Bankruptcy and Bankruptcy Attorneys

2007-03-08 10:33:40

( Legal )



The B Word
Bankruptcy is a system devised by law to give a fresh start to individuals or corporations which are continually unable to meet their obligations as they fall due. The position of being consistently unable to pay one’s debts is called insolvency. The basic procedure of releasing an individual or corporation declared bankrupt usually involves three things. First, existing assets are gathered. Second, the assets are converted to cash. Finally, the cash is divided amongst the creditors, usually following a system that ranks creditors in a certain order (taxes, for example, are usually granted first payments).

Bankruptcy Lawyers or Bankruptcy Attorneys
The lawyers who specialize in the field of bankruptcy are called bankruptcy attorneys. They are familiar with the ins and outs of bankruptcy, especially the local laws that govern court procedures. Every country has a different set of rules, and local bankruptcy lawyers are the experts in these types of proceedings.

Voluntary Bankruptcy
Bankruptcy lawyers can assist an individual who fears impending insolvency to file for voluntary bankruptcy. When this is done, the bankruptcy attorney will aid the individual in attaining the fresh start that we spoke of. The court will investigate the claim, and if it sees that the individual is, indeed, insolvent, the court will declare the individual bankrupt.

Local Rules, Local Lawyers
Since the rules of bankruptcy differ from state to state. California bankruptcy attorneys are bankruptcy lawyers licensed to practice in california and presumably knowledgable in the local laws of the state. An austin bankruptcy laywer is likewise an expert in austin bankruptcy laws. The same goes for a texas bankruptcy attorney, a dallas bankruptcy lawyer, and so on.

Involuntary Bankruptcy
Bankruptcy attorneys are also consulted to force a declaration of bankruptcy when an individual or corporation refuses to admit that it is insolvent. If you encounter a debtor that refuses to pay you consistently, and you suspect that this debtor is insolvent, a bankruptcy attorney can assist you in forcing a person to be declared bankrupt. This will allow you to recover some of the money owed to you, but it does not guarantee that the assets possessed will be enough to satisfy your whole claim.

The Advantage of Bankruptcy
The advantage of filing for bankruptcy is the suspending of all legal actions regarding your debts. If you are insolvent, and have filed for bankruptcy with or without the aid of a bankruptcy lawyer, you will experience a reprieve from outside pressure to pay your debts. When bankruptcy is declared, your assets will be taken, converted to cash, and distributed. This is the price paid by an insolvent debtor for a new beginning.


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