With the whirlpool changes in the Bankruptcy laws, rules and regulations are very stringent of late. Formerly, bankruptcy could be declared yearly with least consequences but the situation now is entirely different. One cannot get approval to file bankruptcy, unless the case is presented in the right spirit.
It is, therefore, necessary now for getting the file approved without trying it on your own. To apply the complicated laws, there is an imperative need to engage an able bankruptcy lawyer or else you will be in a dire situation making it difficult for you to wriggle out of the predicament you are in.
Chapter 13 and Chapter 7 bankruptcy rules are not pliant any more. The basic principles remain the same irrespective of rules differ State-wise. In order to decide the type of bankruptcy to be applied for, certain yardsticks are to be applied with regard to repayment of the money.
Since Bankruptcy is guided by various rules and regulations, one has to go through the legal procedures under the law. Application of Bankruptcy rules apply commences the moment insolvency is declared till the last payment to the creditor either in full or part depending on the court ruling.
Insolvency cases are filed under some given chapters of the law. They are 7, 9, 11, 12 and 13. It is best that you understand what is required of you under each chapter so that you know which rule best suits your situation. Chapter 7 and 13 are more commonly preferred because they seem to fit into many debtors’ preferred arrangement for payment.
The aggrieved party will realize that he/she has to explore the possible ways before insolvency is filed. You should always keep the insolvency option at the end and ensure that you do not fight the case alone and instead seek the services of experienced lawyer who is capable of representing your case to the logical end by keeping in regular touch with the creditor