Bankruptcy is a legal process through which people and businesses can seek to obtain a fresh financial start when they are having financial difficulties and are unable to pay their debts as agreed. When a business files bankruptcy it can be for one of two reasons. One, they actually mean to liquidate and close their doors or two, they are buying themselves more time with their creditors to be able to pay off existing debts. When a person files for bankruptcy, a court eliminates either or part of the existing debts under types of chapter in which they came.

The process is also designed to provide a measure of protection to creditors. Secured creditors are often in a better position than unsecured creditors because they hold lien on the property of the debtor that supports the right to payment.

Whole your bankruptcy case is pending, most creditors cannot try to collect their debts from you directly. They also may not attempt to collect any and all discharged debts excused by the court. However, not all debts are discharged.

There are several causes of bankruptcy. Approximately 90 percent are the result of unemployment, medical bills, or divorce. Every individual situation is different, though a common feature of many bankruptcies are a large amount of debt or credit cards with high interest rates. Filing for bankruptcy is a very personal, serious decision. Most people file when they see no other way out of debt. Once the decision has been made, the company or individual may declare bankruptcy by petitioning the court. This is a request for protection and relief under the bankruptcy code. The person filing for bankruptcy must provide information about his and her assets, liabilities, income, and expenditures. They also must verify that they have undergone credit counseling within the allotted time.

Bankruptcy stops most garnishments, although it depends on why you’re being garnished. What you will be allowed to keep will depend largely on your state laws. Some states allow you to keep all of the equity in your home, while others exempt a certain amount.

There are several Advantages to Filing Bankruptcy:

• A fresh start to your financial life • Collection efforts are stopped upon filing • Stops wage garnishments • Can keep all or at least some of the equity in your home

There are also some Disadvantages to Filing Bankruptcy:

• Stays on credit record for years to come • Makes getting credit harder if not impossible • May lower opinion of ones self worth

If you decide to file, you definitely need an experienced bankruptcy attorney. Steer clear of petition preparers, typing services or paralegals. And if you are even considering filing on your own, remember the old adage that a man who acts as his own attorney has a fool for both an attorney and a client.

Experienced Lawyers – A Big Help Chapter 13 bankruptcy and Chapter 7 bankruptcy are the most common consumer bankruptcies. There are experts who exclusively handle such cases and can thus aid you in getting the most accurate legal aid when you file for bankruptcy. These attorneys can help you fight in order to protect your property and rights. They help you to settle your debts with your creditors in a manner that is agreeable for all. Bankruptcy lawyers can thus help you to salvage your vehicle, home and other assets. Such lawyers are committed to acquiring debt relief for you and providing the necessary advice, services and information that is required for you to achieve a better financial future. It is easy for you to get a professional from the directory by clicking on a specific state or province.

Reasons To Opt For An Attorney If you are in a position where you find that making the minimum payments itself is a struggle and you find yourself lagging behind each month, then it makes more sense to call a bankruptcy attorney. He or she can help you to make good decisions for the future and can help you to decide whether filing for bankruptcy is helpful in your current financial scenario or not. Although there may be many other resources, which provide helpful information, the help of an experienced attorney can often be invaluable. A professional can help you view your financial position in an objective manner, educates you on the differences between Chapter 7 and Chapter 13 and can, in short, help you to make your next move.

A Chapter 7 bankruptcy can help in eliminating most of your unsecured debts like medical bills, unsecured personal loans and credit card debts. An experienced attorney can help you to determine whether Chapter 7 or Chapter 13 bankruptcy is appropriate for you and also helps in explaining the automatic stay provisions of the law.

After having already been through a Chapter 7 Bankruptcy when she was separated from her husband, Yvonne went looking for help to save her home for her children. She found Robert A Higgins, a bankruptcy attorney and founder of Robert A. Higgins & Associates.

Higgins helped Yvonne file Chapter 13 bankruptcy in order to reorganize her debt and keep her family in the house that they have called home for the past 13 years.

“I only fell behind by a couple of months. I was trying to work with them. Then in June I just couldn’t keep up, and they told me that they were ready to start foreclosure proceedings at the beginning of August,” she said. “I had to do something to protect my home.”

Yvonne and her family are not alone. In North Texas, over 2,500 homes a month are scheduled for foreclosure.

It may not seem like the best option to file bankruptcy, but Chapter 13 protections in Texas can save a home from foreclosure and allow homeowners who may have fallen behind some time to catch up with their obligations.

State bankruptcy exemptions in Texas include the person’s homestead, up to 10 acres, in a city or town and up to 100 acres in rural areas (200 acres for a family farm).

“The law was created to protect home and hearth,” said Higgins. “As a bankruptcy attorney the most satisfying part of my job is helping hard working people keep their homes.”

Higgins and his firm represent hundreds of bankruptcy clients each year.

“Even in good economic times, a family illness or dispute can force people into a financial crisis,” Higgins explained. “Bankruptcy law is there to help someone who is at risk of further victimization from their situation.”

And Yvonne appreciates the help.

“I had tried to file with another attorney before I contacted Higgins & Associates,” she said. “The case was dismissed and I never heard from them again. Higgins & Associates has been a lifesaver for me.”

In the 12-month period ending in June, 934,009 personal bankruptcies were filed in the United States. Of those, 8,585 were filed in the Northern District of Texas, which includes Fort Worth and Tarrant County.

The number of bankruptcy filings in Texas’ Northern District was up 6.1 percent in that 12-month period, according to information released by the courts.

“It seems like more and more people are getting in over their heads,” Higgins said. “I see several things that are to blame, divorce, loss of job, medical bills, loose lending standards, predatory lenders or the borrower that didn’t really know how far in debt that they were getting are some of the more common situations. What matters is that there is a way to get out of this mess.”

Robert A. Higgins is a leading bankruptcy attorney in Fort Worth and founding partner of Higgins & Associates, a firm that has helped thousands of clients protect their assets through personal bankruptcy filings.

For more information and for contact information for persons mentioned in this release, contact Robert Higgins at 817-228-0490 or email robert@higginsandassociates.com.

A law forum that deals exclusively in bankruptcy and debt consolidation is better equipped to deal with both chapters 13 bankruptcy and chapter 7 bankruptcies. The yellow pages are a helpful source to find bankruptcy attorneys who are categorized by their field of specialization. Another way to find a qualified bankruptcy lawyer is by referral from those who are more familiar with the field and other attorneys who might make some helpful recommendations.

Due to the duty of confidentiality, the lawyer cannot share information about their current or past clients unless permitted to do so. Talking to close and trusted family friends who can guide the right direction might be of great help. This gives an insight into the lawyer’s competence. The attorney should be considerate about the client’s problem and make him feel comfortable. It is also necessary that the attorney is organized and punctual and work well together.

While the initial consultation is free, the client should honestly explain his or her situation to the lawyer and the lawyer should give a feed back on the situation and on the option thereon. While conversing with the lawyers, the client should find out how long he or she has been practicing the specifics of their specialization, number of cases handled by them approximately and expectation from the attorney in terms of representation. Also, it should be ascertained whether the attorney will personally attend the case or pass it on to a junior lawyer or staff. All such questions can be asked and the Attorney should make sure that the client is comfortable for appointing him or her as the bankruptcy lawyer.

Bankruptcy attorneys specialize in bankruptcy laws and provide legal methods to either wipe out debts by liquidating assets and distributing them among creditors or resolve them by developing a court approved reorganization plan. Bankruptcy lawyers explain the main purposes and application of bankruptcy laws and how they function to relieve the individual and business from indebtedness. A disclosure of all the financial affairs is extremely important in a bankruptcy setting. The lawyer should be kept informed of all the facts. In the worst scenario, failing to disclose information to the court could be a crime. Written documentation of debts and liabilities is important in bankruptcy setting. Bankruptcy lawyers usually specialize either as debtor’s counsel or as creditor’s counsel. Debtor’s counsel will usually charge a flat fee for a single bankruptcy. Creditor’s counsel usually charges on an hourly basis. For filing bankruptcy, hiring debtor’s counsel will hopefully be a one-time experience;

A lawyer may give alternatives as to what can be done and should discuss the possible consequences of each option. If the house is in foreclosure, the need to file a bankruptcy petition is imminent and therefore by the need of the meeting, there should be clear understanding of what has been accomplished.

Where are they located for one? If you want an attorney that is close by, you can look online or in your local phone directory. You do not have to settle for the first one you find, but you can call and ask for a brochure for more information about what they offer and prices. The price as well as how you pay them will be another consideration when looking for a bankruptcy attorney. It is not unusual for a bankruptcy lawyer to charge twenty-five hundred dollars with half of the money upfront to start the process. You will also need money upfront for the filing fee, credit-counseling fee and the financial counseling at the end of the bankruptcy process. The remaining balance due to the lawyer for a chapter 13 is added into the monthly payment plan. For a chapter 7, some lawyers, however rare, will take a payment plan for the remainder of their fee or require payment before the discharge date.

You will want to look for a bankruptcy attorney that has time to devote to your case and not pass you off to an associate or paralegal. This question is something you need to ask before selecting an attorney. You can ask friends or family for a referral. You can ask the court of courts secretary in your community for a list of reputable lawyers.

You should do some research before hiring a bankruptcy attorney. If you see a lawyer on television, that does not mean you are going to receive the best lawyer. When you are selecting a bankruptcy attorney and they offer to do your bankruptcy for a thousand dollars cheaper than the normal fee of other lawyers is not a good reason to select that attorney. It is a good sign that you need to look somewhere else. Bankruptcy is a lengthy process and twenty-five hundred dollars is a fair price for the time involved. By asking for pricing plans and information on services offered, you can judge which attorney would be right for you. Take you time to check different attorneys and do not settle for the first one you find.

You can look for a bankruptcy attorney that you feel comfortable around. After all, you will be spending some time with the lawyer and supplying all you personal information. Remember one thing when looking for a lawyer. A cluttered office does not make for a good lawyer. You want a lawyer that is tidy and is less likely to misplace your personal documents and information. Look for one that is close enough to you or close to the area where the courthouse is to save some time and money. It is always a good idea to make sure they are a good bankruptcy attorney before deciding. 

Remember to keep these tips in mind. They will help you find the right attorney for you during this difficult time.

The first and foremost step to be taken by a bankrupt person is to file for bankruptcy through the bankruptcy court, which is a legal process. The next step is to complete the bankruptcy forms called the “schedules” wherein the debtor should describe his or her current financial status and recent financial transactions. The debtor has to choose between chapter 7 and 13. For filing chapter 13 bankruptcy, a proposed repayment plan must be submitted with the petition. Filing bankruptcy can be done by talking to people who have technical information about bankruptcy or better still to visit a bankruptcy lawyer who can guide through the complicated procedure of filing for bankruptcy. The lawyer should be provided with all the personal information to put together and file the voluntary petition.

Once this process is over, the bankruptcy court assigns a trustee to see to it that all the informations are collected and that they are accurate. The next step is to notify the creditors that the debtor is filing for bankruptcy so that they stop all actions they might be taking up against the debtor to get the payments. After this, the next procedure is meeting the various persons who are involved in the bankruptcy case along with creditors and if possible, their lawyers.

An automatic stay goes into effect immediately upon filing the petition with the bankruptcy court which prevents the creditors from making direct contact or staking a claim to any of the debtor’s property from the date of filing. Approximately, a month after filing the bankruptcy petition, the trustee will call the first meeting of creditors, which is known as 341 meeting that requires the presence of the debtor. It is an open opportunity for creditors to question and the debtor is required to respond in full faith.

A creditor must file a proof of claim within 90 days after the first date set for the meeting of the creditors. If there is an excess asset after all the claims are settled, the court may grant an extension of time for filing of claims during the 90-day period. Objections if any are resolved by a negotiation between the debtor and the counsel of the debtor and the creditor. A judge will intervene, if necessary, when a compromise cannot be reached. If there are no hiccups, the debtor receives a notice from the court that the bankruptcy is discharged within 4 to 6 months.

Student loans guaranteed by the government are not dischargeable, that is the student continues to be liable for the payment even if he files bankruptcy. The debtor’s goal is to have as many debts discharged as possible. The ten categories of debts excluded from discharge are divided into 2 areas: debts that are not dischargeable due to the wrongful conduct of the debtor and debts that are dischargeable due to public policy.