What Bankruptcy Attorneys Can Do for You During Bankruptcy
A bankruptcy attorney is a legal professional that represents a business in bankruptcy. Bankruptcy is the legal status of a person who declares his business or himself unable to repay any outstanding debts. Depending on the type of bankruptcy filed, you have the chance of meeting with a judge to determine your payment schedule and discharge your debts. Businesses can also declare bankruptcy, which could lead to the businesses closing or continuing with its operations with lower payments to the creditors.
You should note that you will be advised by a bankruptcy attorney from http://charlesabbottlaw.com/spring-hill-bankruptcy-lawyer.php on the kind of bankruptcy you should file. When it comes to businesses, they can file two types of bankruptcy. These two types are Chapter 11 and Chapter 7 bankruptcy. For clearing international debts, a business or an individual cam file under Chapter 15, which is less common. The municipal bankruptcy ensures that agencies of the state, such as cities, declare bankruptcy by filing under Chapter 9. If a business or an individual wants a clean slate, they should file under Chapter 7. As a result of filing under Chapter 7, businesses close their doors. Filing under Chapter 7 for individuals leads to the courts declaring them unable to pay their debts. By declaring bankruptcy, you will not affect some federal debts, which are such as student loans.
There is need for the bankruptcy attorney to provide proof of insufficient income when declaring bankruptcy, which cannot meet your needs. One who files under Chapter 7 faces the risk of losing most of their assets. You will not lose your residence or a primary vehicle under this, unless you have an auto loan and you cannot meet the vehicle payments or a home loan that you cannot pay. You must declare all of your assets during the process of filing under Chapter 7 bankruptcy. There is usually liquidation of assets such as collectibles, second houses and additional vehicles to pay the debts. Majority of those who file under Chapter 7 do not have much to lose, which is why they go for it. When a judge approves the filing of your bankruptcy, clearing of your debts happens and you get a clean slate.
Filing for Chapter 13 bankruptcy is suitable for those individuals with a lot of property and assets but their income cannot meet their debts. Restructuring of the debt happens, where there can be reduction of the debt to ensure that one retains their assets and makes reasonable payments. Your bankruptcy attorney will let you know that declaring bankruptcy can make a business or an individual suffer reductions in their credit score. Make sure that you work with the Spring Hill Bankruptcy Lawyer that will provide you with quality representation while making sure that the needs of your business are met.