Chapter 7 Bankruptcy Attorney
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Filed under Bankruptcy
A Chapter 7 bankruptcy attorney assists individuals or businesses in filing petitions. With excellent knowledge of related laws and possible alternatives, a bankruptcy lawyer is essential for smooth running of any legal proceedings in bankruptcy.[br]
Chapter 7 Bankruptcy Attorney: Role
When it comes to legal complexities, hiring a Chapter 7 bankruptcy attorney is inevitable. A Chapter 7 case, attorney performs the following functions:
- Analyzes financial situation of the debtor in light of the legal eligibility for filing bankruptcy.
- Advises debtor to undertake credit counseling sessions as a pre-requisite for Chapter 7.
- Works on the repayment plan developed through credit counseling.
- Advises the debtor whether to file for bankruptcy under Chapter 7 or opt for Chapter 13. Remember, Chapter 7 includes the liquidation process while Chapter 13 and 11 call for reorganization of debts.
- Helps an individual in filing bankruptcy forms and initiates the case in local court.
- Helps in arranging all the documents essential for filing a case.
- Consults on whether to file bankruptcy individually, or along with spouse.
- Consults the client in evaluating exempted property which will not be liquidated.
- Prepare the client for the ‘341’ meeting. This is a meeting between court trustees, the debtor and creditors to resolve the case. In this meeting, trustees act as the mediator and try to find the best possible resolution of debt. The debtor can bring their attorney to this meeting. However, personal presence is mandatory.
- Help in the discharge process and in seeking a court declaration on end of financial obligations for the debtor.[br]
Chapter 7 Bankruptcy Attorney: Counseling
One of the most important functions of Chapter 7 bankruptcy attorney is counseling. The attorney counsels their clients on possible alternatives to Chapter 7 filing. Some of these alternatives are:
- Debtors in business prefer to continue operations even after bankruptcy so that they can file for debt adjustment process under Chapter 11, rather than liquidation process in Chapter 7.
- An individual debtor may opt for debt reorganization under Chapter 13.
The advisory role of an attorney gains prominence, because the court can quash bankruptcy petition if debt closure is possible through alternative means, such as an out-of-court settlement.