Bankruptcy Attorney

If you are considering filing for bankruptcy, whether is Chapter 7 (liquidation) or Chapters 11 & 13 (reorganization) you may want to seek the legal advice of from a bankruptcy attorney. Before you decide to make an appointment with a bankruptcy lawyer, you should know something about the different types of bankruptcy filings.

Chapter 7 Bankruptcy is known as the "liquidation" or "no asset" bankruptcy. Chapter 7 Bankruptcy is used for people that have minimal assets, minimal equity in a house, and a lot of debt. Chapter 7 Bankruptcy can give people a new start financially and can be useful for people that are having severe financial difficulty.

Chapter 7 Bankruptcy can help a majority of your unsecured debt. That unsecured debt can include credit cards, personal loans, medical bills, and judgments from vehicle accidents. Also, you can eliminate any outstanding balances if your house was foreclosed.

With Chapter 7 Bankruptcy you can usually keep all of your property while you eliminate your debt. The purpose of a bankruptcy attorney is to look at your financial situation and try to help you keep your vehicle, house and personal belongings while getting rid of your debt.

The debts that Chapter 7 Bankruptcy does not let you get rid of can include state and federal income taxes, student loans, criminal fines, personal injury or death cases, debts due to fraud, and embezzlement.

One of the first things to do if you are serious about filing for Chapter 7 Bankruptcy is to select a bankruptcy attorney and make an appointment. During your initial consultation, you will be asked several questions to determine if you qualify for Chapter 7 Bankruptcy. The bankruptcy attorney will review your income, assets, and debts. The bankruptcy lawyer will need to know about all of your assets to decide if you have any assets that are not exempt. A majority of Chapter 7 Bankruptcy cases are "no asset", which means there aren't any assets to distribute to creditors.

Chapter 11 Bankruptcy is essentially a reorganization process, usually for corporations or partnerships. Also, individuals that have debts that exceed the limits of Chapter 13, can also file Chapter 11 Bankruptcy. With Chapter 11, the debtor typically keeps their assets and continues to operate the business under the watch of the creditors committee and the court. The debtor prepares a reorganization plan, and if that plan is accepted by the majority of the creditors, the plan is confirmed by the court and that makes sure that both the debtor and creditors follow the terms of the repayment.

Chapter 13 Bankruptcy is a repayment plan for individuals that have regular income, unsecured debt less than $337,00 and secured debt less than 1 million dollars. The debtor keeps their property and makes regular payments to the trustee of the Chapter 13 Bankruptcy. Repayment can range from 1 percent to 100 percent depending on the income and what the debt consists of. Chapter 13 also provides a way for individuals to prevent repossessions and foreclosures while getting caught up on their secured debts. These types of situations can get very complex and that is why you should seek the assistance of a bankruptcy attorney.