A bankruptcy lawyer is your best legal advocate when filing for bankruptcy. In a bankruptcy proceeding, a bankruptcy lawyer represents you as the most important stakeholder. He will make sure that the laws governing the filing of bankruptcy are followed, and that all the documents required by the bankruptcy court are appropriately filed. The bankruptcy lawyer may also negotiate with the creditors for a more affordable repayment plan or resolution of other debts. If such resolutions cannot be reached, he may petition to the court for an additional hearing on your behalf.
There are certain basic procedures that must be followed when filing for bankruptcy. An experienced bankruptcy attorney will help you understand and follow these procedures. He may even suggest creative solutions to avoid bankruptcy. For example, some people who are facing financial difficulties may be able to continue paying their mortgages by selling part of their homes to qualify for a loan workout. The bankruptcy court will determine if such a plan is advisable and will either approve it or deny it.
Before filing for bankruptcy, it is important to investigate the various chapters that are available under the law. Different chapters have different requirements and may affect your filing and the way it is handled by the bankruptcy court. It is also important to keep in mind the impact filing will have on your credit rating. If it will negatively affect it, you should probably consider different options before filing for bankruptcy.
There are three types of bankruptcy that you can choose from, trust, installment and debtor’s voluntary agreement (DVAs). Trust is the most common bankruptcy option available in a bankruptcy proceeding. As the name implies, a trust will be established in which the trustee acts as the conservator of assets belonging to the debtor. Beneficiaries will list their name, address, the amount they owe to the bankruptcy trustee, and the trustee’s phone number. Installment bankruptcy is also similar to a trust. However, instead of the beneficiaries paying into the bankruptcy, they may pay the entire amount owed to the bankruptcy trustee in installments and contribute towards an agreed distribution.
Choosing the right bankruptcy attorney will be crucial in determining the success of your procedure in bankruptcy. While you may rely on what the bankruptcy court will decide, your bankruptcy attorney can advise you on the options available to you. He or she can also help you decide whether it is better to file voluntarily, hire an attorney, or file with the bankruptcy court using the detailed list provided by the law.
Hiring a bankruptcy lawyer can be helpful in determining the best procedure in bankruptcy for your situation. Although the bankruptcy lawyer will make the final decision about filing, you will have a lot of input in the proceedings. You will also be responsible for making timely payments to the bankruptcy court and the trustee. A good bankruptcy lawyer can ensure that your procedure in bankruptcy is handled efficiently and will result in the best outcome for your financial situation.