If you have filed for Chapter 11 bankruptcy, there are important questions you should ask your Harleyburg bankruptcy attorney before you sign anything. First, what is bankruptcy? Bankruptcy is a legal procedure in which a company or individual files for bankruptcy protection. The court then determines the amount of the liquidation of assets and decides how to distribute those assets. The result is a payment plan to pay off debts.

Many people file for Chapter 11 bankruptcy protection when they have large debts that they can,t pay off. Others file Chapter 13 bankruptcy protection when they have more minor debts. However, it is possible for anyone to file for either Chapter 11 or 13 bankruptcy protection. A qualified, competent, and honest Harleyburg bankruptcy law firm can help you through the process so that you can get a fresh start.

Your Harleyburg bankruptcy attorney will work with you and with your creditors to determine what is best for you as an indebted consumer. You may be told to pay off some debts, settle for less, sell the assets you can, or work out a payment plan with your creditors. In many cases, your creditor agrees to reduce your debts and you will be able to pay them off with a fresh start at a much lower interest level than you were paying before. It doesn,t matter why your creditors agree to do this; the fact remains that they will accept most offers.

Unfortunately, not every debt gets settled. In some cases, your Harrisburg bankruptcy attorney may advise you to file for bankruptcy protection again. This is because, in some states, your home is considered your personal property and is protected from creditors. While your home is exempt, it is wise to consult your lawyer to determine if it is in your best interest to file for chapter seven in order to protect your home. Most financial advisors will tell you to do so only if you have a large amount of unsecured debt, and your income and expenses are comparable to that of other people who file chapter seven. However, your bankruptcy lawyer may advise you to file if you are finding your bills adding up faster than you can make payments.

Many homeowners in our area find that their Harrisburg bankruptcy attorney will file a short sale on their house even if it means losing everything they have already worked so hard for. This is due to a fundamental flaw in the process of dealing with short sales in most states. As the homeowner, you are often confused by the language used by real estate brokers and agents when they discuss short sales. Your bankruptcy lawyer can help you understand what these agents mean when they talk about a short sale and the process generally goes like this: The bank takes possession of the house at the foreclosure auction, the trustee sells the property to the highest bidder on the auction day, and you end up owing the lender money.