Why You Need A Bankruptcy Attorney

Bankruptcy can appear to be a long dark tunnel but there is light at the end of every tunnel. This is basically what an attorney or lawyer will show you in case you are in a situation of bankruptcy and do not know where to turn to for the right advice. Getting legally safe is always the best option and only a lawyer can help you do it.

Get to know the laws better r


Bankruptcy is the legal process in which a person or firm declares inability to pay debts. Any available assets are liquidated and the proceeds are distributed to creditors. A person or firm may be declared bankrupt under Chapter 7 of the federal bankruptcy code, which covers liquidation of the doubter's assets; Chapter 11, which covers reorganization of bankrupt businesses; or Chapter 13, which covers work-outs of debts by individuals. Upon a court declaration of bankruptcy, a person or firm surrenders assets to a court-appointed trustee, and is relieved from the payment of previous debts.

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was brought into effect in 2005, and is a law that overhauls bankruptcy rules to reduce filings. This introduced the Means Test which aims at streamlining the number of applicants to filing bankruptcy cases. Only those who qualify for filing can go about with the petition of bankruptcy.

If you are scared of going bankrupt and feel lost or out of the boat then the statistics in the year 2010 are what you need to know. After the BAPCPA was brought into effect, the number of cases filed is the highest this year with over 1.16 million consumers from January to September. A lot of this is attributed to the recession and unemployment created thereafter.

Filing a petition for bankruptcy can be a stressful job and the debt collectors make it worse by citing numbers that are higher than the actual ones. Whatever be the nature of your case, it will be aptly taken care of, once you opt for consultation with a good bankruptcy attorney in Linden, Elizabeth, and surrounding areas of New Jersey. In most cases, customers go for six-month counseling with their attorneys. A good consultation with a bankruptcy attorney will further help in gaining confidence.

Take the right step now and connect to the right bankruptcy attorney before it's too late!

In case you happen to need an somekeyword, Elizabeth and surrounding areas in New Jersey, log on to Njbankruptcy1.com.

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