What comes to mind when you hear the word bankruptcy? In most cases, people have a negative perception about the issue of bankruptcy. However, it is not as bad as you think. Actually it could be a good idea to adjudge oneself bankrupt. Whether it is on an individual level or at the organization level, when declaring oneself bankrupt or someone else filing a bankruptcy petition against you or your organization, you will need to hire a bankruptcy attorney to ensure that your interests are catered for. You could also be a creditor and you need to recover your debt and the settlement needs to take care of your interests and to do this you will need legal representation.
In the United States of America, matters of bankruptcy are governed by the Bankruptcy Code. Under this code, there are various chapters and each chapter addresses a particular issue on the bankruptcy phases. One can choose the chapter under which to file the bankruptcy petition.
It is important to note that the benefits under these chapters are different and it is thus important to evaluate the pros and cons of filing the petition under the various chapters and going by the one that appeals most whether as a debtor or a creditor.
Differences between chapter 7, 11 and 13
Chapter 7 of the code deals with liquidation. In this case, property that is non-exempt and belonging to the debtor is sold and what comes out of the sale is distributed among the different creditors. Chapter 7 bankruptcy lawyers help in evaluating whether this is the best plan for you. It mostly applies to businesses that want to wind up their business. However, if a business wants to continue operating, the liquidation process is not the best option. In such a case, they may file a petition under Chapter 11.
Under Chapter 11, a business seeks to make adjustments to its debts. This may be done in two ways: paying part of the debt thereby reducing it, or asking for a time extension within which they expect to repay. When one engages Chapter 11 bankruptcy lawyers, they may advise on other suitable comprehensive arrangements.
Under Chapter 13, the debtor enters into an agreement with his creditors that within a certain period, he will have paid all or a certain percentage of his debts. This arrangement goes well with people who have regular income. There are Chapter 13 Bankruptcy Lawyers that will help you to go through all your sources of income and make an evaluation to know whether this plan would be to your interest or not.
Going about a bankruptcy agreement
Depending on the advice that you get from your bankruptcy attorney, you will then file a petition either as a creditor or a debtor. However, you need to know that it is the court that will approve your plan. It looks at the best interest of the parties and then makes adjustments. It can even adopt your plan as agreed. You need to work with a good attorney and when you do so, chances are high that the court will adopt your scheme.
Weber Law Firm, P.C. has attorneys who are knowledgeable in bankruptcy matters. In this firm, you will get a bankruptcy attorney who will give you detailed information and advise you accordingly. You can be sure that you are in the right hands.