Determining how many bankruptcy lawyers exist in America is almost impossible, but there is data that shows there were 1,225,452 practicing attorneys in America as of April 2011. Unfortunately, it is difficult to tell how many of those attorneys specialized in bankruptcy.
What is bankruptcy and what does a bankruptcy attorney do?
To better comprehend what a bankruptcy lawyer does, it is important to understand what filing bankruptcy means. There are many types of bankruptcy available in America. The various types enable individuals to file bankruptcy as an individual or as a corporation. Many individuals file bankruptcy when they can no longer pay the debts they owe either personally or through their business.
- Professional definition of bankruptcy:
The American Bar Association defines bankruptcy as a legal course of action through which businesses and individuals can achieve a fresh start financially after being in such a difficult financial situation that they are unable to repay their agreed upon debts.
A bankruptcy attorney’s job:
The job of bankruptcy attorney is to make the bankruptcy process easier for their clients. They will outline all assets that will be in danger if a certain type of bankruptcy is filed and recommend the best course of action for their clients.
Types of bankruptcy:
There are four types of bankruptcy filed in the United States. They are as follows:
- Chapter 12:
Chapter 12 bankruptcy is implemented mainly by farm owners.
- Chapter 11:
Chapter 11 bankruptcy is the most complex bankruptcy to file. It is usually used by businesses but can be implemented by individuals as well.
- Chapter 13:
Chapter 13 bankruptcy is similar to Chapter 11 but it is geared more towards individuals.
- Chapter 7:
Chapter 7 bankruptcy is the most common type of bankruptcy filed in America. It is a liquidation bankruptcy, which implies that the individuals will sell any nonexempt assets to repay their debt.
Why hire a bankruptcy attorney?
Some individuals feel they can do without the services of a bankruptcy attorney when filing for bankruptcy. However, the services provided by a skilled bankruptcy attorney are invaluable. Individuals who try to go it alone without the help of an attorney often end up being harassed by creditors or make some type of error when filing their bankruptcy that leads to various complications. It is beneficial to an individual to hire a skilled bankruptcy attorney to advise them during the process of filing bankruptcy.
According to the Bankruptcy Institute, during the first quarter of 2012, there were 355,000 individuals who filed for bankruptcy. In the same quarter in 2011, 1.37 million individuals filed bankruptcy, and in 2010, there were 1.55 million individuals who filed bankruptcy. With this number of individuals filing for bankruptcy, the amount of bankruptcy lawyers needed is vast. As common sense would dictate, when the economy struggles, more and more individuals seek the services of highly skilled attorneys in order to file bankruptcy. Therefore, more individuals need a bankruptcy specialist today than ever before.
Click here to learn more about our bankruptcy lawyers in Colorado Springs at Maceau Law.