If a person is struggling financially due to large amounts of debt, filing bankruptcy is one way of managing that debt. Laws regarding insolvency are in place in order to help those who can no longer pay their creditors, and lawyers are responsible for guiding people through the complicated filing process.
What is Bankruptcy?
Bankruptcy is a collection of laws that have been established with the purpose of providing debt relief to individuals and businesses. There are three main chapters of code, Chapter 7, Chapter 11, and Chapter 13. Additionally, financial ruin is fairly common, with individuals and large businesses alike—including Sbarro, G.M., and even the city of Detroit—announcing financial collapse.
Do I Need a Bankruptcy Lawyer?
If you are responsible for large amounts of debt and don’t know where to turn, declaring your debt may be the best option for you. However, filing is a major financial decision that has a number of long-term consequences, though, and shouldn’t be done without an experienced professional to help you along the way.
An experienced lawyer will possess a firm understanding of the laws within your state, can help you determine whether filing for debt relief is the right decision for you, can help you to file the necessary paperwork, and can present your case to a judge.
For more information about debt relief in the United States, visit http://www.uscourts.gov/FederalCourts/Bankruptcy.aspx.