Personal Bankruptcy Lawyer Is A Must

When you are unable to handle the magnitude of the debt that you are in

, the US government offers you the opportunity to declare bankruptcy. This is temporarily take the harassing debt callers away till you are able to work out a solution based on various chapters on how you plan to move forward and clear your debt. Personal bankruptcy can be declared under Chapter 7 or Chapter 13. In Chapter 7, you may be able to discharge all or a part of the debt you owe. Under Chapter 13, you will have to clear you debt based on a repayment plan that a court has charted out for you. In either case it would be necessary for you to approach a bankruptcy lawyer. You will need his expertise to help you file as well as get through the proceedings of bankruptcy.

Chapter 7 makes use of all you liquid assets. This is a reference to all those assets that can be sold and converted into cash. All of these assets will have to be handed over to the court, who will in turn distribute this amongst your creditors. There are some assets that will be exempt for liquidation. What these are will depend on the laws of your state. A bankruptcy lawyer will be able to guide you when it comes to preparing a list of your assets for the court.

You will need to qualify for each form of bankruptcy. A lawyer will be in a better position to assess your situation and help you file accordingly. When it comes to Chapter 7, you will have to undergo tests to prove that you median income is less than the state recommended. If it is above, then you will have to file under Chapter 13. Under Chapter 13, the court will work out a 3 to 5 year repayment plan for you. This is done in conjunction with your creditors. You will have to stick to that chart irrespective, for fear of penalty. After you have successfully completed the repayment plan, any remaining debt will be discharged.

It would be wise to choose Chapter 13 over 7 in case you have some secured debts like a car loan. These are debts that you will intend on clearing. Its also a better means of being allowed to keep these assets. The U.S. Bankruptcy Code states that in order to file under Chapter 13, you should not have more than $922,975 in secured debt and $307,675 in unsecured. A lawyer will be the best guide in this situation.

by: Enrique Castillano

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