Bankruptcy is the formal method of debt relief allowing a debtor to relieve a portion or entire of his debt burden. It is a way to say a person has no means of paying off his debts. A debtor ‘s assets are either liquefied or reorganised, depending on the clause in which a bankruptcy case is filed. A business company may also face adverse economic conditions and file for bankruptcy.If you are looking for more tips, check out Bankruptcy lawyer near me.
Filing a bankruptcy is a pretty complex procedure, since it requires a lot of paperwork and many financial documents presented. A common man can find it difficult to cope with legal procedural complexities. The only option is to hir a bankruptcy lawyer. He’s the right person to lead you through that process, right from start to finish.
There are typically two forms of relief options in bankruptcy proceedings-Chapter 7 and Chapter 13.
Chapter 7-A trustee is named by the court for a debtor who has filed a petition under this chapter of bankruptcy. This method is also called ‘asset liquidation’ as this trustee liquidates some of the debtor’s assets for creditors to be paid out. A debtor, if any, gets to keep his estate free.
Chapter 13-This is the most common form of bankruptcy case chosen by most customers. It is often called a ‘income earner’ because it allows the debtor to convince the court that after a certain period of time , typically 3-5 years, he is in a position to pay off his debts. You can’t choose this option because you need a stable source of revenue to pay off your creditors.
Deciding to opt for bankruptcy options on your own is not advised. One should consult a competent bankruptcy lawyer who will help you understand the complexities.
When choosing a bankruptcy lawyer, the following things must be ensured:
* Experience is a crucial factor in selecting the right lawyer. Make sure that your lawyer has been doing business in the field for quite some time. It is best to look for a lawyer who has bankruptcy experience.
* Having references to speak for an attorney will help you get a fairer picture of a lawyer’s calibre. Speak with his previous clients and address relevant factors such as integrity , reliability and case handling capacity.
* Conduct detailed review of the certifications obtained by the lawyer.
Be very vigilant when finding a lawyer on bankruptcy. Inhabitants of San Bernardino may think that Miller and Associates, PC seeks expert assistance.