Bankruptcy Lawyers – Why Do You Need Them?

During tough economic times, an individual or a business company is often faced with the problem of being trapped by huge debts. A person files for bankruptcy when he has no other option left and cannot find any way to pay his creditors.

In fact, bankruptcy is the inability of an individual to pay their creditors. If an individual or business decides to file for bankruptcy, they should hire a good bankruptcy attorney. Understanding the legal ramifications of bankruptcy is not easy. Bankruptcy attorneys could give you a clear idea about the whole process.

The two most commonly preferred bankruptcy options are:

Chapter 7 – This form of debt relief gives the debtor the option of eliminating all of their debts by turning their non-exempt property over to the bankruptcy trustee (a person appointed by the court). The latter will convert the assets into cash and pay the creditors. The determination of exempt and non-exempt property varies from state to state. It is best to consult an attorney for details. This bankruptcy option is often called “asset liquidation.” This is useful for those who do not have any expensive assets.

Chapter 13 – This option allows the debtor to keep their property for themselves and pay off the debt over 3-5 years to pay their creditors. This option is also known as ‘reorganization bankruptcy’. Not everyone can opt for this option as it requires the debtor to pay a part of their debt and show that they are in a position to pay their remaining debts after the given period of time. The court will check if your income is enough to pay your creditors later.

Both options have their own eligibility criteria. Experienced bankruptcy attorneys will be able to analyze your particular case and decide which option is eligible for you. Always make sure that your attorney has enough qualifications in the field to give you expert guidance. Debt and asset regulations differ from state to state. Hiring a specialized attorney can help you understand the complexities. He will also help you complete legal paperwork and other formalities.

If you or your business are facing serious financial problems and are considering filing for bankruptcy, seek help from bankruptcy attorneys. Citizens of Henderson NV can contact Kupperlin-Law for expert legal assistance.