An Overview Of Bankruptcy Cases

Shaky economic conditions often lead to a person's inability to pay back his debts. A legal declaration of this inability is referred to as 'bankruptcy'. It is considered to be the last resort for a person who cannot possibly pay back his outstanding debts.
Filing for a bankruptcy case can be tricky and one must consult a legal professional regarding this. Bankruptcy cases usually offer a person with several options. The most popular of them are discussed below:
Chapter 7 - This is the most common option that an individual prefers to file their case under. This allows a debtor to shed off his burden of debts completely. As a person applies for a chapter 7 code of bankruptcy, the court appoints a trustee who has the power to take charge of all the non-exempt assets of a debtor and evaluate the total value. Thereafter, the assets are liquidated and the involved creditors are paid off.
Chapter 13 - This option is not available to all. It requires a debtor to pay his debts after a time span of 3-5 years. That means that a debtor needs to have a proper source of income so that he can pay up after the given amount of time. Partnership businesses and corporations cannot avail this option. Once a debtor applies for this chapter of bankruptcy, he needs to send a repayment plan to the court and wait for approval.
It is unlikely for a common man to understand the implications of a bankruptcy case. He needs proper supervision and support to get through the whole course of legal action. A bankruptcy lawyer can be of great help in such a state. He is the right individual who can provide you with accurate guidance -from filling up the paper-works to settling on which option his client should opt for. It is his duty to alleviate his client's issues.
However, you must make sure that the lawyer you choose is proficient enough to handle your case. Your lawyer must have strong qualifications. Check the necessary certifications of a lawyer before appointing him. Experience is another important quality that your lawyer must have. An experienced lawyer ought to be well informed with all the aspects of legal issues. Also, try to get referrals from previous clients of a lawyer. This will help you to realize how talented
your lawyer is.

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