Find Bankruptcy and Debt Lawyers in the USA
Bankruptcy and Debt Lawyers FAQs:
1. What does a bankruptcy attorney do?
Bankruptcy attorneys help debtors clear or decrease their debt or move ahead with their debt for further legal proceedings. They can work for both individual clients or companies and firms. They have the freedom to represent debtors, creditors, both individuals or corporations, trustees, or even committees for creditors.
The main work of bankruptcy attorneys is to reduce debts by advising debtors to cash out their assets in order to pay the creditors. They also help clients by untangling complex legal proceedings every step of the way. During court sessions, they go against the creditors and even put forward debt reformation plans to get court approval.
2. What is the downside of filing for bankruptcy?
One of the major downsides is the exclusion of certain debts like alimony, penalties, secured mortgages, child support, or even student loans in some cases. Bankruptcy has a huge impact on assets, it comes down to which assets you get to keep and what you have to give up.
Equities and investments inside homes are put up for valuation by concerned trustees, the money raised will help pay the creditors.
Also, you don’t get any tax refunds if you have filed for bankruptcy. You lose all your credit cards and your credit score will hold the record of bankruptcy for 6 long years. Employment is affected during this period, also, it prevents you from being in charge of any money of trust funds along with getting forbidden from having the chair of Director while bankrupt.
3. What happens if you have to declare bankruptcy?
If you are declaring bankruptcy, you have a chance to eliminate certain parts of the debt completely, while you get some more time to pay the rest parts of your debt. But mostly, bankruptcy’s all about the automatic stay, which puts a block on your debt thus preventing the creditors to collect. They further can’t go after your assets or deduct money from your account or your salary.
4. Will I lose my car if I file bankruptcy?
Whether you get to keep your car or not, depends on whether you are filing for Chapter 7 or not. In chapter 7, you have to sell some of your assets to pay off the debt. But, you can keep your car as long as you are paying your car loan regularly, and if your car’s market value is less than the exempted amount.
5. What can I expect at a bankruptcy consultation?
The first consultation would focus more or less on your lawyer understanding your financial stability or status and brainstorming the best ways to deal with them. Every attorney or law firm has procedures to deal with bankruptcy, while some would give you a list of paperwork and questionnaire well ahead of your first consultation, while others would make you fill up one impromptu. But the common notion here is document collection as major procedure needs.
6. What is Chapter 7 and how does it work?
Chapter 7 is about gathering and selling off debtor’s non-exempt assets by trustees. The proceeds of these assets are used to pay creditors according to the Bankruptcy Code. But, part of these assets might be mortgages and liens that are property of other creditors, but the debtor can keep exempted properties to himself, while the trustees liquidate other non-exempt assets.
Chapter 7 case starts with the indebted person recording a request with the court serving the area of the debtor’s business or main assets. (3) Along with the petition, the debt holder should likewise record with the court: (1) schedule of assets and liabilities; (2) a timetable of current pay and consumptions; (3) statement of monetary issues; and (4) a timetable of executory contracts and unexpired leases. Taken care of. R. Bankr. P. 1007(b). Indebted should likewise give their assigned trustee a duplicate of the expense form or records for the most recent tax year as well as tax returns filed during the case (including the returns that have not been filed before the case).
After the process, the only debts that are not dissolved are
7. What is Chapter 13 and how does it work?
Also known as the wage earner’s plan, it allows individuals with regular income to come up with a debt reorganization plan to pay off the whole or parts of the debt. The debtors make a plan to repay their debt to the creditors in an installment within 3-5 years.
Unless the court orders otherwise, the debtor must also file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). The debtor must also file a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in the federal or state qualified education or tuition accounts. 11 U.S.C. § 521.
After the process, you will have to repay the following debts-
8. What is Chapter 11 and how does it work?
Chapter 11 provides reorganization of debt that involves both corporations or partnerships and individuals. This helps to keep the business alive while buying time to pay the creditors off. For individuals, it helps to reorganize finances and secure assets.
During a Chapter 11 session, the court will help a business reorganize its huge debts and obligations. In most cases, the firm remains open and operating. Many large U.S. companies file for Chapter 11 and keep the business floating.
In the case of individuals, chapter 11 is mildly similar to chapter 13. It is mainly used to secure priority tax debts, secured debt, unsecured debt, and even lease or executive contract debt.
9. How much in debt do you have to be to file Chapter 7?
There is no maximum or minimum debt to file for chapter 7. But, one has to take note of how much dischargeable debt one has before filing for chapter 7.
10. What debts are forgiven under Chapter 7?
Debts that are unsecured, like medical bills, personal loans, and even credit card debt are forgiven under chapter 7. Although, the process takes 5-6 months from the time the filing started in the court.
Bankruptcy and Debt Attorneys' Categories:
Certified Specialist in Bankruptcy Law by State of California since 2004; Over 29 years experience representing individuals and small businesses.
Los Angeles, California, 91345, United States
A considerate approach to the loss of a loved one. Montana Legacy Law, PLLC helps families navigate the process of death. Montana Legacy Law, PLLC practices
Hamilton, Montana, 59840, United States
I am committed to helping my clients achieve their financial goals in any way possible. I will even take the time to fill out the paperwork for you, if necessary.
Las Vegas, Nevada, 89104, United States
Michael S. Kalis is Of Counsel to Rudolph Friedmann LLP. A 1981 graduate of Suffolk Law School, Attorney Kalis is licensed to practice in Massachusetts, the
Boston, Massachusetts, 02109, United States
Bankruptcy Attorney in Los Angeles
Los Angeles, California, 90017, United States
Bankruptcy is a legal procedure by which debtors can eliminate debts or create a plan to repay them. Congress enacted the bankruptcy laws with the express
Mobile, Alabama, 36604, United States
Bankruptcy Attorney Victor Palmeiro practices law in Maryland and the District of Columbia. He received his Bachelor Degree from the University of Maryland
North Bethesda, Maryland, 20852, United States
Experience matters in all aspects of life, and that certainly holds true when you need help resolving unmanageable debt problems and resetting your financial
Jackson, Mississippi, 39216, United States
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