You should not be surprised when you find that there are many business owners who are operating under debts. In fact, a business may call for huge capital, and the only option remaining is borrowing. Such a business may fail to repay the debts, and so it is declared bankrupt. Even in an individual capacity, one can be declared bankrupt. Even though that is the case, all is not lost since you only need to engage a lawyer who will represent you in the event of bankruptcy. There is an existing law that exists to protect one who has been declared bankrupt.
As much as you would want to make the right decision, then you must also consider one who has been in the courts for a long. It is about the input of an experienced lawyer that will lead to obtaining justice. One who has the experience is in a position to evaluate your options. In fact, the client will be able to make the right decision considering that he or she will be made to understand the existing options. Anytime a decision to do with bankruptcy is made, a client should be comfortable with it. The fact remains that you will find bankruptcy law in the state law as well as federal rules of procedures. There are risks associated with working with a counsel who is not even experienced. There is a need for further consultations just to determine whether the bankruptcy is right or not. In fact, the truth of the matter is that representation will add value to your financial situation. You find that there is an automatic court order known as automatic stay that is made once a bankruptcy case is filed. With that stay, is creditor is not supposed to take any action against the debtor. The stay is important since it will preserve the status quo. If the creditor happens to violate the stay, one is only a subject of sanctions. You should only expect the sale of a property to be void if you happen to do it without the approval of bankruptcy court.
There are several chapters in the manner of debt dealing. Not all taxes and certain debts should be discharged. A particular chapter may offer several options regarding car loans. In fact, you find that a debtor may exchange a car with a less expensive car and owe nothing to the original creditor. Another chapter will deal with mortgage loans. Just in loss mitigation, a debtor can engage a mortgage lender. But again, the court has to supervise the process. There are instances of unsecured debts. Of course, that can happen where the property is less worth the value of the first mortgage and the second one is converted to unsecured debt. Therefore while looking for a good attorney, you must be careful. It might take you some reasonable amount of time before you obtain the best, but it is worth it. You need one who has wide knowledge about bankruptcy laws.