How Can A Bankruptcy Attorney Help You

Many established commercial houses have faced the situation of bankruptcy and have successfully recovered from such financial crisis with timely legal help. A situation of bankruptcy arises when a property or business house owner reaches a financial state wherein he cannot clear the financial debts that he owes to various creditors.

Although the occurrence of such a situation is pretty scary for the business house involved, most states have legal options made available to individuals or institutions that face this situation. All they need to do is go through the legal procedure of filing for bankruptcy. .


They will be granted an extra duration for repaying their loans and if they fail to repay their loans by the extra time, their assets will be liquidated under legal supervision. The United States Code clearly divides the condition of bankruptcy into six different approaches. The Bankruptcy Code that occurs under Title 11 of the United States Code has six chapters; viz. Chapter 7, 9, 11, 12, 13, and 15. Each chapter deals with the condition of bankruptcy in a different way.

The most commonly used chapters in these are Chapter 7 and Chapter 13. 65% of all US consumers file for Chapter 7. Under this chapter, the personal assets and property of an individual are put up for sale by order of court. The amount of money that is recovered from the sales is then distributed among the creditors to whom money is owed.

In case of personal bankruptcy filings, it is important to select the cases most suited for each chapter. Since most bankruptcy cases are filed under Chapter 7 or 13, the court requires the petitioner to take a 'Means Test'. The results of this test shows whether a particular case is fit to be filed under Chapter 7. If the case does not present all conditions of being filed under Chapter 7, then the petitioner is required to convert his or her case into a case under Chapter 13.

Correct filing of the case in appropriate chapter is possible only with the assistance of a bankruptcy attorney. Louisville KY residents and businesses operating in the area must look to hire a recognized bankruptcy attorney who has sufficient experience in handling cases in this field. An experienced attorney can counter the financial terms of the creditors and make them more amiable for the petitioner. Liquidation of assets like your private property can be avoided with the services of an experienced bankruptcy attorney.
somekeyword - To recover the dues from a person or institution gone bankrupt requires the help of a bankruptcy attorney. Louisville KY residents can now avail of the expert services of the Spalding & Spalding Law Office, who takes pride in offering first meeting and consultation entirely free of cost.

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