Joseph Stutzman asked:




Filing bankruptcy has become even more prevalent today than in the past. In 2009, during what some would argue was the biggest financial crisis this country has ever faced, more than 1 million Americans filed personal bankruptcy. Bankruptcy can stop foreclosure proceedings, stop those harassing calls from debt collectors, enable you to keep your car and give you a fresh financial start. Many people would not even have considered bankruptcy an option, but it is much preferable to being out on the street, which is what many Americans faced during this bleak time.

Having a bankruptcy lawyer is critical. Yes, you can file your bankruptcy by yourself, but when you are dealing with so many creditors and constantly changing laws, it makes much more sense to hire an attorney. Most bankruptcy lawyers will not charge you for the first consultation, charge lower rates than other attorneys and will often work on a payment system for you, seeing as how you will be much freer to pay your bills upon completion of your bankruptcy.
A bankruptcy lawyer can advise you on whether to file Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is a complete liquidation of assets which includes the sale of a debtor’s nonexempt property, the distribution of the proceeds going to his creditors. Chapter 11 bankruptcy is for a business wishing to stay in business and involves extending time to repay debts, adjustment of the debt amount and reorganization. This avoids total liquidation and is often preferable to Chapter 7. Chapter 13 is for the home owner and is often put in place when a Chapter 7 claim is found to be abusive of the chapter 7, 11 U.S.C. § 707(b).Chapter 13 allows homeowners to reaffirm with their mortgage companies and automobile creditors in order to keep a roof over their head and have a vehicle by which to gain or continue gainful employment.

Eligibility for each of these bankruptcy filings is complicated, and best guided by a bankruptcy lawyer. It is also best to seek out a lawyer that specializes in bankruptcies. They have the knowledge and the experience to get it done quickly and without error, getting you back on the road to a fresh start that much quicker. No, bankruptcy should not be considered an easy fix or your first choice for debt relief. It stays on your financial record for 7 to 10 years and if you start accepting all those credit card offers that come in after you file, then you will be right back where you started with no relief in sight for another 10 years-you cannot file again before that time. So, along with filing bankruptcy, you should make a conscious decision to do things differently after the bankruptcy is discharged.

The first step is to seek the advice of a reputable bankruptcy lawyer.

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Joseph Devine asked:




There is a seemingly endless variety of ways in which an individual or small business might end up in dire financial straits. For an individual, job losses, unanticipated expenditures on necessary home or automobile repairs, and illness or serious injurysustained in an accident caused by another party’s negligence represent only a small portion of the potential sources of disaster. For corporate interests, a fluctuating economy, shifting consumer sentiments, litigation brought by competitors, and even crime might be a source of difficulty. Under some circumstances these factors may inhibit your ability to satisfy the terms of your agreements with creditors and service providers, raising the need for consideration of a bankruptcy filing.

Though bankruptcy is not the best option for every debtor or business, there are many circumstances in which it may offer much needed relief from aggressive collection efforts. The measures taken by a creditor or collection agency to compel your payment of an outstanding debt can range from strongly worded letters and harassing phone calls to the filing of a lien against you or your property and the pursuit of a default judgment. These actions can haunt you by tarnishing your credit report and reputation for years to come. Bankruptcy protection can prevent this from happening.

Chapter 7

Chapter 7 bankruptcy is perhaps the most extreme in terms of the demands that it makes of a filer, but it may also grant the greatest relief from debt pressure. Key points include:
Liquidation of some assets which are not covered by exemptions Proceeds generated from a bankruptcy sale are divided and distributed to creditors Successful completion of a bankruptcy results in the discharge of most debts A Chapter 7 filing effectively terminates a business as a going concern Chapter 11

Chapter 11 Bankruptcy is most frequently sought by corporations, but is also available to individuals. Commonly referred to as a “reorganization” bankruptcy, Chapter 11 does this. Important aspects are:

Debtors propose a restructuring of their debts and business operations where appropriate Filers gain access to special lending rates that grant them new negotiating power with creditors Businesses may continue to operate while in Chapter 11 bankruptcy Failure to comply with the terms of a bankruptcy plan may result in forced conversion to Chapter 7 Chapter 13

Chapter 13 is similar to Chapter 11 in some ways, and very different in others. Notable details include:

Available only to individuals who are actively employed Debtors propose a 3-5 year payment plan for outstanding debts Foreclosure proceedings may not begin or continue during the bankruptcy period To Learn More

To gain more information about these and other bankruptcy options, contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C.

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