What you can do while filing for bankruptcy
Bankruptcy is a word mostly used in law. Bankruptcy means a legal status of a person that cannot repay debts it owes to creditors. It is a very embarrassing situation since one does not know how he or she will pay the debts. On the other hand, a bankruptcy attorney is a lawyer that specializes in bankruptcy issues. These lawyers have the knowledge on various types of bankruptcies, filling required documents with the court and issues with the creditors. This process involves litigation when creditors challenge the bankruptcy. A bankruptcy attorney is the one who is certified to help with bankruptcy issues. The issues include representing small businesses for consumers that need bankruptcy debt relief. This can be done in various ways; either completely eradicate debts and contract obligations or rearrange their affairs by making the debt payments suitable for them. Usually, the governments do not support bankruptcy filings as these can give rise to many more bankruptcy cases in the future.
The bankruptcy attorneys help the businesses and even individuals to regain their normal way of functioning. Every bankruptcy attorney works under the following practice areas:
This practice area is also called liquidation proceedings. It is based on chapter seven. In this practice area, a trustee is given the mandate to own and sell the debtor’s assets so that the debt can be settled. What all is sold is the debtor’s non-exempt assets. When this practice is followed, the result is that the creditor ends up not paid all his or her debts.
Reorganization of business and consumer debts
- Chapter eleven. In this chapter, the reorganization of business in this chapter is entitled to corporations and individuals.
- Chapter twelve. In this very chapter, the reorganization of businesses and consumer debts are for family and fishermen. Also corporations and individuals qualify in this.
- Chapter thirteen. Reorganization of business and consumer debts is entitled only to individuals and sole proprietorships.
The Houston bankruptcy attorneys have this practice area as the one enjoyed much. They perform bankruptcy litigation in special types of cases. The following are some of the cases in which they practice bankruptcy litigation.
- Discharge and dischargeability contests; a discharge is a complaint by the creditor asserting that a debtor should be protected from gaining discharge of all his or her debts due to the misconduct by the debtor. A dischargeability contest involves when the creditor says that the debt owed should not be discharged due to the debt status.
- Preference claims; in this, creditors are presented in defense of their claims. Here the claim is asserted to the debtor that payments made to the creditors contain unlawful preferential payments and should be given back to the debtor.
- Home mortgage litigation; both the debtor and the creditor are represented in prosecution of home mortgage. This explains claims that home mortgage debts are inaccurate or they were improperly collected.
In conclusion, a Houston bankruptcy lawyer ensures that the debtors do not suffer from a bankruptcy.