Bankruptcy Consultant

Contemplating bankruptcy? A competent bankruptcy consultant can make filing Chapter 7 and 13 petitions a lot less stressful. Consultants are attorneys, lawyers, and legal assistants who are knowledgeable about U.S. Bankruptcy Court requirements and can help consumers compile, process and file accurate and timely petitions to resolve indebtedness. Debtors can expect to pay a bankruptcy consultant a moderate fee, which can be set up on a payment plan. Cash-strapped consumers may be tempted to file on their own, but the legal fees incurred are well worth the money. Because laws have changed, a knowledgeable consultant can accurately interpret the law to a client and efficiently prepare the reams of paperwork required for filing.

Facing bankruptcy can be a formidable challenge. Harassing phone calls from creditors and the threat of impending foreclosures, repossessions and wage garnishments can make personal insolvency an ordeal. But a qualified bankruptcy consultant can ease the anguish and frustration for debtors who elect to file. A professional financial consultant is the debtor's advocate, someone who supports and pleads their case in the proceedings court room. As the Greatest Advocate of all time, Jesus Christ lives eternally to plead the case of anyone who sincerely seeks to turn from sin and receive salvation and a right standing with God: "My little children, these things write I unto you, that ye sin not. And if any man sin, we have an advocate with the Father, Jesus Christ, the righteous." (I John 2:1). Dealing with a financial crisis can sometimes lead to a soul searching assessment of one's spiritual condition.

Once an individual or business has decided to file for insolvency, seeking bankruptcy assistance from a qualified consultant, or advocate, is paramount. A knowledgeable consultant will work closely with the debtor to prepare detailed listings of assets and liabilities, gather information about outstanding loans and payments, and accurately assess monetary values of automobiles, real estate holdings, and personal property. Financial attorneys and paralegals can help individuals and businesses determine the correct chapter to file and advise their clients as to what can be expected after the proceedings are finalized. Consultants also provide bankruptcy assistance in working out negotiations with creditors as an impartial third party, acting as a "buffer" and powerful liaison between the client and creditor.

If a consumer elects to file a Chapter 7 petition, also called a liquidation, a court-appointed trustee will collect the debtor's assets, with the exception of certain exempt property. The trustee then sells, or liquidates, these assets and distributes monies collected to the debtor's creditors. The court then grants a discharge to the debtor and he or she is released from those discharged debts. Unfortunately, not all debts can be discharged. Back taxes owed to federal and state governments, child support and alimony payments, government student loans, and mortgage payments are all non-dischargeable debts. While Chapter 7 Bankruptcy offers what some term a "fresh start," the proceeding can be intimidating since creditors have a constitutional right to enter the debtor's property and lay claim to assets they consider adequate payment for outstanding monies owed. A good bankruptcy consultant can lend sympathetic and professional support as a debtor endures the potentially humiliating process of distributing his or her assets.

Unlike a Chapter 7 petition, debtors filing under Chapter 13 usually have a regular income and are capable of repaying outstanding debts in accordance with a court-ordered repayment plan -- usually over a period of up to five years. The advantage of the filing Chapter 13 is that debtors get to keep some valued possessions. Chapter 13 petitions also afford debtors the opportunity to reorganize personal finances and eventually recover from a financial collapse. However, one distinct disadvantage of filing Chapter 13 is that many debtors fail to complete the repayment plan in the allotted time, thereby defaulting on their court-ordered proposal. Outstanding debts may become due and payable in the event of debtor default. In addition, a record of a Chapter 13 proceeding also remains on the debtor's consumer credit file and may adversely impact their ability to obtain future financing. Some banks and financial institutions may look more favorably on a consumer who has filed Chapter 13 and attempted to repay outstanding debts, rather than one who has filed Chapter 7 and had most of the debt discharged. Consumers should seek legal counsel on the advantages of filing either of these two types of petitions.

Debtors seriously considering filing a petition for financial insolvency can find bankruptcy assistance by surfing the Internet. Because we live in a global society where help is only a mouse click away, debtors no longer need to employ financial counselors in their own backyard. Virtual consultants can help file insolvency cases online, communicating by telephone, email, and regular U.S. postal service. If individuals prefer a more hands-on, face-to-face approach, the Internet will have listings for consultants, attorneys and lawyers in your local vicinity. Another good place to look for bankruptcy assistance is in the local telephone directory. Look under "attorneys." Most bankruptcy consultants will schedule an initial consultation free of charge. Other resources for finding bankruptcy assistance include family and friends, legal referral services, and human services agencies. Once a decision has been made to file and proceedings have begun, debtors can expect harassing phone calls from collection agencies to cease and threats of foreclosures and repossessions to be silenced. A professional bankruptcy consultant, acting as the debtor's advocate, can help turn a negative experience into an invaluable lesson, hopefully never to be repeated.

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