In recent times, bankruptcy has emerged as a major financial issue. With the economic condition not being in a very good shape, many people are finding themselves caught up in debt traps. While declaring bankruptcy isn't an ideal solution for such financial woes, it can definitely put an end to constant harassment by creditors. A bankruptcy attorney can be of great help in this regard. If you are a resident of a good sized city, there will be a local Bankruptcy Attorney that can help you to get out of your debt trap.
Bankruptcy refers to the legal condition of an organization or a person who is not in a position to repay the debts to the creditors. Bankruptcy petition can be filed by the creditors, as well as the debtor him/herself. In recent times, bankruptcy has emerged as a way of avoiding harassment by the creditors, over the repayment of due debts.
When it comes to bankruptcy in United States, Chapter 7 happens to be one of the most frequent forms. It administers the liquidation process under bankruptcy laws in United States. As it is, people who reside, own property or have a business setup, in United States can file a bankruptcy petition in a court. An individual can keep certain exempted properties. The value of such property which may be claimed varies as per the rules and regulations of each state. The other properties, which are not covered as exempt may be sold by the trustee in charge for repaying the creditors. In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property.
Chapter 7 also covers bankruptcy issues of business organizations as well. So, if a business organization is in heavy debt and is not able to repay this debt, ten it can file a bankruptcy petition in court. In this case, the business is supposed to cease its operations until continued by an appointed Trustee. A Trustee as per Chapter 7 is appointed without delay, and is given powers related to the examination of the financial affairs of the business. A Trustee is also responsible to repay the creditors by selling the assets or properties of a business and using the proceeds there from.
However, bankruptcy proceedings can involve a lot of paperwork and long procedures. As someone considering declaring bankruptcy you do not necessarily have to hire an attorney to pursue your bankruptcy petition, hiring a Bankruptcy Attorney, could eventually prove to be of great help. He or she can take care of all the proceedings and paperwork. Moreover, he/she may also work towards, minimizing your losses as well.
However, before you hire a Bankruptcy Attorney, you should always see to it that you have checked his or her credentials properly. The difference between a seasoned attorney and one that is very new, could be huge. You want someone with the experience and expertise required to get you out of your current financial situation and on the road to a clean financial slate.
In general, most people filing, or interested in filing, bankruptcy as a small business owner would likely choose between Chapter 13 and Chapter 11. Chapter 7 bankruptcy is usually not a welcome option for the sole proprietor. The main reason is that Chapter 7 bankruptcy would likely require that the business be shut down. With that said, most business owners would prefer the relative simplicity and ease of a Chapter 13 case rather than the complexity of Chapter 11. Additionally, the higher cost of Chapter 11 usually creates an additional incentive to utilize the benefits of Chapter 13. However, for some business owners, particularly those looking to adjust secured debts, Chapter 11 may be the best option, even with the added cost. Lastly, the creation of the "small business" Chapter 11 can help those business owners with limited liabilities with a streamlined process.
Eligibility for each Chapter
Chapter 13
To be eligible to file for bankruptcy under Chapter 13, the individual must have "regular income." This requirement means that the debtor maintains sufficient income to make payments under the Chapter 13 plan. In addition, the Bankruptcy Code limits a Chapter 13 debtor to unsecured debts of $360,475 and secured debts of $1,081,400. Should the individual's debts fall outside this level, the debtor must file for Chapter 11. This debt level limitation is equally applicable in cases of joint (married) debtors.
Chapter 11
In general, any "person" who may be a debtor under Chapter 7 may also be a debtor under Chapter 11. Although most people think of the various, large corporate cases, Chapter 11 can also be used for small businesses, sole proprietorships, and individuals. A husband and wife may also be eligible to file a joint Chapter 11 petition.
Small Business Chapter 11
Recognizing that many small business owners do not qualify for Chapter 13, but want to be able to reorganize such small business debts, the Bankruptcy Code now allows for streamlined procedures in Chapter 11 for certain business entities. A small business, for Chapter 11 purposes, is a person or business engaged in commercial or business activities whose total debts do not exceed $2,343,300. This designation of a "small business" must be stated in the initial bankruptcy petition.
Benefits of Each Chapter
Chapter 13
Overall, Chapter 13 gives the individual debtors, including small business owners, the same opportunity to reorganize their debts that large business have under Chapter 11. However, this reorganization is completed through a less complex and expensive procedure. As with Chapters 7 and 11, all debtors that file for Chapter 13 bankruptcy are afforded the benefit of the automatic stay. This stay prevents any collection, foreclosure, lawsuit, or garnishment activity against the Chapter 13 debtor. While the Chapter 13 debtor must file a reorganization plan, it is only the debtor that may propose and create the debt repayment plan.
Also, in Chapter 13, like Chapter 11, the individual debtor maintains possession and control of any business interests. As such, the debtor has the exclusive right to sell, lease or otherwise use business assets, as long as such actions are in the normal course of business operations.
Unlike Chapter 11, in Chapter 13 a creditors' committee is not appointed. Also, the plan does not require that any creditor consent to the reorganization plan in Chapter 13.
Many individuals are attracted to Chapter 13, if not forced out of a Chapter 7 because of a failed means test, because of the ability to alter secured debt. For example, a car loan can be altered if the borrower is behind on the car payments to allow for (1) repayment of past payments owed and (2) restructuring the loan to conform to market value even when the loan balance far exceeds the true value of the car. Similarly, on home loans, Chapter 13 allows the debtor to make up past due payments over the term of the plan (3-5 years). However, in Chapter 13, like Chapter 11, a debtor cannot adjust the terms of a loan secured by the debtor's principal residence. As to non-primary-residence property, the Chapter 13 plan can restructure the debt so long as full payment is made within the plan period (3-5 years).
As to claims, unlike Chapter 11, a Chapter 13 debtor does not have to obtain approval from its creditors to approve a plan. The debtor simply has to provide a plan that the court approves.
Chapter 11
In Chapter 11, a sole proprietor is able to continue business operations, and run the business as previously done. The debtor is able to obtain financing, sell assets, lease property, and do all that the business normally would do, but for the bankruptcy. While Chapter 11 can be quite expensive due to the extensive reporting, filings, and other procedural matters involved, one real benefit unavailable to Chapters 7 and 13 debtors is that secured debt can be adjusted extensively. For example, a rental property that that has a principal balance far below the current market value (quite common in this economy) can be adjusted to conform to that market value. The payment terms do not have to fall within a 3-5 year plan window. Again, while Chapter 11 can be expensive, this simple ability to adjust non-primary-residence secured debt may be worth the additional expense.
Small Business Chapter 11
The benefits of the "small business" Chapter 11 is strictly procedural. Congress has simplified the procedure to allow for companies that are not Blockbuster or GM to partake in all the benefits of Chapter 11. The advantages include a simplified plan form for most courts, not requiring a committee of creditors in most cases, a shortened monthly operating report, and an extended exclusivity period to file a plan (180 days vs. 120 days).
Conclusion
In most bankruptcy cases where an individual business owner is considering whether to file a Chapter 13 or Chapter 11, the decision is clear. Chapter 13 will be most beneficial due to the increased costs and procedures of Chapter 11. However, in cases of a qualified "small business" with real property outside of a principal residence, the small business Chapter 11 may be a benefit that can save the business owner substantial money over the course of the bankruptcy and in the future.
If you have any further questions in small business bankruptcy, contact the Henshaw Law Office today at (408) 599-1305.
A frequently asked question that I receive (from my NJ clients) is whether a client can keep their home if they are filing a Chapter 7 or Chapter 13 Bankruptcy. The answer is: It depends
Whether a debtor can retain his/her residence in a bankruptcy depends on several factors. The factors may include the approximate value of the house, net value of the house, mortgages on the house, whether the debtor can afford future payment of the house. The gross value of the house really does not affect the ability to retain the house. Let's go through some examples:
Debtor owns a house worth $1 million:
It may appear that there would be no way a debtor can keep their house in bankruptcy. Suppose there is a mortgage balance of $950,000; that was to be sold and all closing costs were to be paid, such as real estate commissions, filing fees, legal fees, etc., there most likely would be nothing left over. In effect, this house has no value to creditors or the estate. Under that scenario the debtor would keep his/her $1 million provided he/she could maintain it.
Not everyone keeps their homes in bankruptcy. One must pay their mortgage payments to keep their house just as they would before they filed bankruptcy.
Debtor owns a house worth $80,000
The debtor has no mortgages on the house, debtor would lose that house in bankruptcy. The house would be sold to pay creditors. Why? There is equity in the house and this asset has value.
It should be noted that the above two examples are assuming that the debtor filed Chapter 7 bankruptcy (liquidation) as opposed to Chapter 13 bankruptcy (reorganization). It is presumed that the federal bankruptcy exemptions are being utilized versus the state exemptions.
In Chapter 13 reorganization, as far as keeping your house, the general rule is this: If you can afford to keep your house, you may keep it. There are exceptions to this and always exceptions to the exceptions, but this is the general rule. Conceptually, if you can afford to pay for the equity of your home out of future income, you will be able to keep your home.
For example, it is determined that the debtors house has a net value after closing costs, etc., has a value of $50,000. That is the amount that if the debtor's home was sold for this amount, the creditors would get approximately $50,000. In Chapter 13 reorganization, the debtor is basically saying to the Court, Trustee and Creditors - If I sell my house you are only getting $50,000 so I will pay you the $50,000 with future income. A win-win for all. The creditors get the same amount they would get in a Chapter 7 liquidation and the debtor gets to keep their home.
The above examples are very general and are meant to explain concepts and analysis of what an attorney goes through with their clients to determine if it is feasible for a debtor to file bankruptcy and keep their home. There are many more variables and other factors that are equally important in this determination but I have limited the analysis to explain that it is possible to keep your home and file bankruptcy.
Bottom line is this: you do not want to make a determination yourself whether you can keep your home when filing for bankruptcy because frequently debtors will be incorrect in their assessment. You should always contact an attorney who specializes in bankruptcy who practices in your jurisdiction - the attorney is also best to advise you on whether you can keep your home in bankruptcy.
This analysis should only be used with the federal exemptions not the state exemptions - to determine which set of exemptions apply, you should contact an attorney who specializes in bankruptcy in your jurisdiction.
The numbers of bankruptcy cases that are filed are at an all time high. This is the situation all across the nation and many homeowners are continuously having to face the loss of their homes. Consequently, the federal government has come up with certain programs and plans and managed to change a few regulations in order to alleviate the sufferings of homeowners stuck in such demanding situations.
Under the newly designed bankruptcy reform guidelines, homeowners can file for bankruptcy to get out of debt and in certain cases, allowed to retain some parts of their property. Cases filed under the original Chapter 7 bankruptcy law allow homeowners to get rid of all their debts, but it does not allow them to keep their homes unless all the payments are made in total and in accordance with the original conditions of the preset mortgage agreement.
An additional workable alternative for the homeowners is opting and filing for Chapter 13 bankruptcy. In this situation, the payment plans, as specified by the bankruptcy court, allow homeowners to repay all their debts over a period of several years. However, in order to keep their property, all the payments must be made in full and on time. If the sum that needs to be paid every month is exceeding the amount that the debtor is to afford, the property still remains vulnerable to foreclosure.
One more for homeowners who are facing or can face foreclosure is a plan designed by the Federal Housing Administration department, known as Hope for Homeowners. This program has been specially created for the assistance of people and homeowners who are making an to bankruptcy.
If all the qualifying aspects are met and complied with, the applicants are given a 30-year fixed mortgage rate, characteristically at lower interest rates which are spread over longer periods of time. This normally tends to lower the monthly mortgage payment rate. The Hope for Homeowners program is a defined volunteer program for both the borrowers and lenders, and all the parties that are must fully agree to the terms and conditions of the Hope for Homeowners program in order to be considered as qualified.
The Hope for Homeowners program, included in the Bankruptcy Reform, has been since September 30, 2010 to all those homeowners who commenced their mortgages prior to January 1, 2008, have been living in the property, consider it as their primary place of residence and have paid all their monthly payments. The factors for qualification specifies that the mortgage payment must 31 percent of the household monthly income and the applicants must not have defaulted on any debts in the past.
There is no single winning solution for every homeowner's bankruptcy woes. Every requires a solution; however, with the reforms promulgated by the federal government, the options to an average homeowner have considerably increased. Most importantly, in many cases, the homeowner is able to retain his or her property, something that would have been without the aforementioned reforms.
Just like anything else in life, if you are planning a drastic change you should probably inform those who will be affected. The importance of keeping people informed is a requirement in some circumstances. A "letter of intent" is used in these situations. This letter informs companies or the public that future legal proceedings will occur.
Although it is not a legally binding document, it is related to legal actions that will take place in the near future. Letters of intent related to bankruptcy are required from those who choose to file. For many individuals who are facing financial hardships, bankruptcy is the best way to overcome these difficulties and make a fresh start with their finances.
A letter of intent should be sent to all creditors warning them of future legal proceedings. It is important for creditors to know when a debtor is going to file for bankruptcy, as it directly affects the manner in which they will be repaid as well as the time period in which they can expect to be repaid.
If you are filing for Chapter 7 bankruptcy, there is a chance that some of your possessions may need to be sold in order to repay creditors. Your letter intent should describe what assets of yours will be kept and which will be sold, as creditors will want to be informed of this information. These letters should be sent within 30 days of filing for bankruptcy. A lawyer is typically used to ensure that these letters get to all the right places and contain the proper, and correct, information.
Lawyers are a strange group of people with very different sensibilities and image of themselves than most ordinary people. In many ways they are like doctors and actors, as they are treated with such high regard because to the ordinary guy they seem to know a lot about a subject that is mostly foreign to the rest of us. We also seem to have this hidden fear of lawyers and believe that we can't go up against them because they are so much smarter than us and have such a big education and if we make them mad they will sue us and it will cost us a fortune while it will cost them nothing.
A lot of these fears are well founded, and lawyers in general have an arrogance about them that reflects these fears. But, nobody can run from the truth and it is important that if you engage a lawyer and they do the wrong thing, you need to have the confidence and conviction to get justice for yourself and your cause.
If you hire a bankruptcy lawyer and he or she fails to perform for you yet still collects his fees, there is nothing wrong with asking for some or all of your fees to be returned. If the lawyer refuses, there are many things you can do to fight back.
You can file a complaint with the State Bar Association and other local oversight organizations as well as consumer protection agencies. You can also go on the Internet and write a review on any or all of the many review web sites such as CitySearch and others. Don't take is sitting down, fight for what's yours. One thing any business man especially lawyers need to protect is their reputation, and that is something you have some control over.
Don't be afraid if you make an honest but disparaging comment about a lawyer on review site that you will be sued and forced to remove it. These guys are not God's, they just think they are, so don't let them take advantage of you. Fight back if you don't get what you paid for.
It's hard enough dealing with all the garbage associated with filing bankruptcy, let alone having to pile on a bad experience with a lawyer. You will have only yourself to blame though if you don't do your homework and find out everything you can about the lawyer before you hire him. Also, you will have only yourself to blame if that lawyer screws you and you don't do anything about it.
If you had lost your job or your business, and are overwhelmed by your financial obligations, bankruptcy may be the right option for you. Filing for bankruptcy will allow you to financially start all over. However, if you decide to file for bankruptcy, you should really consider checking bankruptcy law practices and choosing a good personal bankruptcy lawyer who specializes in the field.
Although lawyers who have a vast experience in general law maybe able to help, you will be in more competent hands if you choose a personal bankruptcy lawyer. This is simply because the new bankruptcy law has become more complicated than before that someone who specializes in it will be able to guide you more properly. Even lawyers have to keep themselves abreast with the developments in the law. The provisions in the law are constantly being reviewed and amended that you will benefit more if you chose a law office that specifically deals with bankruptcy.
Law offices are plenty and you could simply take your pick of the best law firm to represent you. However, if you work with a bankruptcy lawyer, your consultancy sessions will benefit you more rather than if you work with a general lawyer. You can optimize your sessions because the lawyer you will be talking to has more expertise on the subject.
Every case of bankruptcy is unique because of the varying circumstances that surround each case. The first question that you would want to find answer to is whether bankruptcy is the right option for you. Of course, if you ask your lawyer if bankruptcy is the right move for you, he would most probably say it is. After all, he gets paid if you do file for bankruptcy.
It will most probably be a biased opinion. That's why if you really want a more objective assessment of your situation, you should just pay your lawyer his hourly rate the first time you visit his office for consultation. This will most likely make him give you a balanced, more objective opinion about your case.
You may be worried that because of your current financial situation, you should just file for bankruptcy yourself and not hire a lawyer anymore. Not only will it take you longer to file for yourself, but also, without a competent bankruptcy lawyer, you may just get frustrated with the amount of work that you need to do.
By consulting a good personal bankruptcy lawyer before filing, you may find out that bankruptcy is not the right move for you. That may save you more money than refusing to consult a lawyer in the first place.
Reaching out to a bankruptcy lawyer when you are in dire financial straits can be a great move to avert potential disaster. Sometimes difficult circumstances befall the best of people. In a world where our finances make available or unavailable many of the avenues for us in life, it is important that you have your money issues aligned. If for some reason you hit a rough patch in life and are forced into a situation where you cannot meet the demands of your creditors, you may be in need of legal assistance. There are many different reasons why you may be looking for some relief from your debtors. Issues of divorce, unemployment or even medical bills can force someone into a situation where they cannot meet their bills.
When the unexpected happens in your life and you are put into a stressful situation that you cannot financially handle, you may need the services of a bankruptcy lawyer. This type of legal assistant can offer you many different ways to help get you back on your financial feet and back in the viable capital world again. When you are looking to hire a legal representative, you want to find someone that you can trust and depend on. Make sure that you can build a rapport with the person you hire as it is very important that you are able to communicate your needs and concerns to this person effectively. Make sure also that this person or these persons are good listeners and make an effort to work toward your stated desires. If you do this, you can find the right representative for your needs.
Another consideration when choosing a bankruptcy lawyer is their experience in the field. Many lawyers offer years and years of experience in the relevant field and this allows them time to see many of the permutations of differing cases. This type of extensive experience gives them a good perspective on the overall goals you can try to set and the types of results that you can expect to achieve. Working with a professional with this type of hands-on experience can ease much of the stress involved with these types of financial situations. Finding the right lawyers to fight for your rights can help you get the financial results you require. Many professionals are even sure to offer other types of counseling services in addition to representation.
Finding an attorney who can help get you on your feet again is not as difficult as it may seem. The right bankruptcy lawyer may be just around the corner. This professional can help protect your home, your car, your wages and your business from creditors and debtors and help you get back on your feet. Working with a professional who has a lot of experience allows you insight into some of the details of the process you may not be familiar with. This can help you gain insight into the financial systems and allow you to get a good understand of your rights and your options. You are not alone out there. There are lawyers who can help you out of the predicament you have unexpectedly found yourself in. Finding the right one can be as easy as finding the one you can most reasonably speak with.
Finally, consider the overall services of the bankruptcy lawyer you hire, as well as of their law firm. The right professionals can help you file the right paperwork, get you through the trudges of legal documents, and help you get your credit back in line. Professionals with a lot of experience in financial law can give you insight into how to turn around your situation quickly and easily so you can get back to living the live you want to live. These professionals recognize the difficulty in making this type of decision and the other difficulties that follow from hard economic times. Whatever the cause of your economic strife, the right legal representation can help you tackle the problem effectively and efficiently and with an ease and convenience you cannot imagine. Keeping these key aspects of the service in mind when making your decision can insure success.
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Bankruptcy has held a negative connotation for years, being seen as the financial response of those too careless or thoughtless with their money. However, this idea of bankruptcy is far from reality. Especially with the economic crisis of the past several years, many individuals and couples have turned to bankruptcy as a real solution to their severe debt problems. According to some of the figures cited in Harvard law professor Elizabeth Warren's 2001 The Fragile Middle Class: Americans in Debt, bankruptcy is much more the result of tragic circumstances than personal faults.
As people deal with the problems that constantly bombard them, the high cost of living and the even higher cost of emergency events can prove too great for their personal finances to handle. According to Warren's statistics, fewer than 9 percent of all bankruptcy filers did not go through a divorce, lose a job, or need to pay for a medical emergency before filing. At least one-half of bankruptcy filers have been paying for some form of medical treatment. At least two-thirds of bankruptcy filers have recently lost a job.
The majority of those filing for bankruptcy were part of a couple at the time of filing. Although some of these couples may have filed prior to divorce to simplify the property division process, the general figures still stated that 44 percent of all filers were in a couple when filing. Single women made up 30 percent of filers, while single men only made up 26 percent.
For many, bankruptcy is the best way to overcome severe financial difficulties. To learn more about bankruptcy and how to file, contact a bankruptcy attorney today.
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Facing a mountain of debts is not an easy thing to do. For many people the challenges of dealing with their growing debts becomes too difficult for them to handle alone. After the loss of a job or the ensuring threat of foreclosure that a number of people are being faced with, the only viable option is to look for a Portland bankruptcy attorney.
Although the choice to file for bankruptcy is a difficult one to come to and many people struggle with their decision to hire a Portland bankruptcy attorney, the resulting freedom that comes from clearing away the crushing debts is something that cannot be described fully. Just recognizing that the hounding phone calls from creditors and collection agencies will stop is a relief for many people that have good intentions, but who are unable, not unwilling to pay their debts.
Having a clean financial slate that is cleared of the bad debts and mounting interest charges and late fees is a humbling experience that although is emotionally draining is well worth the chance to reset the finances and start again with no credit.
By learning from their mistakes, how to better manage their money, many individuals that file bankruptcy are able to find their financial footing and regain control of their money and spending habits. For those that have been forced into a corner by the never ending calls from their creditors the hiring of a Portland bankruptcy attorney allows them to find the relief that they need to reorganize their finances and come to terms with their losses.
One of the most terrifying things a person can go through is having to admit that they are destitute and will not be able to make ends meet. It is an embarrassing and upsetting situation that most people hope they will never have to face. Unfortunately, in these trying financial times, it is an increasing reality that many of us will have to contend with in the coming years. As terrible as bankruptcy is, it will be worse without a good attorney. Fortunately for those facing this type of financial crisis, there are a number of good tips for finding a good one.
As with many professions, there are licensing requirements for lawyers. Just as you would not rely on a doctor to treat you and your health if he did not have a medical license, you do not want a bankruptcy attorney that is not licensed by the state bar association. Be careful of people advertising that they are a "specialist" or an "expert" but do not state that they are a bankruptcy attorney. Many businesses use deceptive language to offer services that are not actual legal help. When in doubt, feel free to call the state bar and ask for references or complaints about your prospective lawyer.
In connection with finding a good licensed bankruptcy attorney, it is also important to check with various different people to see what options are available. There are a large number of nuanced variations to the law and not all of them are appropriate in every situation. For this reason, it is important to interview several potential counselors.
Two good sources for finding a reputable bankruptcy attorney are the ABI, the American Bankruptcy Institute as well as local legal aid services. Members of the ABI are highly qualified in their field and will have the most knowledge on the intricacies of the law. They will be able to provide information and services that are superior to those who are non-members. Many cities or regions also have legal aid organizations that help direct those in need to qualified and affordable representation. They will undoubtedly be an excellent source in securing a list of prospective lawyers.
This process will undoubtedly be unpleasant, but a good lawyer will be able to mitigate in a way that will be the most beneficial. Rather than liquidation, it will hopefully only be necessary to restructure, which will make a huge difference. Even if liquidation is the only option, there are many avenues to pursue that good representation can explore. It is most important to stay hopeful and abreast of what is going on with your filing. Participating as much as possible and keeping updated will both raise your spirits and help inform you of things you can do to prevent ever being in this situation again.
If you are considering declaring bankruptcy, you will need a lawyer to help you get started. Few people can successfully go this route on their own, so legal representation is crucial. Of course, finding a lawyer can be a difficult project in itself, but there are some guidelines to follow during the process.
One of the initial steps should be to ask for recommendations for a bankruptcy attorney. You probably know at least one person who has gone this route due to recent money issues, so ask friends and family who know your situation. They are likely to have a few words of wisdom for you, including the names of a few reputable lawyers who either helped them or someone they know. You can also ask other lawyers for referrals to those specializing in this field. For example, if you have used a personal injury lawyer after a car crash, you should contact that professional since he likely knows a few people who would be good for this job.
One guideline to keep in mind is to find someone who lives close to you, as you will likely have to meet with them several times when going over your case. Realize that some bankruptcies can go quickly, requiring only a few meetings during the space of a few months, but others can drag on for several months. This is why it is important to not only find someone near you, but also someone you are comfortable with.
Once you have a list of recommended lawyers that are located close to your house, you should find out more about each one. The best way to do so is by finding out whether they offer a free initial consultation. If so, you can meet with them to discuss your case without committing to them as a client first, which means that you can determine whether you feel comfortable with the bankruptcy attorney that you are considering. You may also be able to glean some insight into your case, such as whether it is worth pursuing.
Bankruptcy can be a difficult process to go through, but if you have some help in the form of quality legal representation, you are likely to have an easier time. Browsing local lawyers is the best way to get started on finding a good one near you. Meeting with each recommended bankruptcy attorney is usually the final step in choosing the perfect person to represent you.
You have rights when it comes to filing bankruptcy, but you may not realize that since many creditors will utilize shady practices in order to get you to pay what you owe. The sad part is that many people want to pay their bills, but life happens and things pop up that can get the most focused person off track when it comes to money. So discover why it's a good idea to hire a bankruptcy attorney before actually filing your situation with the courthouse.
Expertise
It's easy to say you need to hire a lawyer, but just like doctors, lawyers specialize in a variety of fields. So if you recently filed for financial ruin, it's essential that you contact a bankruptcy attorney that has the skill and expertise needed to help you achieve the best results. Also, a lawyer that concentrates in this particular type of law can inform you of your rights and what the next steps should be. When trying to narrow down the right lawyer, make sure they have been practicing specifically in the area of financial ruin for a number of years. Although there's nothing wrong with those lawyers fresh out of school, you want a professional with proven expertise to handle your case.
Peace of mind
Pretty much, the thought of going to the courthouse and filing for financial ruin can seem pretty cut and dry, actually there's a lot more to it than filling out papers. You will need to know your rights and it's hard to know what they are when you have shady creditors trying harassing you, or even putting out law suits against you in order to get their money. A good bankruptcy lawyer can help you sleep at night since you will have the peace of mind knowing that you have an expert working on your case.
Guidance
There are many things to consider when going through financial difficulty. If filing your issue with the courts is the best thing for you, then be sure to go about it the right way. Do not simply try to figure out all the issues on you own. I would be best to hire a bankruptcy lawyer that knows how to handle cases such as yours. He or she can hold your hand throughout every step of your case and in the end you'll know you did everything right when it comes to your situation.
Save you money
When having to file for financial ruin, there are many things you need to do. Yet, in order to ensure things run smoothly, you should hire a bankruptcy lawyer to help assist you with the issue. That's because this type of lawyer knows just what's needed when it comes to people who have to file financial ruin. Instead of trying to go it alone, it's best to get the advice of a pro. As a result, you won't have to spend money aimlessly, but will actually know your hard-earned cash will go toward something really useful.
If you are considering declaring bankruptcy, you will need a lawyer to help you get started. Few people can successfully go this route on their own, so legal representation is crucial. Of course, finding a lawyer can be a difficult project in itself, but there are some guidelines to follow during the process.
One of the initial steps should be to ask for recommendations for a bankruptcy attorney. You probably know at least one person who has gone this route due to recent money issues, so ask friends and family who know your situation. They are likely to have a few words of wisdom for you, including the names of a few reputable lawyers who either helped them or someone they know. You can also ask other lawyers for referrals to those specializing in this field. For example, if you have used a personal injury lawyer after a car crash, you should contact that professional since he likely knows a few people who would be good for this job.
One guideline to keep in mind is to find someone who lives close to you, as you will likely have to meet with them several times when going over your case. Realize that some bankruptcies can go quickly, requiring only a few meetings during the space of a few months, but others can drag on for several months. This is why it is important to not only find someone near you, but also someone you are comfortable with.
Once you have a list of recommended lawyers that are located close to your house, you should find out more about each one. The best way to do so is by finding out whether they offer a free initial consultation. If so, you can meet with them to discuss your case without committing to them as a client first, which means that you can determine whether you feel comfortable with the bankruptcy attorney that you are considering. You may also be able to glean some insight into your case, such as whether it is worth pursuing.
Bankruptcy can be a difficult process to go through, but if you have some help in the form of quality legal representation, you are likely to have an easier time. Browsing local lawyers is the best way to get started on finding a good one near you. Meeting with each recommended bankruptcy attorney is usually the final step in choosing the perfect person to represent you.
Chapter 11 bankruptcy serves as a way of business financial reorganization which normally lets businesses to keep functioning while they use a debt repayment schedule. Businesses that are allowed to continue to perform will produce revenue, preserve their employees, and then repay loan providers in time. Sales of the assets of the company to pay for obligations is a prospect, but it may not settle all the unpaid debt, and may push a company to close. More often than not, a method that allows a repayment plan which everybody agrees upon is more efficient.
A business filing Chapter 11 proceeding could be a company, sole proprietorship, or partnership. Although the those who own a corporation are its stockholders, the corporation is really a separate entity, which means that if a corporation files Chapter 11, the personal property that belong to stockholders will not be in jeopardy. Their investment may well be affected, all the same, if the worth of the stock diminishes as a result of the bankruptcy.
A Chapter 11 filing involving a sole proprietor, on the other hand, can impact unincorporated business and individual assets belonging to the owners. In a joint venture bankruptcy, the the owners' private assets could sometimes be sold off to repay collectors.
Sometimes, individuals could probably file a request for Chapter 11 bankruptcy. All the same, the majority of consumer debtors wind up requesting a Chapter 7 or 13 consumer bankruptcy. In addition, there are specific publicly vested agencies which will not be able to file for Chapter 11. Insurance providers, utility companies, and a number of conglomerates may not have the right of declaring Chapter 11 and will often need to redistribute assets to debt collectors by the use of a variety of applicable legal guidelines. In extreme cases, the federal government can become involved.
A majority of the effort needed for a Chapter 11 bankruptcy is distinguishing everything that constitutes property exceptions under the legislation. Consulting an attorney.
How do you choose the right bankruptcy attorney to help you file? It seems like such an evil trick. In order to discharge the most debt and keep the most assets, you have to spend more money to hire a lawyer to help you argue your case. While it may be tempting to go it alone, many people who attempt to file end up having their cases dismissed by the judge. Often times this is due to simple errors and a lack of specialist knowledge. If your case gets dismissed, it means you have to spend the time and money to file once again. While you wait, you'll just collect more debts, late fees, and continue to deal with the harassment of creditors. So before you discount hiring a bankruptcy attorney, you should be asking how you would find a good one.
Don't start your search by flipping open the phone book. There are better ways to weed out the inept from the truly skilled lawyers. Ask friends and family for references if possible. If you don't feel comfortable revealing your financial situation to those close to you, the Internet can be a great tool for finding client comments and reviews. Choose a few different attorneys to call and ask them several questions about their experience as well as basic recommendation for your case.
A good bankruptcy attorney will carefully review all of your finances before discussing the possibility of filing. In some cases, they may be able to help you find a better solution to your financial woes. A quality attorney also knows that reducing stress can help you make better decisions and see the situation more clearly, which is why they will immediately help you put an end to the constant stream of calls from bill collectors. This alone can give you some much needed time to evaluate your debts and see if you can construct a reasonable payment plan, or even strike a deal with individual creditors. Filing for bankruptcy should be your final option, not your first.
Being thorough is important when filing, which is why you want to choose a bankruptcy attorney who takes his time and carefully reviews all of your paperwork and documents. The more you cooperate the greater your chances of getting your debts dismissed. If you forget to list a debt or include another important item of information, you might end up in a very bad position. Be honest with your bankruptcy attorney and don't hide facts, as it will only hurt you in the end.
After all is said and done, a bankruptcy attorney shouldn't finish the case and leave you to fend for yourself. The best ones offer you sage advice and will help you set up some financial goals and planning for the future. You don't want to end up in the same position again in a few years, so it is important to learn from your mistakes and listen to the experts.
In today's stormy financial climate, many people have turned to a bankruptcy attorney for help with their financial struggles. When a person's money troubles have become overwhelming, it may make sense to wipe the slate clean and start again. No one wants to declare that they are bankrupt, but sometimes there's no other choice. More people are having financial trouble than ever before: with the current economic meltdown, it's no wonder that they are having problems. Individuals in every walk of life have run into snags due to the housing bubble, job slump, home equity loans called in early and credit card debt. Medical bills and divorce may also be paths to red ink. Read on to learn more about these common factors of bankruptcy.
- Housing bubble: Real estate's rapid rise in property values made expectations become skewed. Home prices were shooting up daily. Bidding wars were an every day occurrence. Many individuals began to see this boom as the new reality instead of the unprecedented bubble that it was. Many people staked their futures on the continued climb of real estate prices. Unfortunately, this was not to be the case. When house prices dropped, the decline triggered a domino effect which turned into foreclosures, job losses and banking failures.
- Job slump: With less discretionary income, consumer spending began to slow way down. Retail shops, restaurants and many other businesses began to feel the crunch. Lay-offs and downsizing have led to much financial difficulty.
- Home equity loans called in early: Since property values were on the constant rise, home equity loans were given out by the banks like candy. Consumers were able to tap their equity's flowing cash spigot at any whim. Unfortunately, when equity disappeared, so did these easy cash sources. Goodbye to home-sweet-piggy bank.
- Credit card debt: Credit cards have been an easy way to finance anything and everything a person could ever possibly want. Vacations, clothes, fancy dining - you name it and it was available by charging it. Revolving credit cards have slid many well-intentioned citizens into the muck. Compound interest and balances that grew until they eventually crushed the card-holder are common examples of burdens too big to carry.
- Medical bills: Many individuals don't have health insurance. When a large medical expense comes up, the uninsured are often dragged down into an unfortunate financial circumstance. A simple hospital procedure can cost thousands of dollars. Even a single occurrence of major illness can bankrupt a person.
- Divorce: A marital partnership is like a business partnership. Shared financial responsibilities and ownership of assets can be a good thing. When a divorce occurs, the financial business end of the relationship often takes a beating. One or both spouses may end up poorer by far. One more unfortunate side effect of divorce is that a couples' finances are often strained to the breaking point.
In today's economy, many families and individuals are having to make hard choices about surviving financially. If sleepless nights have become the norm and there seems no other way out, a bankruptcy attorney may be able to offer help. They'll help by going over your options with you and coming up with a clear plan to tackle the problem head-on. Even if things seem dark, remember: a fresh start is possible.
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There will come a point for many consumers when they will have to take a good and hard look at their finances, and then they will decide that they have to throw in the towel, and file for bankruptcy of some sort. There are several chapters of bankruptcy that a consumer can file for, but they all mean one thing; the consumer is in over their heads with debt, and the only way that they can get out from the mountain of debt, is to have their debts legally discharged. This means that the consumer will have to go before the courts to get their debt legally discharged. While some people might choose to represent themselves in the courts, it's to their advantage to hire a bankruptcy attorney to handle this huge financial step.
The bankruptcy attorney will be able to advice their client or clients as to the best chapter of bankruptcy to file. The process will be quite simple for the client, at least administratively. All they need to do, is to visit their chosen bankruptcy attorney. This attorney will then conduct what is known as a means test for the client. A means test is a barometer of sorts, which tells how much the client is able to pay on their debts, if at all. It will also reveal the annual earnings of the client. The attorney needs to know this, because then they will be able to steer their client or the clients in the right direction.
After a clear picture of the client's finances is assessed, the bankruptcy attorney will prescribe the correct type of bankruptcy, and then they will proceed to file the proper paperwork in court, on the behalf of the client. The client will either receive a total discharge of their debt, or they will be administered a re-payment schedule, depending upon the chapter of bankruptcy that was filed and ordered. Going through a bankruptcy is a very trying time, and many people will feel emotionally and mentally spent. Beyond this, they won't be privy to their legal rights when it comes to bankruptcy. The bankruptcy attorney will be privy to all of the information that the client needs to make a new start for themselves.
The bankruptcy attorney can not only help the client file the paperwork for bankruptcy, but this attorney can also assist their clients with their foreclosure proceedings. In many cases of personal financial ruin, when the client can't pay their personal debts, they won't be able to pay for their mortgage as well. In this case, the client will need to be made aware of the rights that they have to save their home. Debt and mortgage collectors will do their best to take advantage of the client, but the bankruptcy attorney can stop this from taking place.
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Bankruptcy is an option citizens of Virginia may consider when their debt is spinning out of control. Because these individuals never had to deal with such a complex financial solution before, they often first consult with a Richmond bankruptcy lawyer. During the consultation, the attorney may give them the following lawful advice:
1. Bankruptcy is a legal procedure in which it is stated that you are unable to pay all the money you owe your creditors. These proceedings will grant you a new financial start, and will also give you an opportunity to repay some of your creditors.
2. Your Richmond bankruptcy lawyer will confirm that you can stop foreclosure on your property through bankruptcy. It will give you a chance to catch up on the payments you have missed. Bankruptcy can also prevent that your car will be repossessed, your wages garnished, and that collection agencies are harassing you.
3. While offering some financial relief, bankruptcy will not cure all your money problems. Certain types of debt, such as mortgages and car loans, will not be forgiven. Bankruptcy will also not set you free from alimony payments, child support, certain taxes, student loans and criminal fines.
4. Filing for bankruptcy will remain on your credit report for up to ten years. It will not ruin your credit rating completely. Nevertheless, it will make it much harder to receive bank loans. By proving financial responsibility, you can rebuild your credit rating.
5. Bankruptcy petitions are public record in Virginia. However, your Richmond bankruptcy lawyer will point out that employers will generally not find out that you have filed for bankruptcy unless he/she is a creditor.
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