Anything involving bankruptcy can feel a bit overwhelming. There are many rules and regulations involved in bankruptcy as a whole, and then each type of bankruptcy has its own specific rules and regulations. One of the many elements involved in bankruptcy is bankruptcy protection. The bankruptcy lawyer team at Groce & DeArmon, P.C. has the answers you need to understand the ins and outs of bankruptcy protection.
What is Bankruptcy Protection?
Bankruptcy protection comes into effect when an individual or company files for bankruptcy. Simply put, bankruptcy protection is a status that helps those who are unable to pay their debts in full. After filing for bankruptcy, this protection prevents creditors from harassing those going through the bankruptcy process. This automatic stay helps the person focus on restructuring their debts. By hiring an experienced bankruptcy law firm like Groce & DeArmon, the debtor can be assured to have the best help on their side during the bankruptcy process.
If a creditor was not informed of the bankruptcy filing and continues to send notices to the individual or company, that creditor must be informed by the debtor that they have filed for bankruptcy. The notice can also be sent through a bankruptcy lawyer, who can then manage all other communication between the debtor and the creditors.
Bankruptcy protection covers the assets of the debtor. This protection helps to ensure that the debtor will not lose all of their possessions due to financial difficulty. If a person who has filed for bankruptcy does not have bankruptcy protection, they run the risk of losing all of their assets.
Bankruptcy Protection and Bankruptcy Chapters
The group of laws in the United States that govern bankruptcy are referred to as the Bankruptcy Code. Bankruptcy protection is present in all the common types of bankruptcy, including Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy often results in the liquidation of most assets to pay off debts, while Chapter 13 bankruptcy may allow the debtor to retain some assets. A bankruptcy attorney will be able to assist in either situation, depending on the specific situation.
Bankruptcy Advice from Groce & DeArmon, P.C.
If you are filing for bankruptcy and would like an experienced team to help you along the way, Groce & DeArmon, P.C. is here to help. We have the knowledge and experience to handle your case as efficiently as possible. For more information about our services and to schedule your free consultation, check out the Groce & DeArmon, P.C. website or contact our office today.