People often experience financial distress at various points of life for multiple reasons. For instance, the COVID-19 pandemic has seen many businesses collapse resulting in workers getting laid off. Declaring bankruptcy allows people to seek legal redress to structure how to settle debts owed to creditors when their liabilities exceed their assets. However, most people do not understand the various types of bankruptcy available.
People should always consult professionals for assistance when filing for bankruptcy to avoid messing up the application. Bankruptcy lawyers specialize in helping clients declare and file for bankruptcy under the appropriate chapter and are thus the best-qualified professionals to assist people filing for bankruptcy. Below are a few roles of a Chapter 13 bankruptcy lawyer:
Prevent Bankruptcy Fraud
People should always consult an experienced bankruptcy lawyer to prevent bankruptcy fraud. Bankruptcy fraud is a serious federal crime where applicants file multiple bankruptcy applications and conceal assets. People should understand that bankruptcy fraud is serious and attracts various harsh legal penalties, including jail sentences, non-dischargeable fines, and public criminal records.
Thus, clients should consult an experienced Chapter 13 bankruptcy lawyer to mitigate accidental asset concealment risks. Chapter 13 bankruptcy lawyers ensure clients declare their income, assets, and property without omissions that may result in legal woes.
Explain the Provisions of Chapter 13 Bankruptcy
People should also consult a competent Chapter 13 bankruptcy lawyer to understand the chapter's provisions. Most people are familiar with bankruptcy applications under Chapter 7, which focuses on liquidating assets to repay debts. On the other hand, Chapter 13 bankruptcy usually deals with debt consolidation and repayment under the bankruptcy court's protection and supervision.
It allows people to keep their property and assets while paying off their debt. Chapter 13 bankruptcy also has restrictions on eligible individuals. For instance, companies cannot apply for debt restructuring under Chapter 13 bankruptcy and instead use Chapter 11. Thus, people should consult Chapter 13 bankruptcy lawyers to file the right applications.
Get Legal Assistance and Representation
Chapter 13 bankruptcy proceedings are usually lengthy, complicated, and take several years. They are different from Chapter 7 bankruptcy applications, which are usually short, with the complete process lasting several months. Thus, people should consult experienced Chapter 13 bankruptcy lawyers for assistance and representation through the process to minimize errors and adhere to the provided stipulations.
Moreover, Chapter 13 bankruptcy applicants are expected to present creditors with good repayment plans outlining the monthly repayments. Thus, applicants should hire an experienced Chapter 13 bankruptcy lawyer to expedite the process and help clients with the necessary paperwork.
If you need help filing for bankruptcy, make an appointment with a law office, such as Ozment Law PA.