Financial problems can force a business organization to declare bankruptcy as an easier way of working Financial difficulties. However, it is a process that can be very difficult and you will need the help of a bankruptcy lawyer to file and do everything right for you. There are usually commercial bankruptcy attorneys assisting with filing for business and consumer bankruptcy attorneys filing for individuals.
In a business ecosystem, your business gets protection from creditors, while in the consumer arena or environments you or your spouse receive protection from creditors and deal with debt clearance or setting of payment plans. When to get a bankruptcy lawyer ? The best steps you can take when combating financial problems is to accept that there is a problem and actually take the right step in dealing with it. Inability to pay bills, lack of cash, bounced checks, constant creditor, and debt collector calls, debt that continues to pile up, leaving you unsure about how to handle the financial difficulties are some of the signs you need to get yourself or your business a bankruptcy lawyer. As a struggling business, your lawyer will be able to help you get the time to restructure the business and reorganize the debts or in any worse situations, close the business.
On a personal level, the lawyer will get you a fresh financial start by sacrificing some of your assets or you can rearrange debts and negotiate repayment plans with your creditors if you want to pay off the debts. When you are filing bankruptcy, unavoidably you will encounter the term exemptions. In every layman’s terms, exemptions are the things you have to keep when you apply for bankruptcy shelter. Other than the federal exemptions when you are filing for bankruptcy, many states have their own set of exemptions as well that guides it. You have a choice of using the federal or the state’s exemptions when you are filing for bankruptcy.
By declaring something exempt when you are filing for bankruptcy, you have successfully protected these assets from your creditors. You cannot apply one set of the rule when it comes to exemptions with the bankruptcy because it varies from federal to state, and the state to state. A straightforward illustration of this distinction is the exemption for a car. When filing bankruptcy in Texas, you are allowed $30,000 for the exemption in a car whereas Florida only allows $1,000.
Since the exemption rule varies from state to state, the amount that the creditors can gather through the bankruptcy process largely depends on the state that you live in. Some states also created “wildcard”, which is an exceptional exemption that you can apply to any property that you own. An example of a “wildcard” rule is as follow. If you have a car and your state gives you $3,500 in an exemption for the car and the blue book value of the car is only worth $1,500. The difference of $2,000 can use a “wildcard” in some states which essentially lets you use this $2,000 on any other asset you are to protect. If you have an extensive model train set, you can label this train set as the “wildcard” exemption and not worry about the bankruptcy judge liquidating it to pay back the creditors. In 2005 when the Congress amended the bankruptcy law, it prevented people from moving to a state where there is better bankruptcy exemption.
In order to take advantage of the state’s exemptions, you need to have lived inside the state for 2 years prior to the bankruptcy filing. If you do not qualify for the state’s exemption rule because you have not lived there for the past 2 years, you can qualify under another state where you have lived in for more than 180 days in the past 2 years.
Your last alternative is to use the federal exemption which is the least desirable of them all. Given that the exemptions of the bankruptcy law are quite convoluted, as it varies from state to state, you will be better served to seek the advice of a qualified bankruptcy attorney. By using a certified bankruptcy lawyer, you should be able to retain more of your assets when filing bankruptcy and lose less to the creditors.
What are the Advantages of getting a bankruptcy lawyer
1) A bankruptcy lawyer will provide you with competent legal advice. Not only will you receive advise if declaring bankruptcy is the best way to go for your business, but it will also help you with filling in the right category and advice on the best ways to use bankruptcy to achieve the financial goals you have. As part of the advice, your lawyer will also prepare you for the process, make it as easy as possible and even share risks or potential difficulties.
2) The lawyer will have the experience to handle your bankruptcy. Familiarity with federal bankruptcy laws, local court rules, and regulation, procedures, as well as bankruptcy administrators within your area will make the process easy for your lawyer. To enjoy this, you must make sure that you work with an attorney who has the necessary knowledge, skills, and experience to handle your type of case.
3) Dealing with all bankruptcy proceedings: Lengthy form packets are inevitable in a bankruptcy case, but fortunately, the presentation is something your lawyer will handle for you. Lawyers have a specialized software that makes it easier for them to prepare or file the relevant paperwork with the courts. All you will need to do is provide your lawyer with all the important information to fill out the forms like assets, income, and expenses, also debts.
4) Representation in the hearings: Bankruptcy cases can have a number of hearings. While you may be required to attend the meeting of creditors, your bankruptcy attorney can represent you at any additional hearing. This representation saves you the anguish, depressions that come
Certainly, a good bankruptcy lawyer can be very beneficial to facilitate the otherwise tedious process for you. With the help of bankruptcy attorneys that are skilled and experienced, you are sure to get the best representation for the best results with your case.