Your Money & the Law
There come times in life when you encounter very big debts and you are not sure what to do to recover your condition or state. In such a situation the Lawyer Referral Service of Central Texas (LRS) assists you in finding a bankruptcy attorney as a solution with getting out of financial difficulties through bankruptcy law. It may sound like a scary idea, but it is a valuable idea too to relieve you off your debts.
What is Bankruptcy?
Bankruptcy is a legal process and status of an entity or a person is declared unable to repay his or her debts to creditors. In most cases, there exist two types of bankruptcy:
1) Debtors petition – often initiated by the debtor from a court process.
2) Creditors petition – where someone you are indebted to makes you declare that you are bankrupt through a court process.
Different Laws that Regulate Bankruptcy
Bankruptcy case under Chapter 7 – Straight Liquidation
Under Chapter 7 bankruptcy you file a petition asking the court to discharge your debts in exchange for giving up certain property. In this law, you are allowed to keep items regarded exempted by the law and those that are not exempted are sold. Then the money from the sales is given to the creditors. You will thereafter receive a discharge of any remaining debts after you have paid the creditor. Also, people with no property to sell and pay the creditors can still receive a bankruptcy discharge.
Bankruptcy case under Chapter 13 -Debt Adjustment
Chapter 13 bankruptcy law allows you as a debtor to keep valuable property such as cars and property that would be lost if you can make the required payments to your creditor. In this chapter, you table a plan showing how you will pay off your debts in three to five years.
For you to file a Chapter 13 case, you need to have enough income to pay for your needs and to keep up with the required payments as they come in arrears.
What a Lawyer Can Do for You
Texas bankruptcy attorneys work on behalf of the businesses or individuals who owe the debt (called debtors) or the entities to whom a debt is owed (called creditors). The goal in a bankruptcy proceeding is to benefit both the creditor and the debtor. This is achieved by allowing debtors a fresh start financially as creditors become satisfied.
A Texas bankruptcy attorney can also draft motions and proceedings to be filed in court, as well as draft responses to motions and other filings. Bankruptcy attorneys engage in and review discovery documents and hold meetings with clients and creditors to discuss how best to move forward. Motions filed in bankruptcy cases will be set to be heard by the court, and lawyers will have to be prepared to argue them.
Because of the variety of tasks performed by a bankruptcy lawyer, a variety of skills are needed as well. Bankruptcy lawyers must have a strong understanding of the Bankruptcy Code, as well as excellent legal research and writing skills. Lawyers in this field must be prepared to communicate with clients, as well as negotiate with adversaries in pending proceedings, so strong “people skills” are a must. Finally, litigation skills are a necessity, even though newer attorneys may not argue in court right off the bat. Bankruptcy lawyers should be ready to argue motions filed in court at any time; a full understanding of the filings involved, as well as well-practiced speaking skills, are a must in this field.
Remember, that upon registering what you are officially earning, the law tracks your income and how you use it. Be very careful with the activities that generate or withdraw your money. For more information on what options you may have with bankruptcy, contact the Lawyer Referral Service of Central Texas to obtain a consultation with one of our lawyers. We are here to guide you.