When a company or an individual is unable to repay a loan, the individual or the company is considered to be bankrupt. Sometimes companies incur heavy financial losses. For example, a printing firm gets 80 percent of its total income from a single publisher. If the publisher diverts its order to a different company, the printer loses a large portion of its total income. The printing firm becomes bankrupt.

Bankruptcy involves two parties: the debtor and the creditor. The debtor is the party in debt, who owes money to the creditor. A debtor can be a company or an individual. The creditor is an organization or individual to whom the debtor owes money. Most bankruptcy cases involve several creditors. There are basically three types of bankruptcy.

When a company is bankrupt, the trustee, a person appointed by the court, sells all of debtor’s non-exempt assets so that the debts can be repaid. This type of bankruptcy is known as liquidating bankruptcy, or Chapter 7 Bankruptcy. Individuals, corporations and partnerships file this bankruptcy.

Suppose a business or an individual is bankrupt, but continues to function, maintains ownership of all assets, and tries to work out a reorganization plan to pay off creditors. This is known as Chapter 11 bankruptcy. Usually, businesses and individuals who have unbearable debt file this bankruptcy.

An individual owns and controls his assets and works out a repayment plan with his creditors. This is known as Chapter 13 bankruptcy. Though it is like Chapter 11, this bankruptcy involves only individuals. The debtor retains control and ownership of the assets.

Whether it is a company, business or an individual, once bankrupt, the best person to turn to for advice and help would be a bankruptcy lawyer. The bankruptcy lawyer offers help to the client, who may be an individual, company or business, as described below.

He collects and files all the bankruptcy documents with the bankruptcy court. After this, the creditors are informed by the court clerk that a petition has been filed. Thereafter, a meeting of creditors is held at the court, with the trustee acting as President. It is mandatory for the debtor to attend this meeting.

After this, on the direction of the court, the trustee sells all of debtor’s non-exempt assets for the benefit of the creditors. Finally, the debtor is discharged and all debts, with some exceptions, are written off. www.floridabar.org, the official web site of the Florida Bar Association (the regulatory body of all practicing lawyers in the state), publishes several pamphlets, including one entitled `Bankruptcy,’ for the general public. The website also has a lawyer referral service to locate Bar-Certified bankruptcy lawyers in Florida.

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Bankruptcy proceedings are legal proceedings that debtors are entitled to under federal law when they are unable to pay back their creditors. Once a bankruptcy filing is made, creditors must wait for the court to decide how their money will be returned. The declaration of bankruptcy absolves the bankrupt entity or individual from the legal obligation to repay most or all debt.

The law does not require a person declaring bankruptcy to have a lawyer. However, bankruptcy filings are complicated, and it may be difficult to understand the type of bankruptcy that is most appropriate in a given situation. Certain types of bankruptcy also make assets vulnerable. Lawyers can help an individual understand the bankruptcy process. A lawyer may also be able to advise a client on whether consumer credit counseling may be a better alternative than a declaration of bankruptcy.

Of the five types of bankruptcy proceedings, the most commonly employed are Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 bankruptcy, outstanding personal debts are discharged or eliminated, essentially giving the debtor a fresh financial start. However, certain types of debts cannot be discharged, and property may not be exempt from being sold, with the proceeds distributed to creditors. Chapter 13 bankruptcy proceedings involve a repayment plan for outstanding debts over three to five years.

Friends or family members may be able to recommend a good bankruptcy lawyer. Ohio state and local bar associations can also provide contact information for lawyers who specialize in bankruptcy law. It can be expensive to hire a bankruptcy lawyer, particularly at a time when an individual may be undergoing considerable financial hardship. The Ohio State Legal Services Association partners with private lawyers to provide reduced-fee bankruptcy assistance for eligible individuals. Several organizations, such as the Columbus Bar Association’s Legal Aid Referral Project, provide pro bono legal assistance to low-income individuals who are unable to afford a lawyer.

 

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Bankruptcy is person’s legal declaration of being insolvent. Bankruptcy can be a very difficult, complex and complicated legal process, so it is very important to seek an experienced and skilled bankruptcy lawyer. New York has a vast number of lawyers and firms that are among the best for handling bankruptcy cases. A bankruptcy lawyer should be certified by the American Bankruptcy Institute in order to practice his trade. New York bankruptcy lawyers work on behalf of their clients to help in filing for bankruptcy, or getting protection from bankruptcy. New York bankruptcy lawyers review the facts, file paperwork, attend court procedures and determine the best options available for clients with respect to the New York bankruptcy law.

A client should choose a lawyer that takes care of his case in a respectful, caring and ethical manner, and protects his legal rights, assets and personal rights. Lawyers who specialize in bankruptcy cases have experience in creditor-debtor disputes that rise up in court, federal trials and state appellate courts. A New York bankruptcy lawyer can file for bankruptcy under either Chapter 7 (straight liquidation bankruptcy) or Chapter 13 (prevent mortgage foreclosures).

Some people prefer not to file for bankruptcy because there might be too many risk factors involved for them or their family. In case of such situations, a lawyer helps clients to deal with creditors, negotiate a debt settlement and arrange refinancing. A bankruptcy lawyer should have the knowledge and legal expertise of the new bankruptcy law that went into effect on October 17, 2005 and how it will affect debtor’s rights, Chapter 7 filing and Chapter 13 filing.

Some of the most prominent firms specializing in bankruptcy in New York are Orrick, Rosenberg, Musso and Weiner; Friedberg, Greener, and Cohen; Nagel Rice and Mazie, and many more.

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