A personal bankruptcy lawyer is a legal expert who helps their clients through the process of bankruptcy. There are incredibly complex laws surrounding bankruptcy, which is why it is very difficult to arrange this without legal representation, although it is allowed. When you hire a lawyer, however, you will have a specialist who knows the local laws working on your side, filing all the relevant paperwork on time and in the right way, making sure you can benefit as much as possible.
What Is Bankruptcy?
The process of filing for bankruptcy is very complex. That said, it is still the best way to recover from getting into a situation of unmanageable finances. Different complex bankruptcy laws are in place, including stringent rules on how documents must be filed according to local and state laws. By enlisting the services of a personal lawyer, how knows the laws and bylaws, the filings can generally be set up properly, ensuring people can keep at least some assets and rebuild their credit rating in a way that is more likely to be in their favor.
In the United States, a Bankruptcy Code must be followed, which is relevant across the country. However, local bylaws and laws supplement the national Code. Different countries have their own laws, such as:
- The Canadian Bankruptcy and Insolvency Act.
- The United Kingdom Insolvency Law.
- The Australian Bankruptcy Act of 1966.
All of these laws set out the condition on which it is allowed for someone to file for bankruptcy, what they need to do about their outstanding debt, and what the consequences of bankruptcy are in relation to their credit rating and taxes. Additionally, it describes exactly how people’s assets have to be managed if their bankruptcy petition is accepted.
The Work of a Personal Bankruptcy Lawyer
Bankruptcy, or insolvency, is a legal announcement, which is why the courts have to manage it. A lawyer’s main responsibility will be to make sure their client’s needs and interests are safeguarded as much as possible. They are there to make sure the settlement will favor the client, rather than the creditors. They will fight the corner of their client, managing the relevant procedures and formalities, and appear in court on behalf of their client.
A personal bankruptcy lawyer has a lot of different responsibilities. One of the most important ones, however, is that of structuring the bankruptcy itself. There are usually many different ways in which this can be filed. For instance, they may liquidate their assets and thereby pay their bills, they may ask for their debt to be reorganized, they may have their debts combined, or they may ask for tax relief so that they can pay for their debts. The lawyer is there, as well, to educate the client on which options there are and which one is right for them, but also to give them advice on how to better manage their finances in the future so they can rebuild their lives.