Almost all consumers would agree that going bankrupt is not an experience anyone enjoys. However, in many cases, it is the only solution one has when his or her debt has reached an overwhelming level. Those who are being hounded by collection agencies and creditors, but realize that their outstanding debt is more than they can reasonably hope to pay, should avail themselves of the services of Northern Kentucky bankruptcy lawyers to discuss the possibility of filing Chapter Eleven.
The definition of voluntary bankruptcy under United States law is a process through which a corporation or individual can petition for forgiveness of debt by declaring themselves unable to repay the amounts owed. The process may also be involuntary, in which case the creditors force the debtor to answer for his or her unpaid balances. Each process is covered by Title 11 of the U. S. Code.
Consumers can file under Chapter 7, which calls for the liquidation of belongings and property to repay loans, or Chapter 11, which allows filers to pay off certain debts in the future and discharge others. Corporations typically file under Chapter 7 when they wish to liquidate, or Chapter 13 if they plan to repay a portion of their debt and reorganize their company. One should be aware of the fact that new requirements for those attempting to discharge debt were implemented in 2005.
The various options listed above were invented to solve the deadlock between consumers and lenders. They were not intended to provide a way for debtors to disregard their duty to their creditors. Rather, the objective of the process was to allow the debtor to sustain a household while offering some type of compensation to his or her lenders.
Those who are considering going bankrupt will likely agree that one of the obvious benefits is the fact that they can discharge some of their unsecured debt. Collection activity must cease when the proceedings begin, which is another advantage associated with the process. Additionally, those who go bankrupt will eventually be able to improve their credit score, as many of their open accounts are closed when the filing is complete.
As with most solutions to financial dilemmas, there are certain disadvantages associated with going bankrupt. For instance, bankruptcies usually remain on one’s credit history for about seven years. While this does not mean the person will automatically be turned down for future loans, it will make borrowing money more difficult until the case is discharged.
Although bankruptcies can be handled by the filers themselves, most individuals are not comfortable with this course of action. Filers generally feel better when legal representation is secured. When selecting an attorney to handle the case, it is a good idea for one to choose an experienced law firm that has handled bankruptcies before. It is also essential to select a lawyer with whom one feels comfortable.
Numerous Northern Kentucky bankruptcy lawyers offer free consultations during which an individual can obtain advice and ask questions. Clients should consider bringing another person to the appointment who can remind the filer of questions that he or she may have forgotten. One should also ask the attorney if fees must be paid in a lump sum or if they can be paid over time. Regardless of one’s individual objectives with regard to going bankrupt, he or she will most likely discover that the process is much less worrisome when it is handled by a qualified attorney.
Read more about Seeking The Advice Of Northern Kentucky Bankruptcy Lawyers Is A Wise Course Of Action visiting our website.