Excessive debt is a life altering source of stress and frustration. Financial troubles often strike without warning due to loss of income, disability or a struggling economy. It’s a familiar story. You’re tired of receiving rude calls and letters from your creditors, and every attempt to negotiate a solution to your financial problems has failed. Now it’s time to speak with a bankruptcy attorney. A professional attorney will explain your legal rights and recommend a solution to solve your money woes once and for all.
A bankruptcy attorney is accustomed to dealing with serious financial issues. It should be noted that bankruptcy isn’t the only available means of resolving debt and credit issues. A knowledgeable attorney can often negotiate acceptable terms on behalf of a small business debtor, consumer debtor or creditor. There’s simply no substitute for sound legal advice when it comes to resolving a looming financial crisis.
A bankruptcy attorney understands that every financial crisis is unique. Negotiated settlements with credit card companies and other creditors can significantly reduce the debt of a consumer or business owner. Debt consolidation is another means of managing multiple debts. An attorney may also be able to convince a creditor to eliminate financial penalties or reduce interest rates.
Sometimes bankruptcy is the only available means of dealing with excessive debt. Bankruptcy is a sure way to get rid of wage garnishments and discharge unmanageable debts. A bankruptcy petition must be filed in a federal bankruptcy court. Bankruptcy petitions and related appeals may not be filed in a state court.
Federal bankruptcy relief is available to business, corporate and individual debtors. The available means of pursuing bankruptcy relief are listed below:
Chapter 7, also known as straight bankruptcy, allows business owners and individuals to seek liquidation in bankruptcy court.
Chapter 9 of the bankruptcy code is reserved for municipalities that have accumulated excessive debts.
Chapter 11 allows business corporations to restructure their debt. Business debtors can continue to operate in accordance with a court approved repayment plan. This portion of the bankruptcy code is also used by wealthy individuals to reorganize debts.
Chapter 12 makes it possible for family farmers and fisherman to continue business operations while observing an approved financial rehabilitation plan.
Chapter 13, also known as wage earner bankruptcy, allows petitioners to repay all or part of existing debt.
Chapter 15 is reserved for international bankruptcy petitions.
A bankruptcy attorney serves a vital role in the resolution of excessive debt. Unlike a credit counselor or legal assistant, the extensive knowledge of an attorney can result in significant financial savings when it’s all said and done.