Bankruptcy Attorneys
Bankruptcy attorneys provide advice to clients and handle the process of bankruptcies for those clients. They thoroughly understand all bankruptcy laws and can provide the correct legal methods for businesses or individuals to clear their debt by liquidating their assets and then distributing those assets to creditors. Debts can also be eliminated by a court-approved reorganization plan or other plans to pay back creditors over a specified period of time. In some bankruptcies, debt is completely eliminated without the need to pay the creditors at all. A good bankruptcy attorney will be able to offer advice on the best path for individuals or businesses to take regarding their debt. Bankruptcies are designed to offer a fresh start financially for those who have taken on more debt than they can pay back.
Types of Bankruptcies
A Chapter 7 bankruptcy is a complete liquidation of debt. Debtors turn assets that are not exempt from the bankruptcy over to a trustee who will turn those assets into cash and distribute it among creditors. At the end of a Chapter 7, individuals are completely free from debt.
A Chapter 9 bankruptcy is similar to a Chapter 11 for businesses but the Chapter 9 is only for municipalities. This includes cities and smaller towns, counties, villages, school districts and other municipal districts. It is a federal bankruptcy that allows for adjustment of debts for the debtor.
A Chapter 11 bankruptcy is a business or corporate bankruptcy and allows businesses in debt to continue to operate, giving them the funds to repay their creditors over time.
Chapter 12 bankruptcies are designed for farmers. They provide debt relief for farmers who experienced a bad crop season or simply got into more debt than they could readily get out of. Bankruptcy attorneys will advise farmers to file this bankruptcy and the farmers have up to three years to pay back the debts that are included.
A Chapter 13 is another individual bankruptcy that allows consumers with a regular annual income to pay back their debts over a three to five year period. During that time, no collection from creditors is allowed. A certain percentage of the debtor's income is withheld and sent to the bankruptcy trustee who then distributes payments to the creditors. A plan must be drawn up stating the intent of the debtor to pay back the debts and must be approved by the bankruptcy court prior to the filing.
When to Hire Bankruptcy Attorneys
If you feel that you are in over your head then bankruptcy attorneys may be able to help you. If you are a business owner or a consumer who is facing liens, wage garnishment, foreclosure, repossessions or lawsuits based on your inability to pay back your creditors then a good bankruptcy attorney can help you to file and walk you through the bankruptcy process. Once file a bankruptcy will stop foreclosures and other collection methods and give you time to pay back your debts without fear of losing your home or business.