Bankruptcy is not an easy matter to deal with. Whether it’s you or your business that went under, bankruptcy is something that you should carefully navigate. This may be a sad and tormenting stage of your life, but on the brighter side, it will allow you to start over with a clean slate. And to help you through the process, think of hiring a Florida Bankruptcy attorney. Yes, you can take matters into your own hands and resolve the process by yourself, but some legalities and circumstances are best dealt with with the help of a lawyer.
If a person or legal entity can no longer repay its debts, one of the legal remedies available to them is to file for bankruptcy. The debtor usually launches the filing of the petition. However, in rare cases, the bankruptcy petition can also be filed on behalf of one’s creditors. In that case, the debtor’s assets and properties will be evaluated to see which can be liquidated to pay for their debts.
Why do you need to hire a lawyer?
One of the most obvious reasons you need legal counsel in a bankruptcy proceeding is that it’s a legal procedure. Aside from the petition filing and property evaluation stages, the debtor will need to face the federal court, wherein the former will be asked to lay their repayment plans. Although the debtor is the best person to determine their financial circumstance, a lawyer can protect their interest against his creditors and from liens and encumbrances attached to their properties.
A lawyer can help you prove that you’re eligible to file for bankruptcy
Not everyone who wants to file for bankruptcy gets approved by the court. Being a legal proceeding, one needs to present their case before the federal court and sway the judge to rule favorably on their eligibility. If proven under the circumstances, the judge can also rule that the debtor can be discharged of his debts. These can be done with the help of a lawyer.
Apart from that, creditors can file a motion to pierce the corporate veil in cases where the bankruptcy petition is filed on behalf of one’s business. In that case, the debtor’s personal properties can be used to satisfy the corporate debt. Without the help of a lawyer, the debtor can run the risk of losing all his assets to the company’s creditors.
A lawyer can help you come up with a less burdensome debt payment plan
There are different types of bankruptcies under the Bankruptcy Code, with bankruptcies under Chapters 7 and 11 as the most common. Under the former, the debtor is allowed to sell their assets to repay all their debts. If the debtor has no valuable properties and only has exempt ones, they can be legally exempted from paying their unsecured debts.
On the other hand, under Chapter 11, businesses can file for bankruptcy to reorganize and start over. Here, they’re allowed to draft plans to help the business become profitable again. The company will continue to operate, except they can now raise their rates, add more services, or do anything legal to raise their revenue. They will do so under the court’s supervision.
Apart from these two, there are also instances wherein the debtor receives a discharge order that frees them from their debt liability. However, not everyone is entitled to be fully relieved from debts. With the help of a lawyer, you can establish your factual circumstances and secure the most favorable debt repayment option from the court. Not only that, with the help of a lawyer, you can even petition to be free from your financial obligation.
A lawyer can keep you on top of the whole proceeding
One thing’s inevitable when you’re going through a bankruptcy proceeding — there will be tons of paperwork to comply with and court sessions to attend. If you add these to the overwhelming feeling of going through a legal battle, it would be hard to keep up. However, if you have a lawyer working with the case, you can focus on your personal circumstances and think of a better life after the bankruptcy proceedings.
A lawyer can neither solve your problems for you. Nor can they rule in your favor in a bankruptcy proceeding. However, their presence and wise counsel can tame your anxious thoughts and grant you that peace of mind to calmly navigate through the legal storm.