Legal Guide

Bankruptcy and what are the benefits of hiring a bankruptcy attorney/lawyer.

Taking debt:

Being a goal digger is the need for time to flourish in the hustle-bustle of the world. We work hard daily and always dream of owning our own house, car, or even a business to keep going. But for all this, we need a good amount of money. Many of us work hard, and still, we are unable to make both ends meet.

Especially the time we are living in is very crucial because of COVID-19. Every class of society is suffering from this. A lot of people lost their jobs or failed to pay the debt for their houses. These financial crises are a source of depression and make everyone miserable.

One way to get rid of this situation is to go into debt. It is a viable option because you can own a car or house. You can even start your dream business. It is okay to have dreams and goals, but it is not okay to settle for something low. If you want a house to live in peacefully or a car to travel comfortably and you do not have enough money, then a loan can fulfill all your incomplete desires.

What is Bankruptcy:

Taking a loan is an easy option to rely on, but the real issue comes when you are unable to give the loan back and face Bankruptcy. Bankruptcy is a state where your debt is much higher, and you believe you cannot pay them in time, so you pursue the court proceeding. The judge in the court compares your liabilities and assets with the debt you have taken for any cause.

The court has the right to discharge the debt means that the person no longer has to pay it. Or even analyze the situation; if you have enough assets to pay the debt, then the court has the authority to dismiss the case.

Reasons for Bankruptcy laws:

Now comes the reasons to have these bankruptcy laws. The lawmakers believed that it is your right to have a second chance if your business collapsed for any reason. It encourages and motivates the person not to lose hope and start over again.

Second chances always sound good when one person is ready to learn from past mistakes and determined not to do it again.

Two methods of filing Bankruptcy:

There are two ways to go for bankruptcy one is chapter 7, which many people consider before filing Bankruptcy. It allows the trustee of the federal court to supervise the whole process of selling the assets that are not exempted. Its significance is that if you are in debt again and unable to pay back, then you do not need to file another bankruptcy for the next eight years.

On the flip side, there is another method which is chapter 13. This method is helpful because it allows you to keep your property for the sake of entirely or partially paying back the debt. The court and the attorney negotiate a period of 3-5 years in which the debtor has to pay the debt. This method is preferable because it allows the debtor to retain the property and repay the debt side by side.

When to file Bankruptcy:

The need to declare Bankruptcy is when the debt is much more than your assets, and in the near future, there is no hope for having enough money. Surprisingly, businesses ask for filing a case of bankruptcy.

Still, there are a majority of individuals who are unable to pay back their credit card debt, mortgage, student loan, or auto loan. There can be one or two of these reasons or all four at once because the individual does not have any salary support to get out from this debt, and they look for filing bankruptcy cases.

Filing for Bankruptcy is a great option, but when is the right time for it? This is the question that comes to mind, and the answer to this question is to ask yourself whether you can pay back the debt in the coming five years? If the answer is no, then it is the right time to use this option.

The purpose of these laws is to give second chances if you are financially devastated. If you opt for this process and do not qualify for Bankruptcy, debt relief is another way to make things easy.

If you are in a ship of financial devastation with a whole and the rising water level means the tension is increasing, no friend, family member, or bank will give you a lifeline. We can estimate how poor conditions will be for the middle class or a person in debt.

Many people took debt by planning to pay it back by salary. Conditions got worse when they could not maintain the ratio of input and output and restore it. They had to fire many people.

Bankruptcy gives second chances:

In such a situation, a person who relies on salary is in danger. For a person to have peaceful mental health and stand on their feet, Bankruptcy laws give them a second chance. At the end of the month, you have to pay bills no matter what, but if you do not have any money, then Bankruptcy is a legal and safe way to get out of it.

After analyzing its importance, the next question is how to go for it? What is the lawful way of doing it? Although it is a legal way of discharging or reducing debt, you can file for bankruptcy independently. The second option is to hire a bankruptcy lawyer for it. There is a filing fee for it. Even if you are filing it on your own, you have to pay the price.

Bankruptcy filing is the best option to choose. It still involves proper law procedure. It is not a dramatic scene where you can cry and emotionally blackmail the judge that you did not make both ends meet. Here comes the need for an attorney that can walk you through this whole procedure smoothly. The best recommendation at this point is to go for a Bankruptcy Attorney.

Attorney for Bankruptcy:

The reason for choosing Laleh Ensafi as your Los Angeles Bankruptcy Lawyer is because bankruptcy record is 765 cases with ten years of experience in relevant fields. She is a master in both sides of Bankruptcy and has the expertise to work with both creditors and debtors and is well aware of how to save debtors from creditors in a smooth way.

The best quality is that her fees are flexible and affordable. And in most cases, there are flat fees to save you from unexpected bill surprises.

Why File Bankruptcy:

Filing bankruptcy can help you out in stopping or slowing down the wage garnishment, repossession of a car, and home foreclosure. Lawyers play a significant role in identifying the problems and points and preparing you for the case because they have experience in successful bankruptcy cases for people suffering from credit card debt, high car payments, home mortgage payments, and medical bills.

With all these positive points and aspects of lawyers, bankruptcy filing easily can take you out of the financial crises that are taking your peace of mind. They have the potential to help and guide you through this whole complicated procedure and are eager to help in any way. After all, when we face any disease or illness, we never think about curing it on our own.

We always look for a professional person who must have experience and quickly identify the issues. After identifying the cause, the doctor also prescribes the medicine so that you can recover soon, just like this bankruptcy attorney is a professional shoulder to trust and put all your burden on.

Consequences of Bankruptcy:

“Bankruptcy is a legal proceeding in which you put your money in your pocket and give your coat to your creditor”  _ Joey Adams. The worst consequence of Bankruptcy is the loss of property. In some situations, the debtor has to bear the loss of property because, in both methods, the debtor must give his possession to pay back the debt to the creditor.

It also affects your credit report because the negative information warns the future creditor to take precautions. Although it is the best option to choose, it sometimes comes with more negative outcomes like the government or court fines and penalties. All this information will be there on the credit report for decades.

It involves the liquidation of the debtor’s no-exempt property by liquifying it. By liquify means to convert it to money, and then the money is disturbed among creditors. So, it is crucial to consult a professional lawyer who can make things easy.

More to Read: