It is not news to anyone how much America has been shaken by the financial turmoil of the past couple of years. Entire industries and cities have been redefined by the consequences of the Great Recession, as it has been called. Few locations can say that they were barely affected. Nonetheless, some people were victims of the upheaval of the real estate market and company layoffs. Many in that group are looking for the services of Bankruptcy Lawyers. A reputable Bankruptcy Attorney can make a great difference in the outcome of their difficult financial situation.

If you are thinking of declaring yourself bankrupt, it is probably because your debts represent more than your net worth. That is why it is important for you to know that paying debts is an obligation for individuals, as well as businesses. The provisions the government made for when you are not able to pay them is what bankruptcy proceedings are about.

Through these proceedings you protect yourself from your creditors by avoiding the lawsuits that they would inevitably file against you. You will be able to protect your properties and retain possession of your assets. What you will not be able to do is evade criminal prosecution, cancel tax obligations, or excuse yourself from paying child support or alimony.

Different kinds of bankruptcy are available to the public according to their personal circumstances:

– Chapter 7 – This is the most uncomplicated of them all. An individual, a married couple or business partners can apply for this proceeding. The first step is an interview with a representative from a Credit Counseling Agency. Afterwards, an application is filed and an appearance in court takes place. The whole process takes an average of three and a half months and, once it is done, the individual will be declared free from past unsecured debts. Afterwards, a trustee will identify which of your assets will be exempted from bankruptcy. The rest of is sold and distributed among your creditors.

– Chapter 9. This type is a lot more complex than the other bankruptcies. It is basically for a municipality, such as a political subdivision or a public agency.

– Chapter 11. This type generally applies to business corporations. The corporation itself comes up with a reformation plan. In it, they might try to recover the productivity of the business, consolidate debt, or take actions meant to generate additional funds.

– Chapter 12. This type is exclusively for family farmers and fishermen. In this case, assets are lost and debts are paid out of future earnings.

– Chapter 13. This type is similar to a Chapter 12. It differs in that here, you are allowed to keep your property and pay debts out of your future salary. You can use at least 10% or more of your income to fulfill payments.

An experienced and knowledgeable lawyer can help you navigate the waters of bankruptcy and help you come out with a clear action plan to get your head above the water.

Author Bio: Stewart Wrighter recently spent time researching bankruptcy with the help of Columbus Bankruptcy lawyers. He hired a Columbus Bankruptcy attorney to help his brother with his financial troubles.

Category: Finances
Keywords: Columbus bankruptcy lawyers,Columbus bankruptcy attorney