Bankruptcy is a financial condition in which the outstanding debt belonging to an individual or a business exceeds the total value of the assets and funds in their respective possession. The stage prior to the filing of bankruptcy is also called financial insolvency. In the event of financial insolvency, an individual or a business can apply for the filing of bankruptcy, which primarily exists in two forms: liquidation and restructuring.
A bankruptcy lawyer can assist in this process by not only determining if bankruptcy is the most viable option for their respective client, but also – in the event that an individual or business chooses to declare bankruptcy – in the compilation of a financial statement, and in completing the legal forms and documents.
Due to the fact that the decision to declare bankruptcy is oftentimes more trying than the actual process of declaring bankruptcy, the presence of a bankruptcy lawyer who is both knowledgeable, understanding, experienced, and versed in legal process of bankruptcy, if not other financial matters as well, is a great asset to the individual in question.
A fear that plagues many people who undergo financial insolvency, a situation in which bankruptcy might present itself as the only viable remedy, are the assumed and implicit societal judgments on them. In order to complete the process of filing for bankruptcy, the outstanding debt must be paid to fullest extent.
The counsel and guidance of a bankruptcy attorney can greatly assist in this process to the benefit of their client. Not only will an experienced and effective bankruptcy attorney oversee the liquidation process, but they possess the ability to allow their clients to retain certain assets that are of sentimental or inherent value.
Oftentimes, circumstances that prompt the onset of bankruptcy are not only unforeseen, but also unwelcome. A personal bankruptcy lawyer is a legal professional who carries a vast array of legal acumen in tandem with an overarching understanding of the multi-faceted legal statutes that exist in the field of bankruptcy law. A business bankruptcy lawyer will suggest the type of bankruptcy to claim that will be of the utmost benefit of everyone involved.
In a majority of cases, Chapter 7 bankruptcy or Chapter 11 bankruptcy will be utilized by businesses. Chapter 7 bankruptcy is the liquidation of all assets and funds in order to repay all outstanding creditor-owned debt to the fullest extent. Chapter 11 bankruptcy involves the complete reconstruction of a business, thus allowing it to remain in operation while repaying outstanding debts.
Akin to Chapter 11 bankruptcy, which is the complete restructuring of a business with intent of repaying all outstanding debt to the respective creditors, Chapter 13 bankruptcy holds the same expectations, but it occurs within the spectrum of the private financial matters of an unincorporated individual. A bankruptcy attorney will express understanding, as well as an ability to listen to the facts in a non-assuming fashion. They will apply their knowledge and legal acumen with the hopes of providing for the best interests of their respective clientele.
In many cases, bankruptcy is not a choice nor an ideal situation, but a financial and personal hurdle to overcome. With the assistance of an attorney, the process of filing for bankruptcy can be completed in the most informed, honest, legal, and objective means possible.