Today we highlight four misconceived notions surrounding the idea of bankruptcy and also relevant points for those who decide that bankruptcy is a viable option to consider. As a bankruptcy lawyer Middletown, CT residents prefer from The Law Offices of Neil Crane can explain, the public perception of bankruptcy has become distorted into being viewed as a negative thing. Although the circumstances that lead an individual to declaring bankruptcy are widely varied and in most cases a result of serious challenges, bankruptcy itself can be viewed in a positive light.
The vast majority of debtors for whom bankruptcy is viable will find the assistance of an experienced bankruptcy lawyer to be both necessary and their skills to be invaluable throughout the entirety of the process. As an experienced bankruptcy lawyer from The Law Offices of Neil Crane can explain, candidates for bankruptcy more often achieve the most desirable outcome with the assistance of a qualified professional.
They will be responsible for developing a strategy that meets the individualized needs of each client, and will help ensure accuracy throughout every step of the process. Continue reading if you are in the midst of serious debt, but are skeptical about initiating bankruptcy because of things you have heard.
The needs of each debtor are highly individualized and circumstantial.
The process of filing for bankruptcy will look very different for a business compared to the filing process for an individual. The viability of bankruptcy as a tool for finding relief from overwhelming debt depends on specific needs of each bankruptcy candidate. Net income, total debt, family size, and age are all factors that influence the decision of which path to take.
Individuals who file for bankruptcy may be able to keep their most valuable assets.
Another common misconception about the consequences of bankruptcy is that everything will be lost to the process. Chapter 7 bankruptcy, sometimes referred to as liquidation bankruptcy. The name suggests that assets of the debtor are to be liquidated, or otherwise sold for the purpose of generating funds to repay the creditors or banks to which the debtor owes to. However, debtors filing for Chapter 7 are in most cases able to keep their property that might not have sufficient resale value.
Through Chapter 13, debtors with high value assets can keep their assets.
When a debtor has assets that qualify for liquidation under Chapter 7, they may also qualify for Chapter 13. Chapter 13 bankruptcy enables the debtor to propose a plan for repaying outstanding debts without having to yield their most valuable property and assets to the creditors or banks which debt is owed to.
Bankruptcy empowers those who are facing potential financial devastation.
Regardless of the circumstances that lead to a debtor’s bankruptcy declaration whether avoidable or unavoidable, the process is a chance to commit to resolving conflicts and embark upon a path to recovery.
By declaring bankruptcy, the possibility for threats of legal action against a debtor by creditors diminishes substantially, effectively empowering the individual. A bankruptcy declaration indicates the debtor is being proactive about their financial predicaments and are taking steps towards resolution.
Ultimately, bankruptcy is a useful tool for those facing serious financial hardship to make a legal commitment to resolution of outstanding debts by means of a concise plan. The laws and regulations do vary widely by state. With that in mind, debtors who are considering bankruptcy will benefit from consulting with an attorney to learn how the laws may apply to their unique situation.