Bankruptcy is a legal term for describing an official statement that an organization or individual can not repay its debts. Sometimes in an attempt to recoup a portion of the debt owed to the borrower, creditors may file a bankruptcy petition against a business or corporate debtor. This is commonly referred to as a “involuntary petition for bankruptcy;” however, the debtor completes most bankruptcy filings in a “voluntary petition for bankruptcy.” In either case, the debtor will need legal representation to navigate the legal system and learn and exercise their rights in the bankruptcy court.If you are looking for more tips, check out Butcher Law Office, LLC
Initially, petitions for bankruptcy were created as a means of satisfying creditors; debtors had little to no rights. In early bankruptcy practices, if they couldn’t negotiate an appropriate repayment plan, the creditor was allowed to seize the debtor’s belongings. Alternatively, the debtor may face imprisonment to satisfy their debts. Today’s bankruptcy laws are more favoured towards the debtor and there are bankruptcy attorneys who can file the motions you need to settle the debts. While bankruptcy laws have become more friendly towards debtors, they have also changed again recently to avoid making the process too easy for debtors to avoid repaying their debts.
In today’s economic climate, bankruptcy has become rather common. A lawyer specialized in bankruptcy filings has expertise in bankruptcy proceedings in various aspects. Such proceedings may include reviewing the client’s assets, attending bankruptcy hearings and negotiating with creditors on a repayment plan. Debtors can also face other legal issues related to their bankruptcy filings including repossessions, foreclosures, garnishment of salaries, liens, and litigation against creditors.
A bankruptcy lawyer works to liquidate properties for their client and to pay for their estate. They are also charged that their client’s assets are properly used to repay their creditors. In many cases, bankruptcy attorneys may temporarily halt foreclosures, repossessions, and employee compensation or wage garnishment when renegotiating repayment plans with creditors from their clients. During this time , having a bankruptcy lawyer is worth the cost of the lawyer, because they can help relieve some of the stress associated with managing the debt and navigating the legal system to do so.