When you, a friend or even a company is buried in debts without the hope of settling them anytime soon, they may choose to declare themselves bankrupt. This feels like the only option they have at the time. Declaring yourself bankrupt allows one to free themselves from debts and gives them a chance to start their lives all over again. It’s beneficial as it put you back in control instead of the debts getting the best of you.
Consider This before Making the Decision
Though bankruptcy can seem to be the only best option and position to take, it is always vital to weigh your options and understand what will happen due to the bankruptcy process. The moment you declare yourself bankrupts, three things are set to happen. Most notable, all your debts will be under control thus you are assured of a fresh start. Second is too bad as, the state of bankruptcy may harm your credit rating, making your life harder. Lastly, you may feel ashamed and sometimes guilty and this may affect you psychologically.
Why You May Need to Hire a Bankruptcy Attorney
Sometimes a person may not know whether they need to consult a bankruptcy lawyer, however, if you are experiencing the following, then you really need to seek bankruptcy law services Pittsburgh PA. You have no cash flow, you are unable to pay your bills, you are receiving frequent calls from debt collectors and creditors, bounced checks, you are not sure how you will approach your pilling debts, you need court representation.
For businesses that are failing, or struggling, the owner may need to seek the services of a Chapter 11 bankruptcy attorney. These professionals will assist in buying you time to restructure your company and organize for your debts to be paid later. On the other hand, you may need a Chapter 7 bankruptcy attorney if you intend to close your struggling business. Chapter 7 lawyers smoothly hand over your firm to your creditor as forfeiture to settle your debt.
Chapter 7 lawyers can as well be used if you personally are sure to fail to settle your debts over time. Here, a financial fresh start will be given to you in return for any valuable assets. If you are in the process of repaying your debt but you still need more time to settle it, then you will need a Chapter 13 bankruptcy attorney to help in the reorganizing your debt and negotiating a favorable payment plan with your creditors.
Benefits of Hiring a Bankruptcy Attorney
These professionals are familiar with the federal bankruptcy laws, the court rules as well as bankruptcy procedures in your state.
They will keep you posted on the new developments of the case, such as the need for additional documents or if the creditor has issues with your case.
There is a lot of paperwork when filing for bankruptcy; however, attorneys have certain programs for filing and preparing these documents and other court documents.