Bankruptcy is becoming an increasingly common occurrence in today’s society due to the downfall of the economy and resulting surge in unemployment rates. Many individuals who once lived comfortably on their salary are finding themselves unable to pay the debts they accrued before losing their jobs or experiencing a decrease in their income. Those in such a situation may seek the assistance of a Bankruptcy Attorney in Carlisle.
With Chapter 7 Bankruptcy, a debtor must usually receive debt counseling prior to filing. If financial difficulties can not be resolved through counseling, the individual may then proceed with filing his case. The debtor must provide a bankruptcy attorney in Carlisle with a complete list of all his creditors and the amount and frequency of payments owed.
The debtor must also supply his attorney with his income and pay schedule; in addition, he must create a list of any property he currently owns. Any assets, such as land, vehicles and other property, owned by the debtor will be sold. Money received through this liquidation process will be distributed among those the debtor owes. Property that is still being paid for is exempt from liquidation. If the funds received through liquidation fail to cover all debts, the remaining amount owed will generally be discharged.
Chapter 11 Bankruptcy is typically filed for by businesses. This branch of Bankruptcy is basically a reorganization of debt. Businesses who are unable to pay their debts may, with the help of a bankruptcy attorney in Carlisle, form a plan for repaying their debts. They present their plan to the court and await approval from their creditors. In some cases, the business’s creditors may counter with an alternate plan for debt repayment. This is the most lengthy and expensive form of bankruptcy, so most attorneys recommend Chapter 11 as a last resort only.
By filing for Chapter 13 Bankruptcy, an individual and his Bankruptcy Attorney in Carlisle can put an end to further collection attempts and halt any looming foreclosures or repossessions. The individual filing for Chapter 13 will present his attorney with the debts he owes, his income and living expenses. He will receive an allowance for necessities and the remainder of his income will be distributed among his creditors.
Filing for bankruptcy with the help of a professional, such as Attorney Steven J. Schiffman, can help resolve debts and allow individuals to make a fresh financial start.
