Bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. It begins by the filing of a petition by either the debtor or the creditors. Then, the assets of the person or entity is calculated and a portion of that is given to the creditors according to the order set by law. When the debtor is declared bankrupt, he will be released from his obligations. This gives the debtor a fresh start and also gives the creditor the chance to be repaid from the assets that remain.
This proceeding is beneficial to small businesses and companies as well as the economy because they will not be forced out of business. This is because they will not be forced to pay their obligations immediately, instead, they will be given the time to regain their normal financial liquidity before they are made to pay their financial obligations to their creditor.
Bankruptcy laws differ from state to state and if you have decided to file for bankruptcy, you have to know the laws of your state. Also, it is vital that you get yourself a bankruptcy lawyer. If you reside in Memphis, you may find a lawyer by searching in google, “Memphis bankruptcy lawyer.”.
Memphis bankruptcy laws are different from that of the other states and this is why you will have to get a lawyer that is also from Memphis. Your bankruptcy lawyer must be able to answer all your questions and must provide you with solutions for your predicaments. Get a lawyer who has been practicing for at least 10 years.
There is a test which you have to comply to be able to be successfully declared bankrupt by the courts. This is the BAPCPA’s means test. The fees charged by each Memphis bankruptcy lawyer is varied. LSomen lawyers are paid depending on the anount of the debt, while some are paid at a fixed scheduled rate. Find a lawyer who will charge for less for good and reliable service.