bankruptcy, your debts aren't dismissed but a specific repayment plan will be set up. Things like the interest you owe and what your minimum payments are can be altered to ease your financial burden as you work on repaying your debts. The type of bankruptcy that is right for you will depend on your specific situation.
Unlike in the past, when filing for bankruptcy effectively meant paying 0% of the debt incurred, there are different facets to the matter today, with cases filed under certain chapters of the Code of Bankruptcy. There are 4 in total: chapters 7, 11, 12, and 13, with the extent of the financial situation dictating which is the most appropriate.