Bankruptcy is a legal procedure in which an individual or organization can make a declaration that they are not able to pay their bills or meet their legal debts and obligations.
There are severe penalties for declaring bankruptcy. A person’s credit will be damaged for many years and it will be very hard to get consumer loans after a bankruptcy filing.
The two most common types of bankruptcy are known as Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, many of the individual’s debts are cancelled, but he or she will have to relinquish property in order to pay as much of the debt as possible. In Chapter 13 bankruptcy, a person can reorganize their debt so they can pay it off in a three to five year period.
A bankruptcy lawyer is a lawyer who is experienced in helping people navigate the complex procedure of a bankruptcy declaration.
What Kind of Arrangement Will My Lawyer Require?
Chapter 13 bankruptcy lawyers will often allow clients to pay the legal charges as part of their repayment plan. Clients may not need to come up with a deposit at all in some cases.
Chapter 7 bankruptcy cases range from a few hundred to a few thousand dollars. These lawyers can charge flat fees or work on retainer. A retainer is a deposit against which the lawyer bills work as it transpires. Any remaining amount is returned to the client after the case is over.
Which Fees Will My Lawyer Charge?
Lawyers will charge legal fees as well as court fees for bankruptcy proceedings. Filing fees, photocopy fees, and records fees may also be charged depending on the nature of the case.
Do I Need a Lawyer?
Yes. Bankruptcy has such long-standing consequences that it is very important that the procedure be done legally and correctly. A bankruptcy lawyer will help you get the best bankruptcy deal possible.