what is a bankruptcy lawyer

A bankruptcy lawyer specializes in giving legal advice to a client about bankruptcy, prepares legal documents for the client and represents the client in court. An attorney must hold a law degree and be licensed in the state where they do business. As your guide through the bankruptcy process, a lawyer can advise you about matters such as:

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What does a bankruptcy lawyer actually do?

At the outset, a bankruptcy attorney is there to counsel you on the bankruptcy process and whether it is right for you. They serve to help you take a critical look at your debts and assets and determine if bankruptcy is the path that will best help you or if a smarter approach is to attempt to improve your circumstances from a different angle.

How to find a good bankruptcy lawyer?

A bankruptcy lawyer’s primary focus is to assist clients through court proceedings to reduce or eliminate debt or to proceed forward with bankruptcy. A bankruptcy lawyer’s clients may be individuals or corporations. They may represent individual or corporate debtors, individual or corporate creditors, creditors' committees, and bankruptcy trustees.

What does a bankruptcy lawyer do for You?

Feb 24, 2022 · A bankruptcy lawyer specializes in giving legal advice to a client about bankruptcy, prepares legal documents for the client and represents the client in court. An attorney must hold a law degree...

What is the salary of a bankruptcy attorney?

Bankruptcy lawyers engage in and review discovery documents, and hold meetings with clients and adversaries to discuss how best to move forward. Motions filed in bankruptcy cases will be set to be heard by the court, and lawyers will have to be prepared to argue them.

Definition of Bankruptcy Law

Bankruptcy is a legal procedure initiated by an individual or a business that cannot pay their debts and seeks to have the debts discharged or reorganized by the courts.

Terms to Know

Bankruptcy Petition - The document filed with the U.S. Bankruptcy Court that initiates a bankruptcy proceeding; usually contains the debtor's assets, debts, and other liabilities

Other Considerations When Hiring a Bankruptcy Lawyer

Although most lawyers are free to request permission to practice in U.S. Bankruptcy Court, effectively representing bankruptcy clients requires thorough knowledge of the U.S. Bankruptcy Code.

What do bankruptcy lawyers do?

Bankruptcy lawyers engage in and review discovery documents, and hold meetings with clients and adversaries to discuss how best to move forward.

What is the federal bankruptcy law?

Federal bankruptcy laws, which govern nearly all bankruptcy proceedings, are statutory laws outlined in Title 11 of the United States Code. Because one code governs all bankruptcy proceedings in the country, this area of law tends to be very uniform and precise.

When did bankruptcy start?

Bankruptcy laws focus on helping individuals solve and repay their debts after they have suffered heavy losses. In the United States there were bankruptcy laws as early as 1800. However, the first voluntary bankruptcy laws were allowed through the Acts of 1841 and in 1867.

What is the difference between Chapter 7 and Chapter 11?

In particular, there are three common types of bankruptcy proceedings. Chapter 7 of the Code applies to individual petitions, while Chapter 11 proceedings are filed by businesses.

What is the Nelson Act?

These laws along with the Bankruptcy Act in 1898 also called the Nelson Act are what our modern debtor/creditor relation system are based on. It is common to hear that a person in a bad financial situation may “ declare bankruptcy .”.

What do bankruptcy attorneys do?

Almost all bankruptcy attorneys have specialized software that prepares and files your required bankruptcy paperwork with the court. You'll provide your attorney with all of your financial information, such as income, expense, asset, and debt information.

How to file for bankruptcy?

First, you can expect your attorney to tell you whether filing for bankruptcy would be in your best interest. If it is, you should also learn: 1 whether Chapter 7, Chapter 13, or another type will help you achieve your financial goals 2 what you can expect during the bankruptcy process, and 3 whether your case involves any particular difficulties or risks.

What to expect during bankruptcy?

Most importantly, if you have any questions, you can expect your attorney to respond to your calls or emails promptly.

What is the mandatory hearing for bankruptcy?

After filing for bankruptcy, all debtors must attend a mandatory hearing called the 341 meeting of creditors. But, depending on your case, you (or your attorney) might need to go to additional hearings. Some common types of hearings you can expect your attorney to represent you at: Chapter 13 confirmation hearings.

What is a retainer agreement?

In general, your retainer agreement (the contract you and your attorney sign) will outline the services your bankruptcy attorney will provide . Your attorney's job is also to provide you with competent advice throughout the bankruptcy process.

Can an attorney text you?

Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

Is filing for bankruptcy a good idea?

Filing for bankruptcy is a great way to get out from under burdensome debt, and most people feel a tremendous sense of relief when their bankruptcy case is over. But understanding the process and filling out the bankruptcy forms can be daunting. That's where a bankruptcy lawyer comes in. Not only will you receive legal advice, ...

What is bankruptcy in business?

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used ...

Where is bankruptcy handled?

Bankruptcy is handled in federal courts , and rules are outlined in the U.S. Bankruptcy Code. There are various types of bankruptcy, commonly referred to by their chapter within the U.S. Bankruptcy Code.

What are the different types of bankruptcy?

While Chapter 7, Chapter 11, and Chapter 13 are the most common bankruptcy proceedings, especially as far as individuals are concerned, the law also provides for several other types: 1 Chapter 9 bankruptcy is available to financially distressed municipalities, including cities, towns, villages, counties, and school districts. Under Chapter 9, municipalities do not have to liquidate assets to repay their debts but are instead allowed to develop a plan for repaying them over time. 5  2 Chapter 10 bankruptcy, which effectively ended in 1978, was a form of corporate bankruptcy that has been supplanted by Chapter 11. 6  3 Chapter 12 bankruptcy provides relief to family farms and fisheries. They are allowed to maintain their businesses while working out a plan to repay their debts. 7  4 Chapter 15 bankruptcy was added to the law in 2005 to deal with cross-border cases, which involve debtors, assets, creditors, and other parties that may be in more than one country. This type of petition is usually filed in the debtor's home country. 8 

Why do businesses file for bankruptcy?

Businesses often file Chapter 11 bankruptcy, the goal of which is to reorganize, remain in business, and once again become profitable. Filing Chapter 11 bankruptcy allows a company to create plans for profitability, cut costs, and find new ways to increase revenue.

How does bankruptcy help the economy?

Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid while giving creditors a chance to obtain some measure of repayment based on the individual's or business's assets available for liquidation. In theory, the ability to file for bankruptcy benefits the overall economy by allowing people and companies a second chance to gain access to credit and by providing creditors with a portion of debt repayment. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations that were incurred prior to filing for bankruptcy.

What is Chapter 7 bankruptcy?

Chapter 7 Bankruptcy. Individuals—and in some cases businesses, with few or no assets—typically file Chapter 7 bankruptcy. It allows them to dispose of their unsecured debts, such as credit card balances and medical bills.

How long does a debt repayment plan last?

The repayment plans are commonly in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts allow these debtors to keep all of their property, including otherwise nonexempt property. 4 .

How does bankruptcy help people?

Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses. This section explains the bankruptcy process and laws.

Can a spouse file for bankruptcy?

A petition may be filed by an individual, by spouses together, or by a corporation or other entity. All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code. There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

What is bankruptcy court?

Bankruptcy is a court proceeding in which a judge and court trustee examine the assets and liabilities of individuals, partnerships and businesses whose debts have become so overwhelming they don’t believe they can pay them.

Why are bankruptcy laws written?

Bankruptcy laws were written to give people an opportunity to start over when their finances have collapsed. Whether the collapse is a product of bad decisions or bad luck, lawmakers could see that a second chance is a vital fallback in a capitalist economy.

What happens before filing for bankruptcy?

Before you file, you must educate yourself on what happens when you file for bankruptcy. It’s not simply a matter of telling a judge “I’m broke!” and throwing yourself at the mercy of the court. There is a process – a sometimes confusing, sometimes complicated process – that individuals and businesses must follow.

How long does bankruptcy stay on your credit report?

Filing for bankruptcy impacts your credit score. Bankruptcy remains on your credit report for 7-10 years, depending upon which chapter of bankruptcy you file under. Chapter 7 (the most common) is on your credit report for 10 years, while a Chapter 13 filing (second most common) is there for seven years.

How many bankruptcy cases were filed in 2019?

There were 774,940 bankruptcy cases filed in 2019, and 97% of them (752,160) were filed by individuals. Only 22,780 bankruptcy cases were filed by businesses in 2019. The other surprise is that most of the people filing bankruptcy were not particularly wealthy.

Is Chapter 13 bankruptcy better than Chapter 13?

Chapter 13 filers weren’t much better with a median income of $41,532. Part of understanding bankruptcy is knowing that, while it is a chance to start over, it definitely affects your credit and future ability to use money.

What is the best bankruptcy for low income?

Chapter 7 Bankruptcy. Chapter 7 bankruptcy is generally the best option for those with a low income and few assets. It is also the most popular form of bankruptcy, making up 63% of individual bankruptcy cases in 2019.

How Long Will A Bankruptcy Show On My Credit Reports?

The Bankruptcy Court has no jurisdiction over credit reporting agencies. The Fair Credit Reporting Act, 6 U.S.C. Section 605, is the law that controls credit reporting agencies. The law states that credit reporting agencies may not report a bankruptcy case on a person`s credit report after ten years from the date the bankruptcy case is filed.

I want to know if I qualify for bankruptcy – what are the eligibility requirements?

Depending on the type of bankruptcy proceedings that you wish to file, there are different eligibility requirements that are set by federal law, and thus apply equally to all states. For instance, there are household income eligibility requirements for persons who wish to file Chapter 7 bankruptcy in order to completely discharge their debts.

Will I lose my house, car, and other personal property in a bankruptcy?

Not necessarily, each state has laws that determine which items or property are exempt from being taken away. For example, many states exempt personal items such as furniture and clothing. In addition, other kinds of property are exempt up to a limit.

How does a bankruptcy work if I'm married?

If you are married, you may file a joint petition. A joint petition is the filing of a single petition by an individual and the individual`s spouse. In order to qualify for a joint petition, you must be married on the date that the joint petition is filed. Unmarried persons, corporations and partnerships must each file a separate case.

Is There A Limit On The Number Of Times That I Can File For Bankruptcy?

The time periods between bankruptcies depends on the type of the previous filing and the type of new filing. If your new filing is a Chapter 7, you must wait eight (8) years from last filing of a Chapter 7, or six (6) years from last filing of Chapter 13.

Who Can File For Bankruptcy?

Any person, partnership, corporation or business trust may file bankruptcy. In addition, charitable or social organizations may also file for bankruptcy. United States citizenship is not a requirement for filing bankruptcy.

Do I need an attorney to file bankruptcy?

Federal law does not require you to have an attorney. You are allowed to file pro se, that is, on your own without an attorney. However, without the assistance of an attorney, it is extremely difficult to do so successfully.

Definition of Bankruptcy Law

• Bankruptcy is a legal procedure initiated by an individual or a business that cannot pay their debts and seeks to have the debts discharged or reorganized by the courts. The three most common types of bankruptcy proceedings are Chapter 7 individual petitions, Chapter 11 business reorganization and rehabilitation petitions, and Chapter 13wage earner's plans. Bankruptcy case…

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Terms to Know

Other Considerations When Hiring A Bankruptcy Lawyer

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