The battered economy and lack of jobs are an apparent concern facing America today. Personal bankruptcies in the United States have hit an all time high as a result of the losses in the economy in 2008 and beyond. I strongly suggest you to visit Dallas Debt Lawyer to learn more about this. A direct consequence of job cuts in the industry and financial sectors has been the majority of the reasons for the rise in personal bankruptcy petitions. Aggravating this reality, many young families relying on incomes ravaged by the recession and older Americans facing a medical crisis or nursing home stay have not had the personal resources or incomes available to cope with this. As a result, even more Americans are turning to the courts and a bankruptcy lawyer for advice and support to deal with the crisis, including older Americans and retirees.
But exactly what is insolvency? The aim of the bankruptcy code is to give families and individuals in the United States a brand new financial start, as stated by the Supreme Court in a case in 1991. Another way to look at this is that bankruptcy helps you to get a new start that changes your life without any debt burden. How do you go about seeing if you are qualified for this new start? The easiest approach is to make an appointment in the state that you live in with a competent licenced bankruptcy lawyer. Bankruptcy is a legal profession, and no one knows better than a trained bankruptcy lawyer about the ins and outs of bankruptcy.
When you meet, one of the first things your lawyer would make you do is to finish a worksheet listing out your assets and debts, along with a list of creditors and the sum of money owing along with your payments. This is to send a snapshot of your present financial condition to others. This snapshot is important to see what sort of insolvency insurance you are eligible for and how best to proceed. Chapter 13 re-organization and Chapter 7 liquidation are two basic forms of bankruptcy protection. The fundamental differences are that you negotiate with the court and your creditors under chapter 13 to re-pay all your outstanding secured and other debts for a specified period of time, usually five years, in most cases at a significantly reduced rate. On the other hand, a chapter 7 liquidation is a complete sale-off of all the non-essential properties and a complete discharge of all debts outstanding. You are entitled to retain such critical assets such as work tools or machinery, vehicles and other transportation, IRAs and savings and your primary home with a chapter 7. You are simply not permitted to keep or hold on to something that is unnecessary. Your bankruptcy lawyer will help direct you through the labyrinth of petition filing and court proceedings to accomplish the mission of starting over after you have determined which way you would go with your bankruptcy to give yourself a fresh start.