There are many reasons as to why a person may want to hire a Fort Lauderdale bankruptcy attorney. Bankruptcies can be very helpful in ending debt problems, stopping foreclosure and giving a person a fresh start. However, it must be handled correctly. This is the reason why it is important to hire an experienced lawyer to help you file the petition.
Chapter 7 is one of the most popular debt settlement options. In this legal option, a trustee is appointed to oversee the process of liquidating the assets of the debtor. Everything that is classified as non-exempt is sold so as to recover money owed to creditors. Almost every single taxpayer qualifies for this chapter. However, the court may reject a petition if the debtor has a reliable income source and assets that have very little monetary value.
Once a case has been filed with the appropriate court, creditors and suppliers will cease and desist from communicating with the debtor. Any physical contact, phone call, email or notice will be in breach of the law. Creditors will have to go through the court or the trustee when they need to communicate with the debtor. It is this legal protection that makes this legal option very attractive to debtors.
People who have a reliable job, but have unmanageable debt, can file for chapter 13 bankruptcy. The court and creditors will require the debtor to produce a sustainable repayment plan for the outstanding debt. This is the best option for creditors especially in cases where the debtor has few assets. This chapter makes it possible for creditors to get most of their money back.
When a business is not able to honor its debt obligations, suppliers and creditors may petition the court to declare the firm bankrupt so that they can get their money back through legal avenues. Alternatively, the firm can opt for voluntary bankruptcy through the chapter 11, which also comes with legal protection or temporary stay. When the firm starts to make losses or the management refuses to honor the terms of the repayment plan, a trustee may be appointed to initiate chapter 7 proceedings. This will lead to liquidation of business assets.
It is important to consult with a lawyer when looking for debt help. The attorney will help you choose the right remedy for your debt problems. When looking for a lawyer, you may want to consider giving strong consideration to experienced attorneys. Legal professionals who have handled numerous similar cases in the past should therefore be given priority.
It is important for debtors to understand the effect bankruptcies may have on their credit ratings. Since the entry will remain on their credit scorecard, the debtor will not be able to access low interest loan facilities from most lenders. This is a very important point to keep in mind.
A Fort Lauderdale bankruptcy attorney knows what the court requires. It is important that you hire the right professional to ensure that your case is approved by the court. The fees charged by an attorney is also an important factor to consider when looking for legal representation.
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