Bankruptcy derives from an Italian word meaning broken promises. For centuries, the law has been framed to protect the interests of creditors and debtors as a decent way to manage the debtor’s financial crisis. Bankruptcy law in America is a trial for the management of bankruptcy that can hit both consumers and businesses. Bankruptcy Lawyers in Colorado Springs will help eliminate debt and allow you to pay under the system of protection of the bankruptcy court.
Bankruptcy consists of two types: liquidation and reorganization. Bankruptcy liquidation under Chapter 7 consists of clearing the debt through non-exempt assets and using that money to pay creditors. On the other hand, in a bankruptcy reorganization, which is covered by Chapters 11, 12 and 13, the debtor has to make a plan to pay a portion of the debt or the total debt. The payperiod reorganized under bankruptcy is usually around 3-5 years.
Hiring an attorney in a bankruptcy case would prove to be very helpful at all stages of the bankruptcy process. Bankruptcy Lawyers in Colorado Springs assist in settling accounts of unsecured credit cards, personal loans, bills, etc. for less than the amount of debt, thus providing an alternative to bankruptcy. Bankruptcy lawyers also help evaluate options for the kind of bankruptcy that has to be submitted. They can also help to resolve issues if debts are too large and involve substantial assets.
Bankruptcy is similar in all 50 states, although some additional forms may be required according to local regulations. Bankruptcy lawyers are subject to the payment guidelines issued by bankruptcy court in that city or state. When choosing a bankruptcy attorney, be careful to select one that is experienced in handling bankruptcy cases and who has a proven record of successfully handling these cases.
Information about bankruptcy lawyers is available in the yellow pages, search engines like Google and through ads. There is also a lawyer directory available on the internet to provide comprehensive information about bankruptcy attorneys. Information about these attorneys is also available throughout the county and state Bar Associations. Friends and family can also provide useful references for good bankruptcy lawyers.
