Bankruptcy Lawsuits: For many, bankruptcy is an unpleasant word. However, it's important to remember that filing for bankruptcy on your own is still legal. The key to filing for bankruptcy is to start the process early enough so that you can avoid the long drawn-out court proceedings. Once you begin the process, however, it becomes very difficult to proceed without the assistance of a bankruptcy attorney.Filing Bankruptcy By Yourself. Bankruptcy applications can be done without a bankruptcy attorney as well. This kind of filing is called self-proving bankruptcy. When you don't have many assets, and/or your financial situation isn't complicated, this form of filing is sometimes viewed favorably by the courts.
Declaring Chapter 7 Bankruptcy: For most, declaring chapter seven bankruptcy is the preferable method for resolving short-term debts. Chapter seven bankruptcy involves liquidating non-exempt assets (e.g., stock or business loans). This enables the debtor to pay off the debts in one lump sum. However, in order for this method to work, the debtor must declare the bankruptcy during a state period wherein the courts are allowed to regulate the distribution of proceeds.
The advantage to declaring bankruptcy attorney is that they have access to a variety of tools through which to analyze your financial situation. They can also advise you on how best to deal with the debts that you currently have. There are many debtors who were initially able to obtain approval to file bankruptcy cases because their financial situation was considered fairly poor and it was subsequently found that they would likely struggle to continue with paying their debts in full. For this reason, many debtors look towards declaring bankruptcy to quickly eliminate their financial hardships.
One of the many bankruptcy pros is that the attorneys usually work well with the creditors. They will negotiate with the creditors to cut interest rates or eliminate late fees. Once this has been done, it is likely that the creditors will agree to a reduction in the overall amount owed as long as a substantial amount of money has been set aside. In some cases, the creditors may even agree to settle the debt for a fraction of its original value. While this may seem like a bad deal for many debtors, it is a better alternative than risking a potential bankruptcy case and having the case dismissed.
The disadvantages of this method are relatively few. The main disadvantage is that the court system can quickly impose a large amount of financial penalties on the debtor if they fail to follow the terms of the settlement agreement. Another disadvantage is that the creditor's interest will likely suffer should you not be able to repay the debt on time. Although the disadvantages of filing chapter 13 bankruptcy do outweigh the benefits, it is always a good idea to work with an experienced attorney who can explain the ins and outs of the bankruptcy process.