It is intriguing to know that some of the leading business houses that almost dominated the world market five years back, are bankrupt today. As all know, the turn of the century brought with it a major financial crash that had worldwide repercussions. Unstable financial times and slow economies ensued, leading to mass lay-offs and major cutbacks. Leading world economies have suffered financial paralysis and unemployment and bankruptcy issues are rampant in almost all countries. As a result, the number of bankruptcy cases have markedly gone up with the aftereffects of the Recession still threatening nations. In such a scenario, the role of a bankruptcy attorney is of highest importance among all other branches of legal practice. How exactly does a bankruptcy attorney help a client or a petitioner file for bankruptcy? Let us take a closer look.
To begin with, the lawyer explains to the petitioner the possibilities of his case, the approach that would be ideal, and how to stall the ever-nagging creditors. Every case needs to be analyzed carefully before filing under a certain chapter of the Bankruptcy Code. Remember, most of the personal bankruptcy cases fall under Chapter 7 while businesses that are close to shut-down try one last stand by filing a petition under Chapter 13 before finally closing down. What is the difference in the approach adopted under these two chapters of the Code? What are the other chapters that also fall under the Code?
Under the Chapter 7 approach, the court issues orders to liquidate assets possessed by the petitioner and clears the debts using the money obtained in the auction. Thus, all physical property possessed by a business including its property holdings are sold in the market. In cases of personal bankruptcy, foreclosures and auction of property included in these houses are undertaken.
Under Chapter 13 approach however, the mode of repayment resorted to is entirely different. The deadline is extended over three to five years and the business is allowed to re-organize its finances and operate normally during the interim period. Any form of payment to the client is stalled during this period of time, giving the petitioner ample opportunity to recover losses and clear debts.
The main role of the attorney is to help the client understand which Chapter to file their bankruptcy petition under and handle collection calls and letters from creditors in the appropriate manner. The petitioner needs to clear the Miles Test in order to qualify for Chapter 13 bankruptcy, in the absence of which he or she has to go for Chapter 7 bankruptcy. The lawyer helps his client understand which chapter to go for and details that he has to mention during the Miles Test.
Thus, only with the help of an experienced bankruptcy lawyer, Conyers, GA area petitioners will be able to understand the legal nuances of filing for bankruptcy and adopt the correct approach.
Bankruptcy Lawyer Conyers, GA – When on the look-out for the assistance of an experienced bankruptcy lawyer, Conyers, GA area residents can always rely on the services offered by Steve Orr Attorney, LLC.