Welcome to LegalAdvice.com expert page on the topic of Bankruptcy Law. Bankruptcy Law includes many different types of topics including how to procedures for filing for bankruptcy, determining eligibility for consumer bankruptcy, assessing eligibility for business bankruptcy, dealing with debt collections, resolving credit problems and more.
Bankruptcy is a legal process that allows an individual or business that is unable to repay their debts to seek relief that allows for the elimination of a portion or perhaps even all of their debt obligations. Bankruptcy law has been in existence since ancient Biblical times in the book of Leviticus that provided for a general debt forgiveness in which debt obligations were periodically extinguished in what was referred to as a ‘Debt Jubilee’. Similarly, the bankruptcy framework that is provided under the law allows for the reduction or even complete elimination of certain types of debts under certain circumstances.
There are various types of bankruptcies that a person may qualify for under the bankruptcy code. The most common types of filings under Bankruptcy law include Chapter 7, Chapter 13, and Chapter 11. Each code of the bankruptcy law serves a different purpose and it is for the bankruptcy court to determine whether an entity qualifies to file for bankruptcy and have their obligations reduced, eliminated or not.
There are various laws that govern the collection of debt in America. The most important law is ‘The Fair Debt Collection Practices Act‘ (FDCPA). The FDCPA specifically prohibits debt collection companies from using abusive, unfair or deceptive practices in order to collect a debt. The law protects against harassment by abusive and threatening language. The law also bans consumers from contact at inconvenient times, typically such as before 8 A.M. and after 9 P.M. There are penalties for debt collectors that make excessive telephone calls and do not inform debtors of their rights under the FDCPA, specifically of a consumers right to dispute any debt and request verification of their debt in writing.
Hiring a bankruptcy attorney can greatly assist in guiding a person through the bankruptcy process even though the law allows a person to file a bankruptcy petition on their own. A person that is facing financial difficulties may want to speak with a bankruptcy attorney because the process is not quite simple and it is almost certain that improved results will result from hiring an attorney. A bankruptcy lawyer may costs about $1,500 to $6,000 to file a bankruptcy petition depending on how complicated the filing. However, the benefits are that a person will not only receive legal advice that explains whether filing for bankruptcy makes sense in the first place but also to clarify the different types of bankruptcy filings available to a client. Typically an attorney will prepare the documents and submit the paperwork to the court but a bankruptcy attorney may also be needed to make an appearances at a bankruptcy hearing or in some instances appear at a meeting of creditors.
