Bankruptcy Attorney and The Options He Gives His Clients

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A bankruptcy attorney is a legal professional who deals with and helps people, companies and entities who may be in financial difficulty.
The state of being bankrupt is one in which the person, for example, has difficulty paying off debts that he or she has incurred.
These debts are usually held by creditors who will do many different things just to collect the payments from the person.
There are some people who will readily declare that they are in financial difficulty but there are also some who will wait until the very last minute before going to court to ask the judge to declare him or her bankrupt.
The bankruptcy attorney is the person to approach if you want to declare a state of financial difficulty.
While it is basically possible to do so without the help of any lawyer or representative, it is ultimately better to have someone who is fully aware of the implications of the law in this particular aspect.
The lawyer can argue for his client and represent the client before a judge.
He can also counsel the client with regards to the next best move to make.
In this the lawyer can guide the client towards which chapter to apply for in court.
Forms There are six actual chapters of financial crisis in the United States of America.
These chapters are labeled in numbers and include 7, 9, 11, 12 and 13.
These are the different types which are usually filed in court according to the circumstances and factors.
The two most common types for individuals are personal bankruptcies which are chapters 7 and 13.
If the bankruptcy attorney recommends Chapter 7, the person who owes the creditors needs to actually surrender property and other things of value to the court.
The court will appoint someone to take charge of these and liquidate them to pay off the debts of the client.
In many cases of Chapter 7, the lawyer who represents the individual in debt usually argues with the court regarding which items can be kept by his client.
13 is sometimes a better option for some people because they can usually keep their properties and assets but will need to promise to pay most of his future income to the people whom he owes money to.
This is applicable for individuals who have a stable job or small business which appears to be doing well.
One of the things that bring relief to the debtor is the automatic stay which falls automatically in place once the judge deems the individual as bankrupt.
This halts any collection or harassment from the creditors.
There are some exemptions in the state of financial ruin that the bankruptcy attorney might want to point out to the judge.
These exemptions are properties which are by definition needed or are not included in those that need to be liquidated in order to pay off debts.
Individuals are usually the ones who can take advantage of the exemptions because companies and other entities are not included in them.
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