When deciding whether or not to file for bankruptcy, the first question you should ask your bankruptcy attorney is whether he or she specializes in bankruptcy law. An experienced bankruptcy attorney will know all of the ins and outs of the bankruptcy process and can assist you in making the right decision. Many attorneys will also have personal experience with bankruptcy laws since they often practice before the court. If you don’t already know an experienced bankruptcy attorney, ask for an attorney referral.
A bankruptcy attorney specializing in this area of the law is usually a plaintiff’s lawyer. This is because these lawyers handle the most cases of all bankruptcy attorneys. A plaintiff’s lawyer has to prove that the defendant (the debtor) is insolvent. In California, the law specifies that the debtor must have the “inability” to pay. After filing bankruptcy, the creditors cannot ask their client to pay back what they owe to them until this happens.
A plaintiff’s attorney will also represent the debtor in a legal process called debt settlement. The process is the reduction of the debtor’s debts by half or less than half. An experienced bankruptcy lawyer will work hard on this case, to get the best possible result for his or her client. The results of this settlement are always favorable for the debtor.
Another important aspect of working with a bankruptcy attorney involves filing for bankruptcy protection. Most bankruptcy attorneys must file for protection under the provisions of a law called the FRCPA. This is the Fair Credit Reporting Act.
To begin the bankruptcy process, a client may contact an experienced bankruptcy attorney. These legal experts are trained to help people with their bankruptcy problems. They can explain the different steps involved in a bankruptcy process. They can also show clients how they can protect their credit and assets during the bankruptcy process.
Once the client begins the bankruptcy process with a bankruptcy court, he or she will need to obtain some forms from the court. These forms are called filed applications. They are needed because the creditors will not be able to collect any money from the debtor until all the debts are settled. After obtaining these forms, the attorney can begin preparing the petition for the distribution of these funds.
Once the petition for distribution has been filed, it can only be distributed to the creditors who have filed for bankruptcy protection. This distribution is usually done via the local distribution center. If the request for distribution is made through the Federal Court, the case will then proceed to the bankruptcy court that handles the cases of all other creditors. The bankruptcy attorney for the debtor will then take care of getting all the debts settled.
To make sure that the creditors are really willing to settle the debts, the attorney will also need to prepare and file for an automatic stay. This is a temporary restraining order that prevents the creditors from harassing or mailing harassing letters after the court has distributed the funds. Aside from these forms, there are also other filings that the attorney needs to do in order to properly represent the client and settle the debts. Fees for services provided include the filing fees, the attorney’s professional fees, court fees, and other miscellaneous fees.
Preparing financial statements. The bankruptcy attorney must prepare a detailed financial statement for the client and provide it to the client for review. The statement should contain information about all property owned by the debtor, including salaries and stock options. This will enable the debtor to decide if he wants to sell his property or use it as a valuable asset. It will also show the value of the debtor’s retirement assets, if any, as well as other assets that could be used to discharge debts.
Filing bankruptcy forms. The bankruptcy attorney also has to file for various types of bankruptcy forms, including: personal bankruptcy forms, business bankruptcy forms, income tax returns, IRS forms, and so on. These forms are essential to empower the debtor and enable him or her to take back control of his or her life. A bankruptcy attorney may even have to represent the debtor in negotiations with the other creditors.
Discharge of debts. In personal bankruptcy cases, the debts of the client are discharged upon successful filing. Business bankruptcy attorneys are not required to discharge the debts in such cases. On the other hand, income tax attorneys are obligated to do so in cases where the clients fail to pay taxes (including payroll taxes) for the previous three consecutive years.