Bankruptcy Attorney Can Guide Through The Dizzying Maze of Decisions

Ascent Law LLC

If you’re filing for bankruptcy, it’s a good idea to hire a bankruptcy attorney to help guide you through the process. Not only will they help you make the necessary filings on time, but they will also be able to attend court hearings to represent your case.

A bankruptcy attorney should be familiar with local court procedures and the bankruptcy trustees in your area. This is especially important if creditors challenge your filing.

Chapter 7 bankruptcy

While filing for Chapter 7 bankruptcy may temporarily make your financial situation look bad, it is important to remember that your creditors are not likely to get anything from you. Your first step should be to contact them and work on reducing the amount you owe. If you cannot, you should consider a nonprofit credit counseling agency. You can work with them to plan a budget and get a secured credit card to help you pay your bills.

During the bankruptcy process, you will have to appear in front of a trustee and answer questions. If you are still in possession of property, you may be required to sell it to pay off your creditors. The trustee will also be asked about any recent activity that you have engaged in.

Chapter 13 bankruptcy

If you are considering Chapter 13 bankruptcy, you should know that the process will include budgeting your income and expenses. Certain percentages of your income will go directly to your creditors, while other percentages will be applied to your regular expenses. If you still own your current home or car, you can keep making payments to them directly. However, any arrears will be paid to the Chapter 13 trustee. This will result in a lower monthly payment for you. Moreover, you won’t have to surrender any non-exempt property.

Once you’ve filed for Chapter 13, you will have a plan for paying back your debts. Most Chapter 13 prospects propose a repayment plan over a period of three to five years. However, this plan will last only if you’re earning enough money to pay it off.

Chapter 11 bankruptcy

Chapter 11 bankruptcy, also known as reorganization bankruptcy, is a common solution for individuals who are unable to pay their debts. This type of bankruptcy reorganizes debts by allowing a debtor to keep their business running and pay creditors over time. In most cases, it involves a plan that outlines how the debtor will pay their creditors and keep the business going.

There are many steps in the bankruptcy process, which a bankruptcy attorney can help you navigate. They can help you participate on a creditors’ committee or object to a debtor’s plan. Moreover, they can negotiate with the debtor’s counsel to find the best possible solution.

The first step of Chapter 11 bankruptcy is filing for a plan of reorganization. This plan must be approved by a bankruptcy court to keep your business running. In some cases, the plan will involve liquidating assets to repay creditors, while in others, it will include downsizing operations to reduce expenses. Courts usually require plans to meet strict standards, which focus on fairness and feasibility.

If you need an Personal Bankruptcy Lawyer, please call this law firm for a free consultation.

Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676–5506
https://www.ascentlawfirm.com

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