At Pitts, Hay & Hugenschmidt, we understand that filing for bankruptcy is a significant decision that can impact your financial future for years to come. It’s a step taken by individuals and businesses alike to manage insurmountable debt, and it involves navigating complex legal waters. This is where the expertise of an Asheville bankruptcy lawyer comes into play. In this blog, we’ll demystify the role of a bankruptcy lawyer and explain how they can assist you through this challenging process.
Understanding Bankruptcy: A Brief Overview
Before diving into the specifics of what a bankruptcy lawyer does, it’s essential to understand what bankruptcy is. Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the federal bankruptcy court. There are several types of bankruptcy, commonly referred to as “chapters,” each with its own rules and procedures. The most common ones are Chapter 7, Chapter 11, and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
Chapter 7, also known as liquidation bankruptcy, allows for the discharge of most unsecured debts. This means that the debtor is no longer legally required to pay these debts.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is primarily for the reorganization of businesses but can also be used by individuals. It allows entities to keep their assets while reorganizing and paying off debts.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
The Role of an Asheville Bankruptcy Lawyer
Initial Consultation and Evaluation
The first step in the bankruptcy process is an initial consultation with a bankruptcy lawyer. During this meeting, the lawyer will evaluate your financial situation to determine if bankruptcy is the right option for you. This involves reviewing your debts, assets, income, and expenses. The lawyer will also discuss the different chapters of bankruptcy and recommend the best course of action based on your specific circumstances.
Preparation and Filing of Bankruptcy Petition
Once you decide to proceed with bankruptcy, your lawyer will prepare your bankruptcy petition and accompanying schedules and statements. This involves compiling a detailed list of your debts, assets, income, expenditures, and any contracts or leases in your name. Filing the bankruptcy petition with the court officially starts your bankruptcy case.
Representation at the Meeting of Creditors
After filing for bankruptcy, you will be required to attend a meeting of creditors, also known as a 341 meeting. Your bankruptcy lawyer will represent you at this meeting, where your trustee and creditors can ask questions about your bankruptcy papers and financial situation. Your lawyer will prepare you for the types of questions you might be asked and stand by your side throughout the meeting.
Negotiation with Creditors
In some cases, bankruptcy involves negotiating with creditors to reach agreeable terms for debt repayment. This is especially true in Chapter 13 and Chapter 11 bankruptcies, where the debtor proposes a repayment plan. Your lawyer will use their negotiation skills to reach the best possible terms for you.
Court Appearances and Litigation
Bankruptcy can sometimes lead to litigation, such as objections to the dischargeability of certain debts or the proposed repayment plan. Your lawyer will represent you in court, arguing on your behalf and ensuring that your rights are protected throughout the bankruptcy process.
Guidance and Support Throughout the Process
Bankruptcy can be a stressful and emotionally taxing process. An Asheville bankruptcy lawyer will provide not only legal representation but also guidance and support. They will keep you informed about the progress of your case and what to expect at each stage, helping to alleviate some of the stress associated with filing for bankruptcy.
Conclusion
At Pitts, Hay & Hugenschmidt, our Asheville bankruptcy lawyers are dedicated to providing compassionate, comprehensive legal representation to individuals and businesses facing financial difficulties. We understand the complexities of bankruptcy law and are committed to guiding our clients through every step of the bankruptcy process. If you’re considering bankruptcy, contact us to schedule a consultation. Let us help you navigate this challenging time and work towards a brighter financial future.
