Bankruptcy is the legal process of relieving debts that allows a debtor to shed a territory or whole of his burdens of debts. It is a way of declaring that an individual has no possible way to pay off his debts. Depending on the chapter under which a bankruptcy case is filed, the assets of a debtor is either liquefied or reorganized. A business firm may also face difficult economic conditions and apply for a bankruptcy case.
Filing a bankruptcy is a pretty complicated process as it involves many paper-works and presentation of many financial documents. A common man may find it tough to cope up with the complexities of the legal proceedings. Hiring a bankruptcy lawyer is the best solution. He is the right person to guide you through the process, right from the beginning till the end.
Bankruptcy cases usually offer two types of relief options – Chapter 7 and Chapter 13.
Chapter 7 – The court appointments a trustee for a debtor who has filed a petition under this bankruptcy chapter. This option is also called 'liquidation of assets' as this trustee liquidates some of the debtor's assets to pay off the creditors. A debtor gets to keep his asset property, if any.
Chapter 13 – This is the most common type of bankruptcy case that most consumers prefer. It is also called 'wage earner' as it requires the debtor to secure the court that he is in a position to pay off his debts after a given period of time, usually 3-5 years. Everyone can not opt for this option as one needs to have a reliable source of income to pay off its creditors.
It is not advisable to decide on opting for bankruptcy options on one's own. A professional bankruptcy lawyer should be consulted who can make you understand the complications.
While choosing a bankruptcy lawyer, one needs to ensure the following points:
* Experience is an important factor when it comes to choosing a good lawyer. Make sure your lawyer has been dealing in the field for quite some time. It is advisable to opt for a lawyer who holds specialization in the field of bankruptcy.
* Getting referrals to speak for an attorney can help you to get a fairer idea of the caliber of a lawyer. Speak to his previous clients and discuss valid factors like professionalism, reliability and ability to handle cases.
* Do a thorough check on the certificates that a lawyer holds.
Be very careful when you are looking for a bankruptcy lawyer. San Bernardino dwellers can think seek expert assistance from Miller and Associates, PC.