Bankruptcy is a heart-breaking process, a dark tornado that can often tear through communities, bringing about financial ruin and the collapse of many businesses.
The biggest concern of those facing insolvency is whether they can even afford an attorney. The problem is that you’ll still have to pay certain filling costs if you go pro se and then there’s the sheer volume of paperwork and potential risks due to mistakes. Do you want to get lost in a legal wormhole?
Why You May Need the Support of a Bankruptcy Attorney
Bankruptcy is on a sliding scale and of course, varies in its severity. It’s not always a Monopoly case of giving back everything you own, there’s several different approaches and measures, all of which a bankruptcy attorney can talk you through.
If you sinking under piles of bills, unsure how to handle increasing debts, receiving constant calls from creditors or having people telling you that your cheques are bouncing, it’s probably time to seek professional help.
No one expects you to go through anything alone, you don’t appear more financially astute doing everything yourself. The procedures are lengthy and complex and you’ll have enough on your plate worrying about your assets.
Know What Help You Need- The Bankruptcy Chapters
Typically there are two main categories of bankruptcy- commercial and consumer. Various chapters then outline the nature of the insolvency and aim to fix it.
The most common chapters are 7,11 and 13:
Chapter 7- known as the liquidation code and essentially, it involves the sale of a debtor’s non-exempt property and the proceeds go to the creditors. In business terms, you’d have to shut up shop and hand it to the creditor in return for a cleared debt.
Chapter 11- allows for adjustment of debts and lengthens the time for repayment. In a corporate case, it could mean a complete reorganization of the debt.
Chapter 13- similar to 11, this one lets individuals restructure their debt, have longer to pay it back or you can even arrange and negotiate a repayment plan with the creditors.
How To Find The Right Attorney for You
Everyone vaguely knows an attorney, whether it’s the guy with the pitch on the radio, the lady in the sharp suit off the TV or your mum’s best friend’s neighbor. Regardless, you ought to investigate and find the best attorney for your particular situation. Consider your income as you may be able to pursue pro bono or at least get a cheaper service. Online chat tools are great on certain websites, you can give some basic details of your debt and your zip code and they can provide you with some details of appropriate lawyers in your area. You can even consult search engines, ask associates, friends or acquaintances if they have any trusted contacts.
On balance, this is a very big and important decision for you to make and of course, it will heavily depend on your circumstances. Nevertheless, think about the outcome and know that seeking professional assistance could result in a far better and smoother conclusion.