Bankruptcy Lawyer Denver Co To-do's
Bankruptcy is claim made by a person or an organization when it can no longer repay the debts it owes to the creditors. In this period, an estate will be created and a trustee is appointed to oversee the administration of the case. The debtor will be allowed to rearrange and rebuild his financial footing depending on the type of bankruptcy filed in a bankruptcy court.
Bankruptcy Petitions Available for Individuals or Organization
There are 3 types of bankruptcy protections which an individual or organization can file when it can no longer repay debts.
Chapter 7
Chapter 7 is known as “straight bankruptcy.” This petition is available to both individuals and businesses. In this petition, the assets are gathered and liquidated. The proceeds of the sale will be paid to the creditors. For businesses, the operations will cease or continue depending on the trustee. The trustee will continue to oversee the business affairs in preparation for the liquidation of assets. When the assets are accounted for, the trustee will sell them or it can look for new investors to take over the business.
The process is quite the same when applied to individuals but a person is allowed to keep certain properties or assets. On the other hand, non-exempt properties will be sold to pay the creditors. Unsecured debts will be discharged. However, discharge of unsecured debts is not absolute because some will remain like child and spousal support, taxes, and student loans to name a few.
Chapter 11
This petition is common in businesses and corporations since the essence of the chapter is business reorganization. Under chapter 11, the business will be allowed to keep its assets for a certain period while it formulates a plan to pay its creditors.
More HelpChapter 13
Chapter 13 is a reorganization plan similar to chapter 11 available for businesses but in this petition, income-receiving debtors will be allowed rehabilitation as long as they fulfill a court-approved plan. In this petition, a portion of your wage will be garnished through the employer and paid to the chapter 13 Trustee who in return will administer a plan to pay your creditors.
Dealing with creditors is really bothersome and inconvenient especially when they we can no longer fulfill our duties to them. We can lose our home, cars, and other properties at any moment because creditors will be after our assets when we can no longer pay our debts. Fortunately, we can always file for bankruptcy so we can rebuild our credit and get back on a healthy financial footing.
However, recent changes in the bankruptcy law have made the process a bit complicated and it will be impossible to handle the claim on our own. Luckily, we can always count on bankruptcy law experts when it comes to filing a protection when we can no longer satisfy our creditors.
Do I Need to Hire a Bankruptcy Law Attorney?
There is no law that requires us to have an attorney when filing for a bankruptcy but their expertise in the issue can provide us with valuable insights which we can use to deal with the case. As mentioned earlier, the U.S. Bankruptcy Law has been revised making it more difficult for debtors to file for bankruptcy in general. This is where bankruptcy law experts come in. their expertise on the matter will help us get out of the situation in no time. They will present us with options that is best for our situation. Meanwhile they will also teach us how to avoid common issues and concerns that usually lead to pitfalls.
Remember that the court is the sole body that will grant your petition but they can dismiss your claim if the court finds it insufficient. A mistake is expected if we do not have sufficient knowledge about filing for bankruptcy which is why consultation from an expert is very valuable in this phase.
What to Look for in a Bankruptcy Law Attorney
Bankruptcy petitions can protect our assets during financial struggle. To make the petition effective we should seek legal advice from bankruptcy lawyers. Of course you have to search for a reputable lawyer, one who has handled many bankruptcy cases in the past to ensure that your claim will be granted by the court. Meanwhile, it is also important that the expert has a good work ethics. Filing a bankruptcy petition takes time which is why it is important that you will be comfortable working with the said lawyer.