Bankruptcy is when someone can’t pay their debts to creditors. A bankruptcy lawyer usually fixes this. The process of declaring bankruptcy is legal. It might ease your stress, help you pay off your debts, and clear the slate so you can start a fresh chapter of your life.
Key concepts to keep in mind while studying Bankruptcy
The person or company will stand up for the creditors before the bankruptcy court. The judge will choose this person or group to do this job. This person is in charge of looking at the petition the debtor sent in, selling any assets, and giving the money to all the creditors. A trustee is responsible for keeping track of the debtor’s payment plan. Furthermore, Collect the payments the debtor has already made and give them to the creditors.
Bankruptcy lawyer
A bankruptcy lawyer is a legal advisor who makes bankruptcy papers for a client and presents them in court. He should be qualified to have a law degree and a licence from the state where he is conducting his business.
What bankruptcy lawyer can guide you?
- Whether to file a bankruptcy?
- Which type of bankruptcy to file?
- How does the bankruptcy process work?
- Which court-provided forms needed to be completed?
- Which types of finance lawyers are amenable to reduction or cancellation?
- Whether you’ll be able to hang it on your property when the case is finished?
- Expectations from a bankruptcy lawyer?
- The written agreement between client and lawyer?
- Description of payment agreements?
- Ongoing discussions
- An agreement about how the lawyer will update you
- When to hire a bankruptcy lawyer?
- When you are not able to deal with bankruptcy cases
- You’re worried about paperwork.
Credit Counseling:
How often can bankruptcy be filed? You have to talk to someone from a non-profit group that helps people with credit and money problems. This meeting can be one-on-one or with a group. To get your bankruptcy over with, you’ll have to take a course on handling your money well after you’ve turned in your paperwork. Both of these requirements might not have to be met in certain situations.
Discharged bankruptcy:
When all of the steps in the bankruptcy process have been completed, the bankruptcy is said to have been discharged. This indicates that all your assets have been sold, so payment creditors are paid. The bankruptcy has been “discharged” when it has been successfully completed. But this doesn’t always mean that you’ve taken care of all your financial obligations. It’s what happens when all the steps of your plan to pay back the loan have been done right.
Exempt property:
Even if you file for Chapter 7 or Chapter 13 bankruptcy, you might have to sell assets to repay creditors. However, some kinds of property might not have to be sold. Generally, a debtor may not have to give up things like work tools, a personal vehicle, or equity in a primary residence. This depends on the laws of the state where the debtor lives.
Lien:
A legal process that gives a creditor the right to seize, keep, and sell a debtor’s property as payment or as security for the debt. This authority can be granted in exchange for payment of the debt.
It is possible to obtain this authority in exchange for the debt payment or as security for the debt. The utilisation of this privilege is predicated on either the full payment of the debt or the provision of security for the obligation. At least one of these conditions must be met before a person can utilise the privilege. The fulfilment of these conditions is necessary before one can take advantage of this privilege. This tactic is also known by various other names, some of which are used significantly more frequently than others.
Liquidation: The sale of a debtor’s non-exempt property. As a result of the sale, the assets are converted into cash, then distributed to the creditors.
Means test:
The Bankruptcy Code says that people who want to file for bankruptcy must show that they can’t pay back their debts. The goal of this rule is to stop people from taking advantage of the bankruptcy code in any way.
The test looks at a person’s income, assets, expenses, and unsecured debt, among other things. If a debtor doesn’t meet the requirements of the means test, their case could be thrown out or changed.
Reaffirmed account:
You can agree to keep making payments on a debt that may ultimately be discharged due to the proceedings. Reaffirming the account and promising to pay the debt is usually done. So that the debtor can keep a piece of collateral, like a car, that would be taken as part of the bankruptcy process.
The car would have been repossessed if the debtor had not reaffirmed the account and their commitment to pay the debt.
Secured debt: Debt is secured by an asset that can be reclaimed. The value of your home can be used as security for your mortgage, and the car can be used as security for an auto loan.
Both of these kinds of loans fall under the category of being called secured loans. If you cannot keep up with the payments on a secured loan. The lender has the legal right to seize the collateral put up as security for the debt. If you cannot keep up with the payments on an unsecured loan, the lender does not have this legal right.