Bankruptcy is recognized by the US Constitution and it empowers the Congress to legislate on this subject for the whole of US. These cases are taken up by the US Bankruptcy courts and the federal laws govern the same. However, in certain cases involving the determination of property rights, due consideration is also given to the state laws. Some main types of bankruptcies in the US are dealt under the following chapters:

1. Chapter 7: It is the liquidation of the assets. In this, the trustee is appointed and he takes stock of all the assets. He sells the same and distributes the proceeds to the creditors. The state laws give protection to the debtors by allowing them to keep certain essential properties. So, in effect, the liquidation is of properties other than these assets.

2. Chapter 9: This chapter deals with the reorganization of municipalities rather than their liquidation.

3. Chapter 11, 12, 13: Chapter 12 is applicable only to ‘family fishermen’ and ‘family farmers’. These chapters allow the debtor to retain some of his properties and use his future income to pay off the debts.

4. Chapter 15: It deals with the bankruptcy of those foreign entities which have US funds.

With people increasingly using the chapter 7 bankruptcy provisions to get themselves bankrupt and start afresh from scratch after wading off the creditors, the laws have been amended to make stricter eligibility norms for applying for chapter 7. The people with higher incomes (determined in accordance with a set procedure) are required to first pay off some part of their debt under chapter 13 before they can apply under chapter 7.

Another important change is about the mandatory counseling requirements before filing for the bankruptcy. The counseling has to be done with a government approved agency which will counsel whether bankruptcy is required to be filed or the repayment plan can be worked out. If it does prepare a repayment plan, you need not pursue it but it is required in the court of law.

The counseling is required not only before the filing but also after the verdict. This one is about the financial management so that the person knows how to manage the funds when he begins afresh.

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The need for a bankruptcy lawyer is evident in the following scenario. Are you struggling under the stifling burden of debts.  Do you find it difficult to meet even the minimum monthly payments.  Are you contemplating filing for bankruptcy.  If the answer to all these questions is  yes,  then it is time you started searching for a lawyer who can help you through the long journey of bankruptcy proceedings. You need to contact an experienced lawyer who is well qualified and able to handle bankruptcy cases. With the new bankruptcy law and its proceedings, it has become more difficult to consumers to file for bankruptcy under Chapter 7, which is liquidation of assets.

How Can Your Bankruptcy Lawyer Help You

Your bankruptcy lawyer can be of immense help by preparing all the relevant paperwork and also by explaining the legalities that are involved in filing for bankruptcy. Your attorney can also shield you against harassment by creditors as it is he who deals with the creditors on your behalf. A well-known or reputed attorney can also help out by providing the actual cost of the breakdown. Your attorney will also be with you whenever you need to be present in the court or meet with your creditors. With the attorney by your side, it is possible to have your Chapter 13 bankruptcy case handled with care and discretion.

A disadvantage of bankruptcy attorneys is the extremely high charges that may be incurred. It may be difficult for a person, who is already struggling to meet his minimum monthly payments, to pay the high attorney charges. However, it is possible to meet these fees as installments over a period of time.

Finding A Good Bankruptcy Lawyer

Although there are many resources that provide information on bankruptcy, the advice and help of a good bankruptcy lawyer has no substitute. Sponsoring bankruptcy lawyers can help you to view your financial situation objectively, differentiate between Chapter 13 and Chapter 7 bankruptcy and help you to plan your next move with confidence. Find a good lawyer by accessing the attorney directory that specializes in bankruptcy. You can also take the advice of friends, colleagues, other members of the bar etc. to get a good attorney.

A Bankruptcy Lawyer For Your Chapter 7 Bankruptcy

A Chapter 7 bankruptcy can help in the elimination of various unsecured debts such as credit card bills, unsecured personal loans and medical bills. A bankruptcy lawyer will be able to explain whether Chapter 13 or Chapter 7 bankruptcy is more appropriate for your circumstances. He can also help you by explaining the provisions of “automatic stay” in the bankruptcy law. He will inform you when the stay in bankruptcy prevents the creditors from taking action against you or contacting you. If you are intending to file for bankruptcy under chapter 7, you need to contact a bankruptcy lawyer without delay, especially now that newer amendments have been made to the law.