The Importance Of Having A Knowledgeable Bankruptcy Lawyer
Making the difficult choice to seek protection under the bankruptcy laws is never something to be done lightly or in haste. The financial and personal ramifications of a filing can be serious and may last for years. As a result, it is critical to enlist the help of a bankruptcy lawyer who has a complete understanding not just of the federal laws affecting your case, but also the laws in your specific state jurisdiction.
Numerous factors will inevitably impact whether or not filing for bankruptcy is the right option in any given set of circumstances. Businesses may reach a point where Chapter 11 reorganization makes good sense, but it is not always clear that it will offer the fresh start needed to regain strong footing.
In the context of personal filings, it is important to consider the debtor’s overall goals and objectives. If there are major assets such as a home that he or she wishes to retain through the course of the bankruptcy, a skilled legal practitioner can provide the advice required to make that happen. Failing to secure solid guidance in these situations can result in devastating unintended consequences.
Every state has its own rules regarding bankruptcy means testing processes and thresholds, and it is important to understand them prior to embarking on a firm course of action. Furthermore, states have different rules surrounding exemptions in a bankruptcy case. These are pivotal in determining what assets can be saved in a bankruptcy filing, and which will likely have to be forfeited in order to get the clean slate so eagerly sought by debtors.
An experienced bankruptcy lawyer is also invaluable in assisting consumer debtors in choosing between Chapter 7 and Chapter 13 filings. This is a very important decision that must be made in every case, and it involves a careful assessment of the potential filer’s debts, assets, income and other important priorities. What is ideal is a lawyer who has extensive experience in dealing with such issues. For examples please refer to bankruptcy attorney Austin for all your questions in this matter.
Chapter 7 “liquidation” cases often make good sense for debtors with very little in the way of major assets. A large amount of unsecured debt, including credit card obligations, can be discharged in this way, making it a smart path for many.
Chapter 13 “wage earner” plans offer a different array of benefits, and can be useful to those who have regular, predictable income, but are unable to repay the full amount of their outstanding debts. By fulfilling a payment schedule created by the court, it is possible to repay a significant portion of the debt, gain a fresh financial start and hopefully put past difficulties in the rearview mirror once and for all.
In the end, there is no substitute for seasoned bankruptcy counsel at each step of the filing, confirmation and discharge process. Errors in the planning, preparation, and paperwork filing stages can result in unwanted dismissal of a filer’s petition. However, such an outcome can be avoided with the help of an attorney who understands the law and how to navigate the sometimes tricky realm of bankruptcy.