July 20, 2024

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How a Bankruptcy Lawyer Can Help You Deal with Your Debts

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There can be certain situations in life when taking recourse to legal procedures can seem inevitable. While this can definitely happen if you are seeking legal redressal for something, it can also become a distinct possibility if you are in dire straits financially and have been thinking of declaring bankruptcy. Whether it is as an individual or on behalf of a business entity, declaring bankruptcy might be the last resort if you are in bad financial shape, have racked up a lot of debt that you cannot realistically pay off, and want to find a way to settle the matter using the right legal means. With the help of the right bankruptcy lawyer, you can try to find debt relief this way if you go about it the right way.

When it comes to declaring bankruptcy, there can be quite a few things that you would need to keep in mind. There can be different kinds of bankruptcy for different situations and you need to know exactly what would be applicable for your case. Knowing about the law and its finer points can definitely help, as can getting the services of the right bankruptcy attorney or bankruptcy law firm. With the help of skilled and experienced legal professionals and with the right knowledge and insight, you can definitely go about this the right way and get the kind of relief that you are seeking. Let us talk more in-depth about the nuances of the law and how you can go about this.

For personal requirements, there can be two different kinds of bankruptcy declarations that can come in handy when addressing two different situations. The more common kind, called Chapter 7 bankruptcy, is used mainly for debt discharge or debt relief. If you can show that your current income is not sufficient for you to be able to realistically pay off your debts, you can apply for a Chapter 7 bankruptcy with the help of the right bankruptcy lawyer. In this kind of bankruptcy, you can opt to pay off as much of your debts as you can or give up any owned property which can then be sold in order to pay off your debts. Any property that is exempt from this can be retained and all your debts can be paid off to the fullest extent possible, freeing you of any further responsibility.

In Chapter 13 bankruptcy, your bankruptcy lawyer will try to guide you towards creating a payment plan for your debts that is structured and realistic. The aim is not to entirely get rid of your debt, but to work out a payment plan that is achievable in reality keeping in mind your income and financial scope. This can involve reducing your monthly payments in order to spread the payments out over a longer duration of time while being as fair as possible to your creditors. Judges and trustees are assigned the task of watching over this plan and its progress so that the plan can stay fair to the creditors while also being reasonable and reachable on your part.

If you are looking to restructure the debt on behalf of a company or corporation, you can take advantage of Chapter 11 bankruptcy provisions. This has less to do with directly addressing the debt, selling of property, and all other processes associated with Chapter 7 bankruptcy. It has more to do with coming up with a restructured payment plan that can be used to stay fair to creditors while being realistic for your corporation to accomplish. The key is to get great legal help from the right bankruptcy lawyer. With the right skilled and experienced bankruptcy lawyer, you can get around these processes a lot easier, keep to the prescriptions and recommendations of the law, and have a much better chance of reaching a successful conclusion.

Declaring bankruptcy can be a final option for many. However, it can be a good way to deal with your debts in a reasonable way. There can be solutions for whatever situation you find yourself in and reach a way to deal with your debts in some way.