In the United States, there are many lawyers for different situations. There are personal injury lawyers, criminal lawyers, corporate lawyers, and bankruptcy lawyers. It is estimated that 530,000 American families file for bankruptcy. Americans file for bankruptcy for a variety of reasons. However, one reason has started to become more common throughout the United States. This reason is medical issues. In fact, unpaid medical bills affected around 2 million American people. With that said, these individuals need to file for bankruptcy. Additionally, bankruptcy is becoming widespread, and you should not feel shame if you have to file. Bankruptcy is essentially giving you a second chance. To begin, if you need to file for bankruptcy, or you’re considering filing, there is some information you should know.
Bankruptcy
There are different chapters of bankruptcy Americans can file. In fact, in Title 11 of the United States Code (which is the Federal Bankruptcy Code) there are four types of cases you can file. First, there is Chapter 7. Chapter 7 is liquidation. This is the most common form of bankruptcy. An individual person, business companies, and married individuals can file for this chapter. This chapter is to essentially help individuals with their financial situation. This chapter of bankruptcy takes about six months to complete.
Chapter 11 is another case you can file. This chapter is reorganization. Chapter 11 used to be designated for large corporations, but now individuals can file for this chapter as well. In this Chapter there is no limit in terms of the money owed by the debtor.
Chapter 12 and Chapter 13 are very similar. They are the last chapters you can file for bankruptcy. Chapter 12 is intended for family farmers, and Chapter 13 is intended for other people. In order to file for Chapter 13, you need to be an individual with a steady income. Once you file, you are assigned a trustee and that person will help you create a repayment plan for your debts. There were 333,626 American people who filed for a Chapter 13 bankruptcy in 2013.
It is important to note that each chapter of bankruptcy is to assist individuals when they need to find debt relief. Now that you know the different chapters of bankruptcy, it’s time to discuss hiring a bankruptcy attorney.
Benefits: Hiring A Bankruptcy Attorney
Mainly, hiring a bankruptcy attorney is an appropriate choice. Bankruptcy attorneys have the experience working with clients who need to file for bankruptcy. They also have the expertise on each bankruptcy chapter, so they will know which chapter is ideal for you to file. There are indeed many benefits of hiring a bankruptcy attorney.
Bankruptcy lawyers dissolve all uncertainty and fear you may have during the process of filing. With a bankruptcy lawyer, you will know what happens to your finances immediately. They place a lot of detail in the courtroom, and in their paperwork to ensure that you receive the best result. They care for their clients, and they make the process as stress free as possible.
If you’re worried about the cost of a bankruptcy attorney (especially if you’re filing for a Chapter 7 bankruptcy), you can find a low cost bankruptcy attorney. If you haven’t heard of these lawyers, a low cost bankruptcy attorney is present at a bankruptcy law firm. However, he or she is only present at some, not all law firms. A low cost bankruptcy attorney will give you a small, affordable fee to begin with. After that, the low cost bankruptcy attorney will allow you to pay the remaining fees in separate installments. These payment plans are created for your specific financial situation. A low cost bankruptcy attorney definitely has many benefits for when you’re filing.
Filing for bankruptcy can not only cause you to feel uncertain and fearful, as discussed perviously. Filing for bankruptcy can also be complicated. Hiring a bankruptcy attorney helps with this complicated process. After figuring out which chapter to file, you need to know how to interact with creditors, and how to pay back debt. Bankruptcy attorneys help and can ensure that no mistakes are made.
