Millions of people are filing bankruptcy in America. Credit crunch, huge job loss and other economic constrains are forcing people to resort to bankruptcy and discharge their debt. Business bankruptcy filing is keeping itself abreast with consumer bankruptcy. Many small to medium size business owners are liquidating their business property to discharge their debt. Common people are choosing bankruptcy when they cannot find debt settlement option.
According to MSN money, total number of consumer bankruptcy filing in 2010 was 1.5 million which was far greater than the amount of 1.4 million estimated in 2009. In this circumstance, a bankruptcy attorney could be an ideal person who negotiate with both creditor and debtor and sort out proper solution. Ideally, many legal hassles are involved with bankruptcy procedure. So, an attorney can better handle those things for you.
Different state has different bankruptcy law. Even state law varies from Federal bankruptcy law. Therefore, it could be difficult for a debtor to decide which bankruptcy law to pursue so that he can obtain maximum benefit. Chapter 13 and Chapter 7 are two widely popular ways that many consumers adopt to discharge their debt. Here, an attorney could help his client in choosing the right one. He may suggest you to include certain debt account into bankruptcy filing. There are also certain discriminations that are put in place while determining non-exempt assets.
If you file chapter 7 bankruptcy, your asset will be liquidated to reimburse the compensation of your creditor. But, all assets cannot be liquidated. This law has been enacted to protect a debtor from losing his vital asset like home, car etc. However, filing Chapter 13 bankruptcy will extend the loan term and restructure the condition of payment. If you take resort to chapter 13 bankruptcy, it could arrange an affordable payment plan for you whereby you pay your debt as per convenience.
A bankruptcy attorney also protects a creditor from potential fraud case. Some types of debts are non-dischargeable. The attorney checks that the debtor is not trying to dissolve those debts like student loan debt, child care, spousal support, tax debt or court ordered fines etc. Sometime, a debtor intentionally gets into huge credit card debt just before filing bankruptcy. He does this on the assumption that the court will discharge his debt through bankruptcy. In this circumstance, an attorney checks the sincerity of a debtor, authenticity of his crisis and his real intention.
Appointing the most efficient bankruptcy attorney is important. There are attorneys who specialize in filing bankruptcy for their clients. Local bar association is a great resource to find out a competent lawyer. Referrals from friends and family could also be helpful for this purpose.