Business Plans…

Filing Bankruptcy and Why a Bankruptcy Attorney May be a Good Idea

The term bankruptcy means that an individual can not pay their debt. However it doesn’t have to be a person, it can be an organization or a business. When filing bankruptcy it keeps your debtors from taking away everything that you have and leaving you completely out in the cold. The individual or business will first file a petition, once the petition is filed everything that the person owns will be calculated according to its value. After the value of the belongings are added up, a certain amount is paid to the creditors. After available assets have been liquidated and the creditor has been paid, the debtor can now move on with his/her life. Otherwise, the creditors would be chasing the debtor forever. 

Filing bankruptcy can be a life saver. You just never know when your business is going to take a downward spiral, once that happens, it becomes difficult to pay your bills. Once you get behind on your bills, it’s hard to catch up, creditors can be merciless, tenacious and persistent. Which is why the ability to file bankruptcy exist. One thing many people do not know about filing bankruptcy is that it takes place in federal courts. The business will actually have to go before a judge. This judge is called a bankruptcy judge. This individual has the ability to determine whether or not the organization should even be able to file bankruptcy or not and to what degree of monies should be turned over to the creditor. It can be a pretty intense situation. In many cases a bankruptcy attorney may be needed. The attorney’s job is to make sure his/her client does not get taken advantaged of. He will ensure that the judge understands all of the factors associated when it comes to why, the company was not longer able to keep with their payments. 

Bankruptcy attorneys will retrieve the financial records of the individual. The records will include assets, expenses, income etc. After obtaining these records the lawyer will then advise the client on how to best go about the situation. Bankruptcy attorneys are trained when it comes to what forms need to be turned in and the amount of time the debtor has to turn the documents in. They are educated and have expertise in avoiding case dismissals due to missed deadlines, process delays and other situations. A bankruptcy law firm pelham al or a bankruptcy law firm in lafayette la if they have a license to practice, they will undoubtedly be highly skilled when it comes to getting the client all that they deserve and more. 

Remember, if you are considering filing for bankruptcy, when discussing it with your attorney be open minded. It could be that filing for bankruptcy is not the best alternative. Your attorney has been in the business for a while, so at least hear him out. Also, it will be determined which type of bankruptcy will be better to file. For example, with a Chapter 13 bankruptcy you will be allowed to keep your property, however you will have to enter a repayment plan that pays back the same amount of the property/assets etc. With the Chapter 7 bankruptcy, your creditors will not be allowed to pursue you for medical and credit card bills etc. This type of bankruptcy is mainly for persons of low income.

 

WgeeLinks

View more posts from this author

Leave a Reply

Your email address will not be published. Required fields are marked *