In a bankruptcy attorney’s office you will find all types of bankruptcy lawyers who specialize in different types of bankruptcy including: voluntary, involuntary, business bankruptcy, structured settlements and credit card bankruptcy. While they are all bankruptcy attorneys, they do not all have the same amount of experience or credentials and the experience of each bankruptcy attorney does vary. The best bankruptcy attorneys are experienced in dealing with all different types of bankruptcy cases and have a thorough understanding of federal and state bankruptcy laws.
The first thing you need to do before you talk to a bankruptcy attorney is to decide which type of bankruptcy you want to file. If your debts are not too large then you may be better off by working on negotiating with your creditors yourself. This can make the filing of bankruptcy a lot easier. On the other hand, if you have too many unsecured debts it may be more beneficial for you to seek the help of a professional bankruptcy attorney who can guide you through the filing process.
Chapter 13 bankruptcy is necessary when a person has assets but cannot afford to repay their debts. This type of bankruptcy can provide the opportunity for people with income and property, who have been unable to manage or pay off debt over time, achieve a fresh financial start by developing an appropriate repayment plan under court supervision.
Before you begin talking to a Chapter 13 bankruptcylawyer you will need to figure out how much debt you actually owe to your creditors. This will save you time during the initial meeting as the bankruptcy lawyer will begin to discuss the terms of your payment plan with your creditors. It is also necessary to understand what you can and cannot afford. You may find that there is room for negotiation and your creditors may agree to reduce your debt obligations.
Many bankruptcy lawyers and firms offer their services in a chapter 7 bankruptcy. A chapter 7 bankruptcy means that your debts have reached an amount that will make it impossible for you to repay them. Chapter 7 bankruptcy lawyers will work with you to determine the viability of your financial situation and to negotiate with your creditors to arrange a payment plan that meets your needs. In some circumstances your creditors may agree to wipe out a portion of your debt.
Some people choose to file a chapter 13 bankruptcy, which is considered the worst-case scenario for repayment of debts. The chapter 13 bankruptcy allows for total repayment of your debts over a set period of time. Your credit report will reflect a paid-off debt rather than a debt reflected as being “on-time”. For this reason, many people prefer to file for chapter 7 bankruptcy instead of chapter 13 bankruptcy. A filing under chapter 13 bankruptcy will require that your credit is destroyed.
The role of bankruptcy attorneys is to ensure that creditors receive their due from the estate in a timely manner. They are also expected to manage and administer the file for each debtor as well as assist with settlements.