What Columbus Bankruptcy Lawyers Do
A Columbus Bankruptcy lawyer can help you through the process of bankruptcy. Bankruptcy is the legal process of managing the debts of a person or business that cannot pay their debts. Bankruptcy is a difficult time for a debtor, but is a useful tool that offers the debtor a chance to start fresh and clear some debt. The purpose of bankruptcy from a debtor's perspective is to discharge debt, and the purpose from a creditor's perspective is to ensure the creditor's debt gets collected according to its priority. A creditor has priority over other creditors based on whether their debt is secured, what date the debt was secured, and what type of debt it is. In general, a secured debt has priority over an unsecured debt, and the first secured debt typically has priority over later secured debts. A creditor that has a higher priority debt would want to commence bankruptcy proceedings so the assets of the debtor will be distributed based on priority, and a creditor with a lower priority debt would rather collect directly from the debtor.
The debtor's result from a bankruptcy proceeding varies depending on the type of bankruptcy proceeding. The goal is to get rid of dischargeable debt and manage debt that is not dischargeable. However, this is done in different ways in Chapter 7 vs Chapter 11/13. Chapter 7 bankruptcy is a liquidation proceeding, meaning that the debtor's assets are sold, the debtor's money is applied to their debts, and any unpaid amounts are discharged if they are dischargeable debts. Chapter 13 allows a debtor to keep their assets instead of being forced to sell them off, but debts are discharged differently. The debtor must come up with a repayment plan for debts that are not paid off during the bankruptcy proceedings. Once the creditors agree to the terms of the repayment plan, the old debt is "discharged" and the new debt according to the repayment plan takes its place. Thus, the debtor keeps more assets but still has some debt.
Why You Need help
Bankruptcy is truly a legal battle. Every creditor is going to file legal motions arguing that their debt is not dischargeable. They are also going to be arguing about the priority of their debt as compared to other creditors. When you involve multiple creditors, you then have multiple parties with lawyers trying to advance their individual interests against each other and against yours. If you do not have a Columbus bankruptcy lawyer to defend your interests, you may get stuck with a debt that should have been discharged because you didn't know what arguments or defenses to raise against the creditors.
A bankruptcy lawyer can also help you comply with the requirements of bankruptcy proceedings. A debtor is required to attend several meetings during the proceedings, and is also required to attend certain money management classes. Failing to comply with these requirements can cause the bankruptcy court to take harsh action against the debtor. You really need a Columbus bankruptcy attorney to help you navigate the proceedings and defend against numerous creditor motions.
Why Work With Collier Legal, LLC
The Columbus bankruptcy lawyers at Collier Legal, LLC will work with you to get the best outcome from a bankruptcy proceeding. Our lawyers will help you remain compliant with bankruptcy proceedings and protect you from creditors trying to advance their claims against you. Our attorneys will also work with you to keep any assets you need and write acceptable repayment plans for you and the creditors. We don't want bankruptcy to be the worst point in your life, we want it to be a fresh start to a better, debt-free life. To work with a Columbus bankruptcy lawyer, contact us today.