Bankruptcy can be defined as the legal inability to pay debts or the state of having been legally declared bankrupt. Bankruptcy is a common occurrence in the United States as thousands of individuals and businesses each year find themselves in an impossible financial situation that they just cannot get out of without some sort of legal help. Bankruptcy protection may be the answer these individuals or businesses are looking for to get debt relief -- but is it the best answer? Obtaining bankruptcy protection can be a grueling process and because bankruptcy laws can be complicated, due to the many different types of bankruptcy, you should consult a bankruptcy lawyer to help you with your case. If you are absolutely at the end of your rope and bankruptcy seems like the only answer, again, you should consult a bankruptcy lawyer – especially if you own a business.

A bankruptcy lawyer will know the ins and outs of the legal system, and they will be able to discuss the different types of bankruptcy and advise you on which one is best for you. Keep in mind that there are several types of bankruptcy including chapter 7, chapter 11 and chapter 13 (the most common types) and chapter 9, chapter 12, and chapter 15 (less common). Married couples tend to utilize chapter 7 and businesses typically utilize chapter 7 and 11.

Once a bankruptcy lawyer has explained your options, they will oversee your case. In some situations, the individual or business will go before a judge and work out (and agree to) a payment plan. Or, they will have a partial or full discharge of most debt. In some cases, all debts are discharged. If this seems too good to be true, you are correct – it is. If you file for bankruptcy, your debts will be discharged, but your credit will be ruined – for up to 10 years. A bankruptcy lawyer will explain the risks to you as well as offer other possible alternatives to bankruptcy. Keep in mind that a bankruptcy lawyer will also (or should) have extensive knowledge about debt management.

If you are ready to contact a bankruptcy lawyer to explore your options for debt relief, visit the American Bar Association ( ABA ) website. The ABA features a lawyer locator, which allows the user to search bankruptcy lawyer profiles in your local area. Access to the site and profiles is free.

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