Finding A Chapter 7 Attorney
With toady's struggling economy, there are many people who struggle to remain financially responsible and independent. Unfortunatley, most of the population is one missed paycheck away from disaster.
While it it possible to remain financially responsible,
despite the tough economy, there will be certain circumstances that will force some to file for bankruptcy. There are two main categories of bankruptcy, and knowing the differences can help make the bankruptcy process a little easier. A Chapter 7 can help you navigate the bankruptcy process and decide which bankruptcy filiing is best for your situation.
Chaoter 7 and 13 are the two main bankruptcy filings in the United States. First, Chapter 7 bankruptcy requires the debtor to liquidate their assets, the proceeds of which are used to repay their creditors. The debtor is allowed to keep certain property, such as a home or vehicle, in addition to discharging certain legal debts. However, child support, student loans, and fines or restitution from criminal cases is not exempt and must be paid accordingly.
The debtor is allowed to obtain new credit, however, this new credit is not covered under a Chapter 7 filing. This option offers immediate relief of debts, although the bankruptcy filing will remain on the debtors cred report for 10 years. A chapter 13 bankruptcy offers debt rehabilitation, which allows the debtor to restructure their debts under the supervision of a federal bankruptcy court.
This allows the debtor to keep their assets, and even halt colelction activites such as foreclosures and contact from the debtor's creditors. However, the debtor is to remain under the supervision of the bankruptcy court for the duration of the proceedings. This means they must first seek permission from the bankruptcy court before obtaining any new credit. Furthermore, the debtor must outline a detailed repayment plan that must be approved by the court before they can halt any collection proceedings.
Creditors may force a debtor into Chapter 7 bankruptcy only. Therefore, there may be an instances where you do not have the option to file for bankruptcy. A chapter 7 attorney will be helpful in these situations because they can either stop the involuntary bankruptcy filing, or help to present the bankruptcy case before the court. Additonally, there have been some changes in bankruptcy laws that make it difficult to adhere to the requirements for filing for Chapter 7. Furthermore, the United States Trustee can challenge the proceedings as abusive, and having a Chapter 7 attorney who is familiar with this specific type of bankruptcy filing can avoid these types of issues.
It is not simple enough to just find the closest bankruptcy attorney and expect them to help you with a bankruptcy filing. There are many different categories of bankruptcy and many attorneys will focus only one one specific category. A Chapter 7 attorney will be familiar with the codes and laws specific to that type of filing. Even if you intend to file under a different category, the attorney can help you decide which one is truly best for your situation.
