Abogados de Bankruptcy

Understanding Bankruptcy Lawyers in the United States

What This Practice Area Covers

Bankruptcy lawyers specialize in helping individuals and businesses navigate the complex world of insolvency. They provide guidance on filing for bankruptcy under different chapters of the Bankruptcy Code, such as Chapter 7, Chapter 11, and Chapter 13. These legal professionals assist clients in understanding their rights, obligations, and the potential outcomes of their financial decisions.

When to Hire a Lawyer

• You're overwhelmed by debt and considering filing for bankruptcy.
• Creditors are harassing you with collection calls or lawsuits.
• Your home is at risk of foreclosure.
• You want to explore alternatives to bankruptcy, like debt settlement.
• You're unsure which type of bankruptcy is right for your situation.

How the Process Works

Filing for bankruptcy typically begins with a consultation with a lawyer to assess your financial situation. Once you decide to proceed, your lawyer will help you gather and prepare the necessary documents. This includes income statements, asset lists, and debt details. After filing the petition, an automatic stay is put in place to stop most collection activities. The process can take several months, with Chapter 7 cases often resolved in four to six months, while Chapter 13 can last three to five years.

How Compensation is Calculated

• Flat Fees: Common for straightforward Chapter 7 cases.
• Hourly Rates: Used for more complex cases or additional services.
• Retainers: An upfront payment that covers initial work.
• Contingency Fees: Rare in bankruptcy but possible in related litigation.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy involves liquidating non-exempt assets to pay off debts, providing a fresh start in a relatively short time. In contrast, Chapter 13 allows individuals to keep their property and pay off debts over a three to five-year period through a court-approved repayment plan.

Can I keep my house if I file for bankruptcy?

Yes, it's possible to keep your house when filing for bankruptcy, especially under Chapter 13, which is designed to help you catch up on mortgage payments. Even in Chapter 7, state exemptions may allow you to retain your home, depending on your equity and the state laws.