Due to the declining nature of Americas economy and the increasing hardship on our population, many people, who normally wouldn’t be, are being made to claim bankruptcy. To aid these people, this article will provide a brief description of the bankruptcy fundamentals.
A simple definition of bankruptcy is when an individual is unable to pay off their debts. These debts can be either secured (by either a car or house) or unsecured (such as a credit card).
Unfortunately, since the bankruptcy process is very complicated, it is imperative that you enlist the services of a lawyer. Failure to do this can cost you dearly in the long run.
While most people know that you can claim bankruptcy, not many people know that your creditors can force you into bankruptcy court. Many people are surprised to learn that it isn’t always voluntary on your behalf.
It is important to know that there are two chapters of bankruptcy. The first, Chapter 7, means that you will have to totally liquidate all of your holdings. The second, Chapter 13, means that you will have to submit to a repayment plan.
As you are required to use a lawyer for this legal proceeding, you can not bypass this step. While it may not seem fair to require you to spend even more money that you don’t have, this process is just too complicated to do by yourself.
In the past, the attorney only played a small role in the proceedings. However, now that the law has been rewritten, the lawyer must play a significant role. As an example, the lawyer must now affirm that all of the legal forms you fill out for the court are correct and truthful.
As you can imagine, the cost of claiming bankruptcy has gone up, with the increased costs mostly going toward your legal counsel. For the increased fees, your attorney actually becomes more like your partner in that he is also legally responsible for ensuring you provide truthful responses to the court.
Now that you have completed reading this article, we are sure that you will choose to procure a lawyer to assist in this legal process. If you choose not to, you are simply setting yourself up for heartbreak in the future, in terms of many hours of frustration.
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