How Can a Bankruptcy Attorney Help You?

                                     

A bankruptcy attorney in Salt Lake City Utah is a legal professional that focuses his or her attention on dealing with the legal aspects of bankruptcy and bankruptcy procedures. A bankruptcy attorney can serve the needs of individuals, companies and even municipalities. The duties of a bankruptcy attorney are many which include filing the original petition, working closely with the client to establish the assets and liabilities and attending court hearings. When a situation gets to the point where bankruptcy seems to be the only option there are usually other problems as well, these problems run the gamut from home foreclosure, property repossessions, garnishment, etc. The bankruptcy attorney may be called upon by the client to deal with these proceedings as well.

In a typical domestic bankruptcy the assets of the bankrupt must be disposed of in an effort to pay down debt. To see that the liquidation happens and goes smoothly the attorney works with a liquidator that has been appointed by the court. In some cases it is not necessary to liquidate assets but the attorney, client and the court work towards establishing a reorganization plan that allows the debt to be paid off over time. There are many people that are facing bankruptcy that have plenty of assets, assets that they do not want to lose. These people are better of declaring an available Chapter that allows for reorganization of debt under very strict guidelines. On the other hand there are many people that have little to lose and they are better off to completely eliminate their debt which gives them the chance to start over.

Chapters 7 and 13 are the common Chapters used for personal bankruptcy. In Chapter 7 assets such as second or third vehicles, boats, vacation homes and even family heirlooms will be liquidated to pay creditors. Once Chapter 7 bankruptcy is completed there are no further repayment demands and no repayment plan. Under Chapter 13 valuable assets that would be otherwise liquidated can be kept but creditors must be paid off in accordance with the plan which is approved by the court.

When a business declares bankruptcy it too can declare Chapter 7 and simply cease to exist, however if the company is viable the bankruptcy lawyer in Salt Lake City may suggest Chapter 11. When the business declares Chapter 11 it can continue to function but it must repay the debts in accordance with a plan for reorganization that was devised by the court and approved by the creditors.

No matter what Chapter is invoked, bankruptcy is a serious issue and must be studied to understand all the long term implications. A bankruptcy attorney can inform you of all the ramifications of declaring bankruptcy. For more information, visist The Utah Bankruptcy Lawyer.