Andrew Stratton asked:




Bankruptcy lawyers are legally licensed practitioners that assist individuals or businesses with the legal proceedings involved in filing for the same. They begin by guiding their client through the necessary steps in choosing the appropriate filing option, and then continue to assist the person with related paperwork, dealings with past debt collectors, keeping them informed of corresponding state laws. The most common type filed in the United States is Chapter 7, which is relatively quick and simple, but Chapter 13 is quite common if the debtor is employed or makes money some other way.

Chapter 13 is a type of financial rehabilitation designed for individual households with a steady income to repay all of their debt in specific payment plans, and it is also referred to as the Wage Earner Bankruptcy.
Chapter 13 allows the individual to keep possession of all assets, but the person is required to continue paying on his or her debts over time. This payment process usually lasts about three to five years. The amount of payment is dependent on various factors within the situation, including the debtor’s income and personal living expenses.

Bankruptcy lawyers handle the establishment of such payment plans, and make decisions in accordance with the law, which varies state by state. If their client’s monthly income exceeds the corresponding state’s median income, the payment arrangement will usually be set to exist for five years. If their client’s income drops below their state’s median earnings, the arrangement will be set for three years unless the federal court system states otherwise.

Although having the ability to start fresh financially is generally a huge relief for people struggling with debt collectors and monetary balance, filing for bankruptcy (regardless of the chapter) also has its negative aspects.

The most obvious disadvantage is the existence of such a drastic action recorded on the debtor’s credit report for up to ten years. The individual must seek permission from the court of the same if he or she wishes to obtain extra credit while the case is pending. Also, a person involved in actual bankruptcy proceedings will be less likely to be granted loans from a creditor as long as the information remains with the Credit Bureau. Lawyers that specialize in elimination of debt and related legal proceedings can help relieve their client of the stress of foreclosures, wage garnishing, harassing creditors, liens, and repossessions associated with financial crisis, while informing their client on both the benefits and possible negative results of Chapter 13.

http://rexkaufman.vox.com/library/post/using-chapter-13-bankruptcy-to-stop-foreclosure.html

Arijit Roul asked:




The bad form of bankruptcy

If you find yourself in a situation whereby a chapter 13 bankruptcy is not working, then you might want to hire a bankruptcy lawyer or attorney to help you. They will probably advise you that the next step is to consider chapter 7 bankruptcy. Many people fear chapter 7 bankruptcy because it has the ability to ruin your credit rating for a minimum of ten years. The role of the bankruptcy lawyer or attorney will be crucial in this type of bankruptcy because of the implications that it can have for your life and those of the people around you. Chapter 7 is not a selfish decision to be taken lightly but one which you have to agree with your closest family members.
I once again have to emphasize that you should not be too ashamed of yourself just because you have had to resort to bankruptcy to deal with your immediate problems. Many people in the community may be in similar situations but they might not inform the general public. I am sure if the internet was allowed to publish all the credit histories of your neighbors, you would find some very interesting reading. I would advise that you accept your situation and visit the bankruptcy lawyer or attorney at the earliest opportunity so that they can give you detailed advice.

What happens under chapter 7?

The basic mechanics of chapter 7 is that you simply take your assets and liquidate them to try and pay off what you owe. Specific state laws may dictate that certain assets cannot be attached but again these are very restrictive. The upshot is that you will be in a lot of trouble. Your bankruptcy lawyer or attorney will be able to advise you on the jurisdiction within which you lie and any exemptions that you might be able to make. Under no circumstances should you consider going on your own. Remember that the creditors are not out to protect your interests. All they want is your money.

Chapter 7 bankruptcy is usually associated with individual couples who may not be able to meet their obligations. Therefore it is imperative that your spouse is aware of what you are doing. Your bankruptcy lawyer or attorney might remind you of this requirement if he thinks you are deliberately keeping the other party in the dark. The worst thing that can happen to a relationship is that you lose your assets as well as your love over bankruptcy.

http://chapter13bankruptcynow35.blogspot.com/2009/04/using-chapter-thirteen-bankruptcy-to.html