Some businesses and individuals struggle hard to pay creditors back. Even with the best of intentions and efforts, however, the process may become so overwhelming that there is no other choice but to file bankruptcy. Bankruptcy filings have become more prolific as recessions occur in one country after another. In the United States, this is a common occurrence that increases the demand for bankruptcy lawyers.
Bankruptcy is similar to being insolvent. This means that debts owed are greater than the sum of any assets, property, cash on hand or credit available with which to pay them.
The laws pertaining to this type of filing in the US give a debtor an option to discharge debts owed or repay them in part. There are different types of filings. The most common are a Chapter 7, Chapter 13 and, for businesses, a Chapter 11.
While a debtor can file his or her own petition, it is better to hire the help of a knowledgeable, responsible and discreet attorney that specializes in this area of law. The rules pertaining to various filing differ and they can be very complex. If a petition is filed incorrectly, it is subject to being dismissed, leaving the debtor with the same problem, he or she is working to solve which is being in overwhelming debt.
A US bankruptcy lawyer has a responsibility to each client to treat that client with fairness and care. A lawyer must adhere to a code of ethics as well during the filing and handling of the case. For a specific type of attorney, such as the one hired to take care of helping a client file a petition, that attorney must be knowledgeable about all aspects of different types of Chapter filings.
A debtor who is an individual would do well to work with an attorney that has proven him or herself as a professional that handles Chapter 7 or Chapter 13 cases. A professional or corporate debtor should work with Chapter 11 professionals with experience.
A lawyer must always use discretion when handling his or her client’s bankruptcy filing. Many attorneys have an understanding of the various personalities the district Trustees possess. They understand what their clients must disclose and how so that the Trustee does not dismiss the case for an error or a missed Chapter 13 payment. When they communicate with the Trustee or other party regarding their client cases, they remain confidential and respectful.
For business clients, an attorney has a bigger responsibility to ensure the business has disclosed all assets or any other forms of revenue to the bankruptcy court. Attorneys understand that in some cases, the business is better filing to liquidate itself instead of work out a pay plan. Again, this is one reason a business must find a bankruptcy lawyer with experience filing professional cases. If possible, they will want to find an attorney with experience working with companies of a similar size.
The attorney should offer sound legal advice during the entire proceeding. Some bankruptcies require lengthy pay plans of up to 60 months. During this period, the attorney or his or her paralegals should be able to address any concerns a client has or they should be able to answer any questions a client has promptly and patiently. A good lawyer will offer sound suggestions but will often not force a client to make a particular move unless the bankruptcy is threatened to be dismissed.
Take time to choose a bankruptcy lawyer with plenty of experience. If you are an individual, look for an attorney with experience handling individual filings. If you are part of a company, find an attorney with corporate bankruptcy experience. Visit http://www.congenilawfirm.com/ and get the best bankruptcy advice.