No one in this world ever wants to go through insolvency because it comes with a lot of baggage and troubles. When you file for bankruptcy you are required to get the services of a bankruptcy attorney so that you can effectively deal with the situation. Bankruptcy is defined as a legal process whereby a company or an individual is forced to liquidate his/her assets so as to be able to pay off his/her debts. Once you have filed for bankruptcy, the creditor files a petition for the debtor to complete payment of outstanding balance.
Once this happens, you will require the services of a bankruptcy attorney to help you with the legal implications that accompany bankruptcy. This is because bankruptcy is a state that is recognized by law and there are laws that govern the interaction between a creditor and debtor once bankruptcy has been declared. An experienced bankruptcy attorney is the best person to handle such cases because the attorney will be in a better position to get the best deal out of the case. You should therefore take some time to look for a good and experienced bankruptcy lawyer.
Bankruptcy is also known as insolvency and is classified in two ways. It is very important to have a bankruptcy attorney so that he/she can advise you on such details concerning the case. A good and experienced attorney should be able to give you details and information about the case and he/she should also be able to analyze bank statements, loan papers, debt notices, credit bills, and any other financial records. Once the attorney has analyzed the financial state of the bankrupt organization or individual and he/ she can advice you on the best way forward.
There are two main types of insolvency and they include:
Chapter 13: This type of insolvency should be well known to an experienced bankruptcy attorney. It involves filing for bankruptcy if the debtor has an income that is more than the median income of the state. The debtor will be given the option of a debt management program. This will give the debtor a clear payment guideline and enable him/her to clear his/her debt within a relatively short period of time. It will normally take between 3 to 5 years. The court appoints a trustee who collects the payment from the debtor and distributes it among the creditors. The trustee charges the debtor for the service.
Chapter 7: This type of bankruptcy is normally filed for when the debtor's income is not high and he is unable to pay his/her loans. This type of insolvency is the most common one and will require a bankruptcy attorney who is very experienced and knows everything about insolvency law. Liquidation of assets might be necessary so as to enable the debtor to pay off his/her debts. A trustee is appointed by the court to supervise the sale and liquidation of all of the debtors' non-exempt properties. The supervisor will also oversee all the property that the debtor possessed and will pay the creditors with the money acquired from the liquidation. There are some cases where the debtor is allowed to retain some of their assets.
Without an experienced bankruptcy attorney, you might have a very difficult time trying to understand the bankruptcy law and how you are supposed to interpret it. The knowledge that experienced attorneys bring to the table is irreplaceable and will determine the outcome of the case. Many lawyers will try and dupe you on their qualifications and experience but you should conduct thorough investigations so that you can ensure the attorney you decide to choose is very experienced and can deliver exactly what you are looking for. Experienced bankruptcy attorneys do not come cheap thus you will have to part with a substantial amount of money.
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