The main job of your bankruptcy lawyer is to help you tide over difficult financial times. There are many companies which have filed for bankruptcy owing to the recent turbulence in world finance. They have all gone through legal procedures using the services of bankruptcy lawyers. So if you are finding it difficult to clear the debts that you have taken for your business, then it is high time you filed for bankruptcy through the able services of an attorney specializing in this field.
As is well known, most of the bankruptcy cases are registered under Chapter 7 and Chapter 13. how does the process unfold? What is the basic difference these two types of cases? How are both the types of cases solved? A bankruptcy lawyer will be able to clearly state to you all the above facts. So you need to hire the services of an attorney who will be able to help you out understand the nuances of both these codes.
To begin with, chapter 7 cases are those in which the bankrupt individual has exhausted all his sources of income and reached a state of financial annulment. When the court finds a case in this state, it immediately orders liquidation of all assets and property of the owner of such a business. So all the property that is registered under the name of the business is seized by court and put up for sale through auction. The amount of money received through this auctioning is used to repay the creditors.
The debts incurred by the applicant gets either completely or partly cleared. This mode of debt clearance is not always permitted especially when the business is in a condition capable of reviving market sales. A qualifying test called the Miles Test determines whether the case application is suitable for Chapter 7 bankruptcy or not. Most of the cases that are rejected from Chapter 7 bankruptcy are required to fulfill Chapter 13 bankruptcy requirements.
Thus every institution or individual applying for bankruptcy needs to clear the Miles Test to qualify for Chapter 7 bankruptcy. Cases that fail to qualify for Chapter 7 bankruptcy will be required to register under Chapter 13 bankruptcy. Chapter 13 code requires the bankrupt individual to repay his debts over an extended period of time. The duration granted can range from three to five years. Although Chapter 13 bankruptcy may seem to be the hard way out, many businesses have been able to revive their finances through sheer grit and strategic planning.
The most important determining factor of how well the case will be resolved is the argumentations presented by the bankruptcy lawyer. Melbourne residents need to remember that only by hiring the services of an expert attorney will they be able to create the best conditions for case resolving.
