Filing for bankruptcy is an unfortunate measure that some individuals take to clean their financial slate. When outstanding debt becomes too overwhelming for them to handle, they need assistance from a professional to start from scratch. However, they could put themselves in jeopardy if they aren’t careful.
Anxiety is normal for first-time filers. Their lack of knowledge could spur them to act before thinking and consider representing themselves in court. Yet, they could make their issue worse, resulting in a loss of assets or property. A lawyer could help them avoid such a circumstance.
What to Know About Bankruptcy Lawyers
Bankruptcy can be intimidating due to the complexity of the filing procedure. It entails a considerable quantity of documentation, which may severely complicate the process. A lawyer can advise you and keep you updated on the status of your case at all times. Also, they can help you choose one of the commonly filed chapters:
Chapter 11
While popular among corporations, Chapter 11 proposes a reorganization plan. Its purpose is to allow a debtor time to restructure their debts. Additionally, it helps keep their corporation active. Although filing for bankruptcy doesn’t signify an end, creditors have to be paid over a specific period. Not only can the process be expensive due to legal and filing fees, but it can also be lengthy.
Chapter 7
Chapter 7 is a typical form of bankruptcy filed among individual debtors. After the liquidation phase, the remaining debts are dismissed. A delinquent record is wiped clean or discharged, which gives a debtor a fresh start. Although both alternatives have tight restrictions, a debtor is granted protection they wouldn’t have without the option.
Chapter 13
A wage earner’s plan is significant to the reorganization process for Chapter 13. It requires a debtor to agree to pay off creditors in installments within a few years.
How to Contact a Lawyer for Representation
A professional who specializes in representing bankruptcy cases is suitable to defend you. Although you’re legally allowed to represent yourself (known as ‘pro se’), it isn’t wise to do so. The contact information on a law firm’s official website is an efficient method to use.
A rockville bankruptcy lawyer has the expertise to guide you. Planning ahead of time can help you find someone who is reliable and will stick by you throughout the process.
Overall, there is no shame in filing for bankruptcy to put your financial circumstance back into perspective. With the right legal professional, you can proceed responsibly and also work to relieve your debt.