Most people run into financial difficulty at one point or another. For some, it is easy to get back on their feet. For others, the financial damage is so severe that bankruptcy is the only way out. Chapter 7 bankruptcy would remove all unsecured debt, and it can have a serious effect on the individual’s credit score. Chapter 11 gives the individual more time to repay their debts, and it doesn’t damage their credit score as much. If the person chooses to file for Chapter 11, they should hire Chapter 11 Bankruptcy Attorneys in Lake Worth FL. There are a few reasons this is so important.
Chapter 11 Is Much More Involved Than Chapter 7
Chapter 11 is also known as rehabilitation bankruptcy, and it is much more involved than Chapter 7. Chapter11 gives the individual a chance to reorganize their debt. There is a lot that goes into a Chapter 11 bankruptcy, and the individual will need an attorney to help walk them through it. Since this type of bankruptcy is used primarily by businesses, and the future of the business is at stake, the individual should not file without an attorney.
Filing the Paperwork
The paperwork involved with Chapter 11 bankruptcy is extensive and complicated. If the individual doesn’t fill the paperwork out correctly, the request would be dismissed. If they make certain errors, the bankruptcy court could see them as fraudulent, and a fraud investigation can be opened. This will cause the individual more trouble than their finances have.
Creditors Will Stop Calling
One of the biggest headaches people in debt have is the calls from creditors. The daily letters in the mail can also be frustrating. When the individual hires a bankruptcy attorney, they can give their creditors the attorney’s phone number, and the calls will stop.
A Simple Mistake Can Ruin It All
If the individual makes one simple mistake when filing, the bankruptcy trustee can throw the case out. It will be quite a while before the individual would be able to file again. The best way to get through the process quickly and efficiently is for the individual to hire a bankruptcy attorney.
If a person is having severe financial difficulties and filing for bankruptcy is their only option, they should hire Chapter 11 Bankruptcy Attorneys in Lake Worth FL. For more information, browse our website.