When are bankruptcy attorneys needed?

Misconceptions about bankruptcy prevent people from opting for it. Bankruptcy is a legally admitted inability to pay debts. The Bankruptcy Law has been written to rescue people who mourn their debts and help them start over. Bankruptcy is a legal course that aims to give equal conditions to both the debtor and the creditor. Bankruptcy attorneys help people decide their course of action if it is difficult or impossible for them to meet their obligations.

When are bankruptcy attorneys needed?

When a person’s debts are higher than their assets, bankruptcy attorneys help them get out of this financial hole. Filing for bankruptcy involves paying off or paying off a debt under the protection of a court. There are two types of bankruptcy filings:

• Chapter 7 Bankruptcy: This eliminates a person’s debt generally for a period of four months. Also called Direct Bankruptcy, it allows the person concerned to start over. Under the law, the assets of a person in the non-exempt category are sold or liquidated to pay off the unsecured debts. However, in most cases, people do not lose any property.
• Chapter 13 Bankruptcy: describes the consolidation of bankruptcy. In other words, the debt is reorganized. All debts are rolled over to one-time monthly payments. Under this type of bankruptcy, the debtor does not lose any of his assets. The court prevents creditors from approaching the debtor directly.

Choosing Bankruptcy Attorneys

A bankruptcy attorney is the right person to advise you on whether you should file for bankruptcy. The attorney will help you plan for bankruptcy, the costs involved, and the filing process. Most importantly, you will receive advice on how to rebuild your credit after filing for bankruptcy.

There are a lot of bankruptcy attorneys [http://www.malaiselawfirm.com/bankruptcy] And making the selection could be a time-consuming task. However, here are a few points to consider in selecting the perfect attorney for you:

• Experience – Be sure to contact experienced attorneys. These attorneys will know the law and will know how to position your case in the most favorable light.
• Specialization – Be sure to choose attorneys who specialize in this field. An attorney may have been in practice for several years, but what is important is the relevant experience.
• Comfort: It is important that you feel completely comfortable with the lawyer and can discuss things freely with him.
• Business size – While a large business always brings “credibility” to mind, small businesses can offer more personalized service and care. Also, small businesses have lower overheads and will charge less than large ones.