Common Types of Bankruptcy Filing
Most debtors who file for personal bankruptcy do not have much money left to spare for an expensive lawyer. As a result, most people wonder how bankruptcy attorneys get paid. In most cases, how the bankruptcy attorney Columbia SC is paid actually depends on whether you're filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. If you are filing Chapter 13, your bankruptcy attorney will get paid for his work by the bankruptcy court. If you are filing Chapter 7, your bankruptcy attorney will receive payment directly from the creditors of your bankruptcy case.
Some bankruptcy attorneys get their payment from the creditors of the bankruptcy case itself. This means that your bankruptcy attorney receives a percentage (sometimes up to 60%) of the money owed to you by your creditors. It's best if your bankruptcy attorney has a payment plan in place. If you have a written payment plan, it is easier for your creditors to know exactly how much they should get and it helps them to accept your offer for full payment. You can view here if you want to hire these professionals.
There are two different types of bankruptcy: chapter seven and chapter thirteen. Most attorneys will recommend that their clients file with the latter, as it carries the greatest threat of recovery. However, chapter seven is rarely filed by its own. Instead, it is usually filed by debt collectors or by the trustee (the person in charge of liquidating the remaining debts of a bankruptcy case).
One of the most common types of chapters is chapter thirteen. Unlike chapter seven, most creditors won't pursue individuals for debts when they file chapter thirteen. Instead, the trustee will auction properties owned by the debtors and distribute the proceeds to the creditors. This is in an effort to generate enough money to make debt relief arrangements. If the debtors can't pay their creditors, however, they will be pursued.
Many people who are trying to file for bankruptcy protection from their creditors will move to dismiss their case if the trustee does not get a court order to allow them to proceed. A motion to dismiss can be filed by the attorney who is representing the debtor or by anyone on their behalf. If the creditors don't respond to the motion within a specific time frame, then the bankruptcy case will proceed.
Most people who do not have enough resources to repay their debts will end up having to file bankruptcy filing. However, before they do so, they should consult with an experienced bankruptcy attorney. The attorney can help them determine the best way to resolve their debts and, in many cases, prevent them from being forced into a liquidation process. The attorney can also help them make sure that they avoid triggering the automatic stay. Automatic staydowns are one of the most feared outcomes of filing for bankruptcy protection. You can read this post to get more information on this subject: https://en.wikipedia.org/wiki/Bankruptcy.
