If you are a debtor and want to know about Bankruptcy Law firms, then this article will help you understand exactly what they are and what is required from you. You might be wondering which lawyer you should choose from when faced with the possibility of being filed for bankruptcy. If you are reading this then most probably you are not among the lucky ones who have not been sued yet. The first thing that you must do is to understand what a Bankruptcy Law Firm is all about.
If you as a debtor are under creditor pressure, then you might have to act fast to make sure that your legal rights are secured. However, it may not be easy for you to get all the information you require from the creditors. Also keep in mind that if you as a member of the creditor committee, you will be able to hire experienced bankruptcy attorneys for your defense without paying even a single penny from your pocket. This will definitely reduce your expenses.
There are two types of Bankruptcy Law Firms, the Private Company and the Government Organization. A Bankruptcy Attorney of Private Company has to work on a ‘contingency basis’, which means that he will not charge any fees until the creditors have been paid off. Thus, if the debtor files for Chapter Seven (the most common type of bankruptcy) then the bankruptcy attorney would have to consult with the Solicitor’s Office for the government or the Department of Justice. In case of a private company bankruptcy attorney, his main duty will be to conduct the entire proceedings, from filing to discharge. The main advantage of this type of Bankruptcy Law Firm is that they are mostly run by people who are very experienced in the field of bankruptcy proceedings.
On the other hand the Government Organization or the Department of Justice is primarily responsible for the enforcement actions. Their main function is to provide for the safety and economic welfare of America’s debtors. For this they have to sue companies that are misusing their debtors’ rights. Some of the main examples are Enron and WorldCom. Both of these firms had to face severe punishments after their debtors brought lawsuits against them for violation of the rights of debtors. Let us know more about this by clicking on the given link Arizona bankruptcy lawyer.
If the debtors are unable to pay their creditors, the only option available to them is to file for Bankruptcy. The main responsibility of Bankruptcy Attorneys is to protect the interests of their debtors. Many of the bankruptcies nowadays are caused due to fraud conducted by the credit card companies and the financial institutions. Therefore it is the duty of the Bankruptcy Attorneys to stop the creditors from taking such actions.
They can do so by initiating lawsuits against the defaulters. In some cases, the attorneys are also asked by the creditors for providing legal services for free. Such deals can be used to lure people who have little knowledge about the legal rights of their clients.