While it is true that filing for bankruptcy can help your business in a lot of ways, the process can be difficult as you are probably navigating the legal system of bankruptcy for the first time. And even though you do not exactly need the help of a lawyer, getting help can help in a significant way as they are well-versed in the areas. The following pointers can help you understand if you need a Chapter 7 Business Bankruptcy lawyer.
If you are living in the US, you are probably already aware of the two kinds of bankruptcy that are there. The first one, as you rightly pointed out is chapter 7, and the other one is chapter 13.
Chapter 7 bankruptcy:
This one is also known by another name, and it’s called liquidation bankruptcy. What typically happens in this one is that the majority if your debts are discharged. So, in case you are wondering who the ideal candidate is, it’s usually those people who are unable to pay their mortgages and monthly debts. A trustee sells assets to pay creditors in Chapter 7. Exempt objects, such as a car or furniture, are safe. Following that, you are discharged from any debts covered by the bankruptcy case.
Chapter 13 bankruptcy:
Another name for this one is wage earner’s or repayment plan. The court adopts a 3- to 5-year repayment plan for debt clearance under a Chapter 13 plan. You are no longer liable for these debts after you have paid them off. In contrast to Chapter 7, Chapter 13 may allow you to keep assets such as a foreclosed property, but you must make timely mortgage payments throughout the plan.
In case you are not sure which one you are eligible for, a lawyer can help you understand that in Orlando.
Final thoughts:
So, what can you expect from your lawyer? Understand that there will be a contract between you and your lawyer, in which the work the lawyer will do for you will be outlined along with the payment details. The credit report impact of a bankruptcy filing lasts 7-10 years, making a bankruptcy lawyer essential. If handling the case is burdensome, paperwork concerns you, or debt collectors bother you, you may require one. Lawyers handle legal concerns, secure correct documentation, and deal with debt collectors on your behalf.
