If you’re wondering what a bankruptcy attorney can do for you, we’re here to help. Navigating the world of bankruptcy can be confusing, and having an advocate can make a difference. When considering bankruptcy, how do you know what route to take? Do you file Chapter 7 or Chapter 13? Whether you’re filing commercial or personal bankruptcy, turn to a lawyer you can trust.
What Does a Bankruptcy Lawyer Do?
First and foremost, a bankruptcy lawyer can help you determine if filing bankruptcy is the best choice. You may have other options, and a lawyer will help you understand what makes the most sense depending on your situation.
A commercial bankruptcy lawyer works to help protect your business from creditors in the event you do file for bankruptcy. They also work on your behalf to give you a timeline for the repayment of loans, or to avoid repossession of assets. When you’re trying to rework your financial plan, there’s nothing worse than creditor harassment. That’s one major benefit of having a bankruptcy lawyer.
A personal or consumer bankruptcy lawyer does similar work for an individual or couple who finds themselves in financial hot water. If you’re facing foreclosure versus bankruptcy, your lawyer will guide you to make the right choice based on your circumstances. If you have assets that can be liquidated, your lawyer can help arrange for that money to go toward outstanding loans.
The goal of a bankruptcy lawyer is to help you or your business reduce debts, set up reasonable payment plans with creditors, or help facilitate the transfer or sale of assets.
Chapter 7 versus Chapter 13 Bankruptcy
We’ve shared about Chapter 7 bankruptcy before, but what is the difference compared to Chapter 13? Here’s a brief look at Chapter 7 versus Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
- Individual, corporation or partnership
- No payment plans required
- Must sell assets to put toward debt
- Gives debtor a fresh start (with some exclusions)
- No minimum income threshold
- No maximum debt amount restriction
Chapter 13 Bankruptcy
- Also known as “Reorganization Bankruptcy”
- Works with a repayment plan
- Based on income
- Allows debtor to retain some assets when applicable
When Should I Get A Bankruptcy Lawyer?
If you’re not sure at what point you should look into consulting a lawyer, ask yourself the following questions:
- Am I unable to pay my bills?
- Are creditors contacting me regarding loan repayment?
- Do I have an effective budget in place?
- Do I have to defend myself in court?
If any of the above apply to you, it is probably time to contact a bankruptcy lawyer for guidance. You are not required to have a lawyer in order to file for bankruptcy, but having an advocate on your side can make the process less stressful.