Bankruptcy is a legal proceeding involving a person or business that is unable to pay outstanding debts. Bankruptcy gives a person or business a chance to start fresh by dismissing debts that the person is unable to pay. Creditors can demand some repayment available for liquidation. One can file for bankruptcy if one realizes that it will take more than five years to pay one’s debts. The person himself can file the petition or one can hire a bankruptcy lawyer to look after the court formalities and understand your legal rights. The entire bankruptcy process takes nearly six months to complete. The person’s assets are sold to pay the debts. After the person is ‘declared’ bankrupt, he will be not be allowed any credit because bankruptcy will be on his credit file for the next six years. The creditors will write off his unsecured debts. Bankruptcy lasts for a year and financial restrictions will be present during this period. When the bankruptcy period is over, he will be ‘discharged’ from it and this allows him to make a fresh start.
A bankruptcy lawyer is a lawyer who specializes in bankruptcy. There are two types of bankruptcy lawyers, commercial and consumer. Commercial bankruptcy lawyers file for bankruptcy for one’s business. They help clear loans and requests time to restructure one’s business. Consumer bankruptcy lawyers files bankruptcy for a person or with the person’s spouse. They protect him and his spouse when going through bankruptcy and setting up payment plans. The lawyers help in protecting from creditors and clearing debts and loans. The lawyers, in short, help you understand your legal rights. There are many reasons why hiring a bankruptcy lawyer is the best option.
Bankruptcy lawyers know which bankruptcy option is apt for your situation. They are well-informed about what debts will be eliminated under each type of bankruptcy. They know how to file the bankruptcy petition and correctly list your assets according to the latest code changes. Any mistake can prevent you from filing again. Committing fraud in bankruptcy case can lead you behind bars. Lawyers are more experienced in this matter. Lawyers will be your legal representation in court. He is your legal voice for all the legal questions asked by the trustee. The lawyer handles all communication. This saves your time and money. According to bankruptcy rules, creditors cannot call you for paying debts, once you hire a bankruptcy lawyer. That means peace of mind. They are well- versed with all the bankruptcy laws, which can be very complicated for common people.
A bankruptcy is very stressful period in a person life. it has a negative impact on not only your credit reports but most importantly, on your morale. It is an extremely draining process. During this difficult situation, the bankruptcy lawyer can step in as a friend and advisor and provide comfort and guidance to the person. When you are already broke, shelling out money on a bankruptcy lawyer might seem a huge indulgence and impossibility for many. When weighing the mental and physical trauma involved, bankruptcy lawyers are really a blessing in disguise.