This article is about Bankruptcy – A Boon Or A Curse. Since 2008 this ten letter word has become one of the most goggled and widely feared terms by not only the corporate bosses and entrepreneurs but also by common men and women across the globe.
The global recession started with the Lehman brothers filing for bankruptcy. Bankruptcy is usually referred to as a term where a person or an organization legally declares that they are not able to pay money that they owe to their creditor. this allows debtors and liquidate their assets in order to pay their creditors as well as buy more time and start their business a fresh… filing for bankruptcy actually helps a firm or an individual to escape wage garnishment or harassment from the creditors . The role of a bankruptcy lawyer is such a scenario is particularly very important. It is he who actually evaluates if the client is eligible for filling a bankruptcy case.
His role is to explain the various proceedings’ of the case and make his client aware of the various advantages and disadvantages that such a petition may invite. However, bankruptcy does not work in case of secured loans like car loans or hoe loans nor will it help debtors to pay debts like alimony, student loans, taxes, etc.
A person can file for bankruptcy after a time of 7-8 years of the first filling and it is shown in the credit report of the person for at least the next ten years from the date of filing. On an appositive note it can stop foreclosures by the creditors and allow bargaining time , but on the negative side it puts a automatic say against the debtors name and he/she is prohibited to take any loan advances till the case is resolved .
He also determines as under which section of the federal law his client should file for bankruptcy so that his case is given a positive response. The lawyer also explains to his client the present state of national bankruptcy laws and ensures that the case is legally fool proof. He represents his client in the court and prepares appropriate documents and responses.
The cost of hiring a bankruptcy lawyer varies according to the experience and complexity of the case. Many people prefers to file for bankruptcy all by themselves , to reduce the cost bout if a clients is faced with serious financial troubles and treat of foreclosures a bankruptcy lawyer can be of great help and assistance. The payment structure is not uniform; some lawyers take payment over a period of time usually expanding through an entire year depending on their consultation provided while others charge money only once when the case is filled.
Initially paying consultation fees for a bankruptcy lawyer may sound like a waste of hard earned resources in trying times but on second thoughts it has been found that the merit of the case and acceptance in the court of law along with the various details can only be appropriately provided by a qualified professional. Professional lawyers can go a long way in saving debtors from the clutches of debt collection executives and ensure a peace of mind which for their clients.