No businessman ever hopes to experience insolvency certainly because aside from losing money, such situation involves a complicated process. To ensure right steps are done accordingly, it is imperative to hire the services of an experienced bankrupt attorney in Glendale. As defined, bankruptcy is a legal procedure wherein a business is forced to liquidate the assets in the hope of paying all the company’s debts. Once a bankruptcy case is filed, your creditor will file a petition for you, as the debtor, to completely pay the outstanding balance.
In this case, you will be required by the federal law to seek the assistance of a bankruptcy attorney to guide you in overcoming the legal implications that comes with bankruptcy. An experienced attorney understands that there are specific laws imposed to direct the interactions of creditors and debtors during bankruptcy. Among all other law practitioners, bankruptcy attorney is in the best position to handle the case and who can obtain the best arrangement out of the case. It is therefore important to spend enough time looking for the most reliable and experienced bankrupt attorney.
Bankruptcy, otherwise known as insolvency is categorized into two. An experienced attorney will be able to help you understand each category and advise you on how to deal with your case. Your attorney will be able to provide you accurate details about your case after considering the analysis of your bank statements, credit bills, debt notices, loan papers, and other related financial records. Once your bankrupt attorney in Glendale has evaluated the actual financial conditions of your business, he or she will be able to identify the right procedures to be applied and will further tell you what the other available options are.
The two categories of business bankruptcy are Chapters 13 and 7. Your attorney should have verifiable knowledge about Chapter 13. Your case will be classified under such category if, and only if, you as the debtor have a net income that is higher than the middle net income of the state. You will be given the opportunity for a debt management program. Such program allows the debtors to be clearly informed about the payment requirements and allow them to pay off their debts within a specified period of time. Typically, such process will take 3 to 5 years. The court will appoint a trustee who will facilitate the collection of payments from the debtors and divide the payments among its creditors. The debtors are the ones who will be charged for the trustee’s service.
On the other hand, Chapter 7 is usually filed if the debtor’s net income is lesser than the state and is unable to pay their loans. This is the most filed case and highly requires the services of an experienced bankrupt attorney in Glendale. Most of the time, liquidation of assets is recommended to pay off the debtor’s debts. The court will also appoint a trustee who is tasked to administer the liquidation of all non-exempt properties of the debtor. The creditors will then be paid using the money obtained from the sale of these assets. There are also some situations where the debtors have the chance to keep some of their properties.
Considering the above information, it is therefore a necessity to hire an experienced bankrupt attorney. Without the attorney’s service, anyone filing for bankruptcy will surely have a tough time understanding bankruptcy law and interpreting them. The expertise of a bankrupt attorney will help you obtain a good outcome and will represent your interests to the best of their abilities. You should however make sure you only hire the most qualified attorney. Researching is one key step in finding the best among the best attorneys out there.