Filing bankruptcy can be a life changing process, where debts are discharged and creditor harassment stops. The benefits are too numerous to note in one article, but one common question concerning Chapter 13 bankruptcy is how exactly your lawyer helps. This guide will go over first what the lawyer does,Begin by talking to friends and family members you can trust to see if they have any recommendations.
The main types of bankruptcy give you a choice of two options which will be discussed with you by your attorney. Simply explained, these will be either reorganization of your commitments, or complete liquidations. In the latter case a professional bankruptcy Brampton attorney will act as your trustee. They will handle the issues to liquidate business or private assets, and then distribute the proceeds to the creditors. Liquidation bankruptcies are known as Chapter 7 and Chapter 13 applications.
One of the most difficult decisions one can face in their life is the decision to file for bankruptcy. Especially since the economy has going very shaky it was recorded that at least one million people in America alone were forced to file for personal bankruptcy in the year 2010 in an effort to improve their financial situation. Filing for bankruptcy is the only way you can prevent your house from slipping through your hands while also putting a stop to all those harassing debt collectors that make your life a living hell. Bankruptcy can really help you to get relief from a major chunk of the debt you own while getting the facility of more time for paying back the remaining amount.
Since small businesses are unincorporated, they don't have the same restrictions as larger corporations, which means that any business and personal debts are the responsibility of the business owner. So when a small business owner gets in over their head, the business doesn't file for bankruptcy, rather the individual files. For small business owners who file for Chapter 7 bankruptcy, there are several protections which make it an attractive choice. If you are a sole proprietor, you operate your business by yourself so your business debts are also your personal debts, so they can be dismissed in a bankruptcy case.
For you to be eligible for this chapter, your monthly income should be equal or lower to the median monthly income for your family size set by each state. This seeks to limit high income families to file for this type of chapter. Provided that your monthly salary is higher than this median, you will have to undergo a test and pass it. This test is called “the means test”.
The debtor is given a grace period of 5 years to pay the debts under the supervision of the court. In this plan a written structure of how the debt will be cleared is written down as well as the duration that the payment will take. The creditors are also restricted by the court to put any claims on their money during this payment period.