The Value of Bankruptcy Law Firms
Bankruptcy laws help people and businesses that can no longer pay their creditors. They do this by setting up a structured liquidation of assets to pay their debts, or by creating a structured repayment plan. This is not just for individuals, it is also in place to help protect businesses. This is accomplished by providing an outlet for organized distributions to a business’ creditors through structured reorganization, or liquidation of the company.
Why Would I Need Bankruptcy Attorneys Representing Me?
When you seek out assistance from a bankruptcy law firm, you are getting the expertise from the bankruptcy attorneys housed within. It may seem counterintuitive to pay bankruptcy attorneys fees when you are already filing; however, a bankruptcy law firm can save you from having to pay back a significant portion of debt that you may have missed on your own. Here are a few ways that bankruptcy attorneys can help:
- Determine if you actually qualify for bankruptcy
- Help you decide what type of bankruptcy would be best for you or your business to file
- Help you change your bankruptcy filing if you need to adjust it
- Prepare all paperwork associated with the bankruptcy filing
- Meet with creditors on any and all terms
- Act as your representative when filing with the courts
- Ensure you understand all terms associated with your bankruptcy filing, nothing will remain hidden to you in legal terms
You will want the best bankruptcy attorney possible working on your case to ensure everything runs as smoothly as possible. There are real consequences to not using a qualified bankruptcy law firm as well. If you try to handle the process on your own, you will be inundated with paperwork. If you make a mistake, it can mean your entire case is dismissed, and you may have to wait to file again. This could put you in a real bind. Do it right the first time by hiring bankruptcy attorneys.
What is the Difference in the Types of Bankruptcy Filed? Does it Really Matter?
Chapter 7 is the most common form of bankruptcy. This is essentially liquidation. That means that all non-exempt assets held by the person in debt must be sold off so that those debts can be repaid. Repayment is to be made to the fullest extent possible. Most people or organizations can file for this type of debt resolution. In fact, individuals, corporations and partnerships are all eligible to file for Chapter 7 bankruptcies if desired. One benefit of this type is that any part of the debt that can’t be repaid through liquidation and sale of assets is discharged. A Chapter 7 bankruptcy attorney can help you discharge as much debt as possible.
Chapter 11 is the most complex filing, and the one that most businesses file. In a Chapter 11 bankruptcy filing, the debtor and business continues to function. They are able to maintain ownership of all their assets,. This is for reorganization and restructuring the business. The plan is designed to come up with a plan to pay off creditors. Your bankruptcy attorneys can help you come up with the best reorganization plan possible.
Chapter 12 is only for family farm owners and family owned fishing companies. The debtor still owns and controls his assets and works out a repayment plan with the creditors. Chapter 13 is exactly like Chapter 11, but for the small farm and fishing entities.
Your bankruptcy attorney can help you decide which type is best for yourself or your business.
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