Bankruptcy Lawyers

When you are finished with the bankruptcy process, you are considered to have bankruptcy adjucation. All previous debts are forgiven and you are no longer personally liable. Since you are given a financial clean slate, in exchange you must hand over all of your possessions so the people you owed money to can be atleast partially compensated.

Sounds simple enough, but there is a lot more involved that a trusty bankruptcy lawyer will take care of.

Not everything is taken from you in a bankruptcy though. A few items are allowed to be kept after the process. Each state has different rules regarding exemptions, so you should consult a bankruptcy attorney for information on your state's exemption rules. Some states are not generous so some people opt to use the Federal exemption rules, because in some situations you can end up with more items. Talk to your lawyer about which one is best for you.

There are two types of bankruptcy, Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, a trustee collects all the assets of the debtor and reduces them to cash to pay those owed by the debtor off. In a chapter 13 bankruptcy, the debtor sets up a three to five year plan of payment with collectors. In both cases, it is advisable that one hires the expertese of a specialized bankruptcy attorney.