Bankruptcy refers to the process of law that allows a person in financial difficulties to overcome and survive the crisis. This can be done by legally redistributing, reducing, or extended the terms of the debt. A lawyer is needed to handle these complex legal matters. A lawyer that specializes in these cases is often referred to as a bankruptcy lawyer or bankruptcy attorney.
Not every lawyer is a bankruptcy lawyer. Just as doctors, and even mechanics, specialize in certain fields, so do lawyers. While any lawyer might take on a bankruptcy case, bankruptcy lawyers have an interest in this field, have perfected their knowledge and understanding of the relevant laws, and are experienced in handling these cases.
The bankruptcy specialization is specified according to each state. Some states have a recognized specialty in bankruptcy law, while some do not. A lawyer so designated will have certain training and certifications that make him or her an expert in that field. Even if your state bar does not recognize a designation for specialization in bankruptcy law, there will be a local lawyer referral agency that can recommend an attorney with the experience and qualifications to do a good job in bankruptcy cases.
A person in dire financial straits may be well advised to seek out a specialized bankruptcy lawyer. They can help the client to find legal solutions to their debt problems, and help to ameliorate or avoid the most serious consequences of bad debt, such as loss of property and long-term damage to credit status.
Lacking a specialized bankruptcy lawyer, a person may make mistakes by agreeing to the demands of creditors through not understand their rights as well as their obligations. Without the extensive knowledge a bankruptcy lawyer brings to the case, the debtor may lose assets that could have been spared to help rebuild a life after bankruptcy.
Bankruptcy law, while based on the U.S. statutes, is also subject to state requirements. It is important to find a bankruptcy lawyer who understands the local as well as national laws.
It should be remembered that while bankruptcy law is designed to give an unfortunate debtor a chance to survive the crisis, save some assets and move on, the law is also designed to make sure that the creditors are treated fairly and receive the best possible return on the debt. A competent and ethical bankruptcy lawyer will stand in favor of the debtor, while recognizing the claims of the creditor, and will work toward the best solution possible for all parties.
