How to Deal with Bankruptcy: Bankruptcy Law Blog

Bankruptcy is a legal situation when a person or an entity such as a business organization cannot pay the debts owed. It’s quite obvious by the above statement that the person owing money has been already flat broke and upon this, the legal complications surrounding the case adds to the huge burden. It is very confusing to deal with the ever-changing laws of bankruptcy when you are experiencing it for the first time and you desperately need a hand of assistance. The first step in this regard is taking the help of a bankruptcy law blog to familiarize yourself with bankruptcy. So what do these law blogs have on bankruptcy, how can they help you, here’s the complete story.

1. Understanding Bankruptcy

As said before, bankruptcy is a very confusing and exhausting situation and you will encounter a lot of terms you are not aware of, but will be used very often in the future. Bankruptcy law blogs help you to understand these basics and introduce you to bankruptcy. Some of these basic terms include

• Debtor-The person or entity who owes money.

• Creditor-The person or entity to whom the debtor owes money.

• Trustee-An entity and most often an individual who administers a bankruptcy case.

• Claim-The creditor’s assertion that the debtor owes a certain amount of money and claims that he has the rights over that money.

• Exempt-The property of the debtor that is not up for claim by the creditor though a case is filed.

• Lien-The creditor’s right to take hold of the debtor’s property or sell it, as a security or payment for the debt owed.

• Discharge-The ultimate goal of a bankruptcy case from a debtor’s point of view. Discharge declares the debtor non liable for all the claims made by the creditor and prevents the creditor to take any action on the debtor to collect the debts.

This is just a little collection of the most basic terms used in bankruptcy. Every law blog will have a glossary of these terms to help you understand the law of bankruptcy more easily.

 2. Understanding Your Case

Before you take any legal action on any issues related to you, either as a creditor or a debtor, you need to understand and decide which category of bankruptcy case does your situation belong to. A law blog will help you understand your situation by explaining these different categories of cases in a detailed manner, which is just briefed below.

• Chapter 7- It is the most common type of bankruptcy in which all the non-exempt property of the debtor are possessed by the trustee and repaid to the creditor. The creditor has no claims on the wages the debtor earns after this.

• Chapter 13-This is a repayment plan in which the debtor gets to keep his property only if the person can repay the debt, has a regular income and the debts don’t cross a specified limit. The repayment percentage can range from 10 to 100% based on the debtor’s income and the owed debt. 

 • Chapter 11-It is a reorganization scheme in which the debtor gets to keep his assets and comes to an agreement with the trustee and the creditor with the federal court’s consent.

There are many more chapters such as chapter 9, chapter 12, chapter 15 for which you should refer a bankruptcy law blog for detailed information.

3. Hiring Bankruptcy Attorney

These law blogs offer you many tips on hiring an attorney/lawyer who can defend your case. The blogs say that you must always go to an attorney who offers a reasonable fee (since you are already facing money problems), who understands your situation, who has experience not in terms of years of practice, but number of bankruptcy cases handled during that practice period, and who is up to date on the ever-changing rules of bankruptcy.

Apart from the above mentioned points, bankruptcy law blogs connect you with their experts and help you clarify your doubts and queries with expert opinions. It also brings people who are dealing with the same situation as yours under one platform and offer moral support and comfort.

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