For those who are deluded by the term bankruptcy, and consider it a condition in which a person loses everything he has, it is time to check a few facts. Filing for bankruptcy does not mean losing everything that remains with you. In fact, going through proper legal processing can not only help you retain all your present assets but also, recover the lost money. Yes, if this sounds a little unfamiliar to you, then it is high time for you to familiarize yourself with the actual facts of laws governing bankruptcy.
Firstly, declaring a company or business bankrupt, is a legal process. The court takes this major decision only if a debtor unable to pay his loans has filed a case under bankruptcy. Petitions can be filed even by creditors who are unable to recover their loans. The procedure is essentially taken up through the services of bankruptcy lawyers. How do they help you? Well, here is a preview into the method in which you can benefit from their services.
If you are facing trouble in managing your finances and repaying the loans you have taken for your business, you should reconsider your future prospects. By consistently suffering losses, you will come to a point where all your resources are exhausted. At this stage, a bankruptcy attorney will ask you to immediately start the process of filing for bankruptcy. In the initial stages, you will be required to present to court an account of your possessions. But fear not, until and unless you are registered under Chapter 7 bankruptcy you will not be asked to surrender them.
Chapter 7 bankruptcy is registered for those who have no other option of clearing their debts, and will not be able to pay off the loan, even if an extended duration of time is granted to them. The existing property of the petitioner is put up for auction and the amount of money recovered in the auction is used to pay off the loans. The lawyer or attorney presenting the debtor, also receives his share only after the money received from auction has been used to clear the debts.
This however, happens only if the court accepts your filing under Chapter 7. For this you will be have to clear the Means Test. This aims at recognizing your eligibility for Chapter 7 Bankruptcy. Therefore, if you want to avoid any property sell-out, all you need to do is file under Chapter 13, in consultation with your bankruptcy lawyer. Ocean County and Toms River residents should make sure they have an idea of the law offices that address bankruptcy in their area.
Bankruptcy lawyer Ocean County – It is best to hire the services of an experienced bankruptcy lawyer. Ocean County residents are lucky in this respect as they can avail the services of legal professionals working with Law Offices Of Lee D. Gottesman.