Filing bankruptcy is considered to be one of the most significant personal financial decisions that a person can make. Bankruptcy is when your federal government steps in to provide you with relief from all of the debt that you owe. Both consumers and business owners can file bankruptcy. The goal of filing bankruptcy is to have some or all of your debts discharged by the federal government.
The role of bankruptcy attorney is to help you understand the bankruptcy law. They will help you figure out which of your debts qualify for bankruptcy; what kind of bankruptcy you qualify for; and what assets would be protected from creditors if you filed bankruptcy. Navigating through the process of bankruptcy is not an easy task which is why law firms such as Sean C. Paul are hired in the first place. Unfortunately, there are some things that most bankruptcy attorneys fail to tell you about the process.
You are not guaranteed federal protection from your creditors; and you do not automatically have the right to get a bankruptcy discharge. Getting a discharge requires going through the bankruptcy court system and proving that you deserve the discharge. You have to fully disclose all of your debts, assets, and obligations to the court.
The way it works is the judge is going to decide whether or not you even qualify for filing bankruptcy. They may determine that you should just liquidate your assets and continue to make payments with the extra money you earn on your paychecks. If this happens, your lawyer may suggest filing Chapter 13 bankruptcy. Chapter 13 bankruptcy is also commonly known as reorganization bankruptcy. The judge is going to put you on a three to five year payment plan. During that time you would be required to pay back all of the debts that you owe. While your record is going to show that you filed bankruptcy, it is also going to show that you filed Chapter 13 bankruptcy. This tells future financial institutes you try to do business with that you did pay back the money you owe, it just took a little more time than it probably should have.
