A bankruptcy lawyer is not required by law in bankruptcy filing cases but they can help to simplify the process of filing with the bankruptcy court. Bankruptcy is defined as the inability of a debtor to pay their creditors because of a lack of finances. Individuals and corporations can file bankruptcy either voluntarily or involuntarily. Voluntary bankruptcy is when the individual or corporation decides to file on their own while involuntary bankruptcy is when the creditors of a debtor file a bankruptcy petition against the debtor. The two most common forms of bankruptcy are Chapter 7 and Chapter 13 for individuals and Chapter 11 for businesses. Anyone that is filing for bankruptcy, no matter what type, should consider hiring a bankruptcy lawyer. A bankruptcy lawyer can provide many services that a party filing for bankruptcy and representing themselves cannot.
Services a Bankruptcy Lawyer Provides
A bankruptcy lawyer will also help to protect the debtor from being harassed by the debtor's creditors. Once a debtor files for bankruptcy they are to contact their creditors and inform them of the filing. Once the creditors have been notified of the filing they must stop trying to obtain payment from the debtor immediately.
A bankruptcy lawyer will protect a debtor from what he or she does not know. There is a statute of limitations placed on different forms of debt. Some debts have a statute of limitations of 15 years. If the debt is 15 years or older it cannot be filed in a bankruptcy case. A lawyer will inform their client of this and save them from wasting their time and money.
When filing for bankruptcy a bankruptcy lawyer will be able to simplify the process and help to alleviate the stress associated with the filing procedure.