What is bankruptcy?
Bankruptcy Lawyer
First let us define bankruptcy before we start explaining everything about bankruptcy lawyer. Bankruptcy is a term or a condition in which a person is unable to secure any money from the bank as the individual is unable to repay the money that is lent by the bank. In many cases a person is declared bankrupt when the person does not have any tangible asset to mortgage with the bank in exchange for a loan from the bank. A Bankrupt person cannot operate the bank account or borrow cash from the bank unless and until that person is discharged as a bankrupt person.
In USA the intention of a federal court behind declaring(proclaiming) the consumer as bankrupt is that to help the consumer (who is in debt) ease and pay off his/her debt and thus regain financial freedom.
History of Bankruptcy
Bankruptcy came into existence when the bank faced the circumstances where the person borrowed money from one bank to pay-off the loan amount of another bank or the lender but did not repay the borrowed amount to the bank. The reason for not paying the borrowed amount was weak financial position of an individual and non possession of tangible assets (that is mortgaged by an individual with the bank in lieu of the loan amount given to the individual by the bank) which could have been converted into the cash (currency) by selling them for recovering the borrowed loan amount from the individual. Thus it can be described in brief that the Bankruptcy is a condition where the borrower who can be in the form of an individual or an organization or a firm or a company is unable to repay the loan amount to the creditor due to weak financial circumstances.
Kinds of Bankruptcy in United States of America
There are two most common kinds of bankruptcy in the United States of America .They are as follows:
• Chapter seven bankruptcy
• Chapter thirteen bankruptcy
Chapter Seven Bankruptcy and Chapter Thirteen Bankruptcy are defined in the constitution of United States of America.
Chapter Seven Bankruptcy
Chapter Seven Process is also referred to as liquidation that means selling off the defaulter’s possessions and tangible assets by the bankruptcy court in order to repay the debts of the creditor. Many of the chapter seven filers are also referred to as “no-asset” filers and are able to get the debt discharge without surrending their financial or tangible assets or the property. Even for the persons possessing tangible assets, bankruptcy laws permits some possessions to be exempted or protected from liquidation.
Chapter Seven bankruptcy exemptions vary from state to state and state to federations .But most of the states in United States of America include exemptions of the assets and possessions like tools, vehicles, pensions, primary residence and work equipment of the debtor from their list of exemptions where these valuable possessions and assets of the debtor are exempted from selling when the debtor or the defaulter is declared as bankrupt by the bankruptcy court.
Chapter Thirteen Bankruptcy
Chapter Thirteen Process is referred to as reorganization. In Chapter thirteen process the debtor or defaulter works with the bank officials to develop a plan for bankruptcy. All the legal procedures and the legal steps that are to be taken for repayment of the accumulated debts in the specific period are explained in the bankruptcy plan. But the bankruptcy plan is required to be approved by the bankruptcy court of law in order to get approved and executed and the bankruptcy plan must show the creditors that they would receive as much money as they would have received if the debtor would have filed chapter thirteen bankruptcy. Bankruptcy laws and regulations vary from state to state in United States if America.
Importance of Bankruptcy Lawyers
Bankruptcy Lawyers are those lawyers who deal with all such legal cases and legal issues related with the bankruptcy and argue for or against the bankrupt persons or individuals or the bankrupt firms or the debtors in the court of law. Bankruptcy lawyers also help the customers and clients to find a solution to their business problems or find a way out by addressing their concerns related to business consumers before the consumer bankruptcy courts. Bankruptcy lawyers also file the legal documents and present the client cases in the bankruptcy court of law on the behalf of their clients.
Prerequisites to practice Bankruptcy in Law Courts
First of all an individual is required to have completed a bachelor degree in any discipline and then only that individual can pursue a two year or a four year law course from a law institute or a law school that is recognized by American Bar Association. Some law schools also offer weekend or part time courses or distance learning courses in order to give an opportunity to the professional or working people to complete their part time law degrees. If Bankruptcy is one of the subjects at the graduation level or at the law school it becomes an added advantage for the lawyers to argue the law cases related with bankruptcy in the court of law.
Skills to be a good lawyer in bankruptcy
In order to become successful lawyer in the field of bankruptcy one must possess very good and effective communication, litigation and negotiation skills. Bankruptcy lawyers must be meticulous in writing the legal procedure and efficient in using the legal language while dealing with the legal matters based on the bankruptcy. Bankruptcy lawyers must have an analytical mind and an objective way of thinking.
Different responsibilities and duties carried by bankruptcy lawyers
Bankruptcy lawyers are mainly responsible for handling the bankruptcy litigation law cases and real estate law cases. Bankruptcy lawyers also take the briefs of the debtors and the creditors and make arguments over their law cases before the bankruptcy court of law and make to the point arguments related with the law suits in order to prove to the sitting bench their point of view.
Many times if wrong suit is filed against their clients of the bankruptcy lawyers, they see to it that their clients get maximum compensation from the individual or the firm who had sued their clients.
Careers as bankruptcy law professionals in different fields
Bankruptcy lawyers can make their careers as legal aid lawyers, consumer bankruptcy lawyers, and business lawyers and bankruptcy judges or bankruptcy judicial magistrates.
Finally one can conclude that the career of a law professional as a bankruptcy lawyer is a growing, challenging and thrilling career.
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