If you are facing financial hardship, you may consider declaring yourself bankrupt. While this process may be an effective way to stop collection activities and get a fresh start, it's essential to remember that the procedure is complex. You have to ensure you file the right type of bankruptcy and follow the required steps to succeed.
Doing all these tasks on your own may be difficult, mainly because you aren't a bankruptcy law expert. This is the reason you need a bankruptcy attorney to guide you through the complex maze of decisions, bankruptcy filing procedures, and paperwork preparation.
How Can You Tell That You Need an Attorney?
Several signs may indicate it's time to seek the services of a commercial or consumer bankruptcy attorney. For instance, you will need an attorney if you cannot pay your bills, have bounced checks, lack cash flow, and get constant calls from debt collectors and creditors. These bankruptcy law professionals will also come in handy if you don't know how to deal with the piling debt or need to be represented in court.
What Kind of Bankruptcy Attorney Should You Get?
If you have a personal financial crisis and can't pay debts over time, you can get a bankruptcy attorney to help you declare Chapter 7 bankruptcy. This option allows you to have a fresh start in return for certain personal assets. If you can repay the debt and need more time, get a Chapter 13 bankruptcy attorney. They will reorganize your debts and even discuss the repayment plan with your creditors.
If your business is in debt, then you will need to choose a Chapter 11 bankruptcy attorney. The expert will ensure you get time to restructure the company operations and reorganize debts to repay later. But, if you have no option but to close the business, you'll have to get a Chapter 7 bankruptcy attorney so the company can be handed to creditors to clear the debts.
What Should You Expect from Your Bankruptcy Attorney?
When working with a liquidation attorney, the results you get will be determined by the kind of bankruptcy you file. The debts can be erased, reduced, or reorganized so that you can make repayments whenever you are ready. Most creditors prefer getting a part of their money back compared to getting nothing. This is the reason some are willing to discount the total amount you owe and even wait.
Note that you may lose your company if you file for commercial bankruptcy and some assets if you file for consumer bankruptcy. The good news is that your bankruptcy attorney will evaluate your case and recommend the best course of action.