Bankruptcy is a state of a person not being able to pay his debts. It is a legal process and this state is officially imposed by the law and the court. When a person is bankrupt, he must initiate a case to prove it in front of the court, so he can get a relief from the creditors. It is a whole process in which the judges check the liabilities and assets of a person or a company who are unable to pay their debts and to make a final decision. The decision can either be discharging the debt, so the individual or company is free of its debts legally, or to sale the property of debtor to pay the debt. There are near 2 million bankruptcy files a year in USA. People and hire a bankruptcy lawyer San Antonio, or any city or any state of the country.
Types of bankruptcy
Bankruptcy laws were written for the ones, whose finances collapsed so that to give them a new chance. Financial collapse either be due to bad luck or bad decision-making. Either way, in the capitalist economy, everyone needs a second chance. And lawmakers could see that. The most cases of bankruptcy in USA are of following chapters
Chapter 13 bankruptcy
This bankruptcy is also famous as wage earners. In this type of bankruptcy case, individual or a company decides to pay the debts after a relief or in installments. According to ABI’s study of PACES from 2016, out of 831181 cases of bankruptcy, 331,272 cases were of chapter 13, of which, only 166,438 (half) were discharged and rest were dismissed.
Chapter 7 bankruptcy
Unlike the chapter 13, this bankruptcy doesn’t require to pay debts. Which means one will not be required to pay his debts legally. In this case, the property or assets of the debtor are sold to set him free on true debts, or sometimes, the debts are discharged without doing that. This is considered more beneficial but that might always not be the case. According to the study, only 22,390 cases of chapter 7 bankruptcy were dismissed and the rest 499,907 were dismissed.
Hiring a lawyer for you
There are a lot of different reasons people get to file a bankruptcy case. Increasing financial problems can lead a way to bankruptcy. You always need a lawyer to file your case and to prove in court that you’re bankrupt and cannot repay the debts. Several cases of bankruptcy have been seen daily and you cannot tell which lawyer if going to give you a discharged case. Yet you can hire a bankruptcy lawyer San Antonio TX, if you’re going under a financial crisis. Here are some reasons for individuals looking for a bankruptcy lawyer in San Antonio or anywhere
- You’re having an insured health policy for you and your family.
- You’re over run by the household expenses like electricity and other bills.
- Have run out of every source and cannot pay the debts.