subject: Bankruptcy And Bankruptcy Lawyers [print this page] Many people avoid getting themselves a bankruptcy lawyer on the basis of the argument that getting bankrupt is not what their future holds. What they need to understand is that bankruptcy is something that can hit anytime and the only way to avoid problems is to take judicial measures which have been made to preserve the interests of both the creditor and the debtor. To undergo the trials that will take place between the two parties, it is the bankruptcy lawyers that act as the middlemen and take care of all the actions that need to be undertaken to call truce.
If a firm is undergoing losses and is in no means capable of paying off the debts, it files for bankruptcy. All this is done under the strict guidance of the lawyers representing the firm. Various aspects need to be considered while filing like the costs and the way to rebuild credit. As the role played by these bankruptcy lawyers is pretty farfetched and involving in nature, finding the right kind is important. While selecting a lawyer, keep in mind the following:
Specialization: The firm should only opt for the lawyers who have gained specialty in this field of law. Only such people would be able to deal with all the problems comfortably. Hiring one from another field would be a vulnerable option that could call the cards on you.
Experience: Only specialization is not enough, get someone who has experience in this field. An experienced person is bound to be more confident about what he/she intends to do. The quality of work put in by an amateur and an experience worker differs greatly.
Costs: This is something that is totally up to the firm filing for bankruptcy to decide. Hiring a law firm that is high in the records would demand more money for their services and also, the chances of getting no extra services is high, whereas a comparatively smaller firm although would have less credentials, would be willing to provide better services at a lower cost.
There are 2 methods which can be adopted for bankruptcy filing by the lawyers. The difference between both of them is in the way the debts are paid for. The first is the Chapter 7 bankruptcy which involves selling off all the assets of the owner in order to pay for the debts. The second is the Chapter 13 bankruptcy which involves making regular payments to the creditors and also barring them from approaching the person in question directly. Nothing is sold, but a lot of work has to be put in to repay the debt amount. The lawyers need to be consulted and the right filing needs to be done after through consultation looking at the pros and the cons of both.
It is for everyone to know that filing for bankruptcy, although wavers all debts, leads to the downfall of the reputation that the person might have gained in the market and also undermines his credibility in getting credits from banks. This judicial method does not include any assistance from the government courts to help make a new beginning.
