Nowadays, the economy seems to be in shambles. As a result, more and more people are having to file for bankruptcy. Unfortunately, bankruptcy is being forced upon people, as their creditors have sued them to get paid. As a result of this sad situation, the article will cover the fundamentals of bankruptcy, as well as why you should use a lawyer when filing bankruptcy.
At this point, any reasonable person would think it is ridiculous that they must hire a lawyer to file for bankruptcy. If you don't have money to pay your bills, how in the world are you going to pay a lawyer?
The fact is that under the new bankruptcy laws, you must use a lawyer when filing for bankruptcy, regardless of whether your want to use one or not. While this may seem unfair, it is the law and there is no way around it.
When it comes to actually filing for bankruptcy, there are several chapters that you can file under. However, the majority of people will file under either Chapter 7 or Chapter 13. The other chapters deal with small business, farmers, and other odds and ends.
People are usually most familiar with Chapter 7 bankruptcy. This is in essence where the court will sell off all of your assets. After the assets have been sold, the money gained from the sale is used to pay off your creditors. Any remaining debts are then discharged by the courts.
Chapter 13 bankruptcy is where the court carefully reviews your financial situation and then sets up a repayment plan to pay off your creditors. This repayment plan usually last for three years. If you stick to the repayment plan, any remaining debts are then discharged by the courts.
While bankruptcy may seem like panacea from your debts, there are still debts the court can not discharge. Very simply, a court can not discharge student loans or taxes. Even if you file for bankruptcy, you are still liable for these debts.
In conclusion, we have discussed why you need a lawyer, as well as some bankruptcy fundamentals. If you are considering filing for bankruptcy, we highly recommend you contact a lawyer today to assist you in making the best decision for your situation. - 31397
At this point, any reasonable person would think it is ridiculous that they must hire a lawyer to file for bankruptcy. If you don't have money to pay your bills, how in the world are you going to pay a lawyer?
The fact is that under the new bankruptcy laws, you must use a lawyer when filing for bankruptcy, regardless of whether your want to use one or not. While this may seem unfair, it is the law and there is no way around it.
When it comes to actually filing for bankruptcy, there are several chapters that you can file under. However, the majority of people will file under either Chapter 7 or Chapter 13. The other chapters deal with small business, farmers, and other odds and ends.
People are usually most familiar with Chapter 7 bankruptcy. This is in essence where the court will sell off all of your assets. After the assets have been sold, the money gained from the sale is used to pay off your creditors. Any remaining debts are then discharged by the courts.
Chapter 13 bankruptcy is where the court carefully reviews your financial situation and then sets up a repayment plan to pay off your creditors. This repayment plan usually last for three years. If you stick to the repayment plan, any remaining debts are then discharged by the courts.
While bankruptcy may seem like panacea from your debts, there are still debts the court can not discharge. Very simply, a court can not discharge student loans or taxes. Even if you file for bankruptcy, you are still liable for these debts.
In conclusion, we have discussed why you need a lawyer, as well as some bankruptcy fundamentals. If you are considering filing for bankruptcy, we highly recommend you contact a lawyer today to assist you in making the best decision for your situation. - 31397
About the Author:
The Dayton Attorney Guide was established to help people learn about the various facets of the law. These facets include information about wills and how to proceed in a Bankruptcy.
