What does a bankruptcy & debt lawyer do?
Bankruptcy and debt lawyers help individuals and businesses deal with debts they can no longer pay. They explain the options, from negotiating with creditors to filing for bankruptcy, and protect you from collection actions and foreclosure.
Chapter 7 or Chapter 13?
Chapter 7 bankruptcy can wipe out many unsecured debts, such as credit cards and medical bills, but you must pass a means test, and some non-exempt property may be sold. Chapter 13 sets up a three- to five-year repayment plan and can help you keep your home by catching up on missed mortgage payments. Filing triggers an automatic stay, which stops most collection actions. You must complete credit counseling with an approved agency before filing.
How it works in Europe
Personal insolvency procedures exist across Europe, and EU rules have been pushing member states to offer a fresh start for over-indebted entrepreneurs. Procedures and waiting periods vary by country, so local advice is essential.
Questions to ask before you hire a bankruptcy & debt lawyer
- Do I pass the means test for Chapter 7, or is Chapter 13 a better fit?
- Which of my assets are protected by exemptions?
- Will I be able to keep my house and car?
- Which of my debts will not be wiped out?