People who are in debt and cannot find a way out have the opportunity, in most cases, to file for bankruptcy. This offers them solutions to their debt problems that can help them erase most or all of their debts so they can get their finances back on track. However, bankruptcy law can be confusing and hard to follow so chances are the person is going to want to hire a lawyer to help them.
The first step in declaring bankruptcy is to determine the person’s financial situation. Their lawyer is going to need to know exactly how much is owed, who it is owed to, and how much has already been paid toward the debt. They’re also going to need to know the person’s income. This helps them determine which type of bankruptcy is going to be the right one to file. The determination of which chapter to file under will also depend on whether or not the person owns a business and whether the business is going to be included in the bankruptcy proceedings.
The lawyer will then explain the bankruptcy process to the person, which differs based on the chapter they’re filing under. For chapter 7, the person is going to need to give any assets to a trustee who will sell them to pay off the debts. With chapter 13, the person is going to make monthly payments to repay the debts. The lawyer is also going to explain how long the process may take. Chapter 7 typically takes about 6 months while chapter 13 typically takes three to five years. Cases involving business are going to work a little bit differently, but the lawyer can explain the differences to the person.
If you’re in debt and you’re considering bankruptcy, you’re going to need to work with someone who understands bankruptcy law. You can get more information at website and find a lawyer who can help you. They’ll walk you through the entire process to make sure you understand what is happening and that you know what will happen next. If you have any questions before you start or while the bankruptcy is going, they’ll be able to answer them for you.
Connect with us with on Google+!
