Function of Bankruptcy Attorneys in Filing for Bankruptcy in NC – North Carolina
Beyond doubt, among hundreds of words that exist in the English language there is one that in the world of business will make almost any one’s heart leap. Actually, this word is associated with ravage, lost homes and ambitions plundered. Presently, bankruptcy affects hundreds of thousands of people every day. In any case, with the aid of bankruptcy attorneys many businessman manage to escape the tightening knot. With the help of these professionals, companies and small businesses succeed in recovering their financial state in several years.
In general, the bankruptcy is usually filed for in several ways. Two, to be precise, – by the debtor or creditor. The debtor may want to initiate bankruptcy procedure to attempt to get rid of the debt burden and start anew, while the creditor may want to get the debt back by receiving the assets of the company that is no longer financially stable. To tell the truth, in both cases with the aid of NC bankruptcy attorneys, the filing for bankruptcy will be handled according to Chapter 7 or Chapter 13. We should say that when the choice of any of the two Chapters is before you, there are a few issues you have to know.
In the first place, Chapter 7 is termed as straight bankruptcy or liquidation. It means that under this Chapter the debtor is allowed to keep certain property. The rest is sold and the money received is used to cover the liabilities to creditors. Under this Chapter there are some debts that are released and some that are left, for example, taxes, loans, legal fines, allowances etc. If the debtor has little assets proper for liquidation, bankruptcy lawyers suggest this Chapter. Therefore, the advantage of filing under Chapter 7 is that the debtor has minimal loss of personal assets which allows them to begin anew rather quickly.
On the other hand, Chapter 13 is termed as reorganization. In fact, this Chapter suits people who have big assets that they are not ready to lose. Under this Chapter the debtor is allowed to pay back the debts under better terms, for instance, lower interest rates or waived fees. Nonetheless, the trouble with this Chapter is that it is difficult to qualify for it. The debtor has to have reasonable assets and income to be able to be considered as eligible for the Chapter protection. The bankruptcy attorney generally helps the debtor to work out a repayment plan for up to five years during which the debtor must pay back the overdue money to creditors. The debtor is usually granted a protection from the bankruptcy court and creditors cannot make any other attempts to get back the debts that run contrary to repayment plan. Nevertheless, if something goes wrong, the debtor might get into more debts during this time.
Overall, if you have troubles with your financial situation and need to file for bankruptcy you should seek advice of a bankruptcy lawyer.
Do you take up residence in North Carolina? If you do, then you can get bankruptcy lawyers in Charlotte from this Chapter 7 and Chapter 13 bankruptcy lawyer directory. Get a free case evaluation with no obligation to hire.
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This post was written by admin on July 24, 2010