In difficult economic circumstances, individuals or businesses are often faced with huge debt-related issues. People raise a bankruptcy case when no other option remains and you can not find a way to repay creditors.
In fact, bankruptcy is an obstacle that individuals can not pay creditors. If an individual or company raises a bankruptcy case, he should hire a good bankruptcy attorney. Understanding the legal impact of bankruptcy is not easy. A bankrupt lawyer can give you a fair idea of the whole process.
Two of the most commonly preferred bankruptcy options are:
Chapter 7 - This form of debt relief provides the option of paying all obligations to the obligor by transferring tax-free property to a bankruptcy trustee (a person assigned by the court). The latter converts the asset into cash and pays the creditor. Determination of exempt and tax-free property is different from state to state. It is better to consult a lawyer to learn more. This bankruptcy option is often called "liquidation of assets". This is useful for those who do not have expensive assets.
Chapter 13 - This option allows debtors to retain their property and repay their obligations within three to five years for creditors' refunds. This option is also called "restructuring bankruptcy". Everyone can not select this option because it is necessary to prove that the obligor is in a position to pay part of the obligation and repay the outstanding debt after a certain amount of time has elapsed. The court checks if his income is sufficient to repay creditors later.
Each of these options has its own eligibility criteria. An experienced bankruptcy attorney can analyze your case concretely and decide which options are eligible for you. Always check that attorneys have sufficient qualifications in the field to gain your professional guidance. Debts and assets vary from state to state. Hiring a special lawyer will help you understand the complexity. It also helps you fill in legal documents and other procedures.
If you or your business is facing serious financial problems and you are thinking about bankruptcy, please help with a bankruptcy attorney. Henderson NV citizens can contact the Cooper Law Firm and receive expert legal assistance.
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