Financial reorganization through bankruptcy is a common practice that can help a person who is struggling to restructure. A statement of assets and liabilities is involved, in conjunction with discussions held with creditors. The object of these talks is to facilitate the debtor in managing repayments. One of the main focuses of financial reorganization is to help a debtor maintain repayments to creditors through the restructuring process.
After a bankruptcy, financial reorganization may be supervised by the court. This process focuses on restructuring finances, while protecting the debtor from creditor claims. It is then the job of the court to approve a reorganization plan, if applicable depending on the type of bankruptcy filed, allowing the debtor to begin arranging affordable repayments with creditors. There are a number of steps a debtor can take as part of financial reorganization at this point, which may include selling a home, car, or any other assets that will help him or her continue to honor repayment agreements made with creditors. However, in many cases, debtors are able to keep their homes, cars and other asset.
Financial reorganization should not be based on guesswork. If you are facing the prospect of filing bankruptcy due to financial hardship and would like to restructure, speaking to an experienced bankruptcy lawyer is recommended. At H. Lehman Franklin we help those who are becoming overwhelmed with debt to take productive steps towards regaining control of the reigns through financial reorganization.
There are many instances where there is potential for creditors to lose out when it comes to a debtor going through financial reorganization. This can occur through the loss of a portion or the entirety of investments, which is one of the many reasons it is important for debtors to consult with a qualified bankruptcy lawyer. Reaching an agreement that is agreeable to all parties involved is the most preferable outcome, as you retain as many of your assets as possible while creditors continue to receive monthly payments.
It is also worth noting that both the court and creditors are typically much more accommodating to debtors who take a mature approach to financial restructuring. So, if you anticipate you are going to be unable to maintain regular payments in the near future, consider consulting with a bankruptcy lawyer before missing payments and unnecessarily complicating any potential bankruptcy case.
Financial Reorganization Lawyer
The process of attempting financial reorganization through bankruptcy can become complex. There are a number of potential paths a debtor can take and each presents its own challenges, depending on the nature of your financial reorganization needs. It is important to consult with an experienced bankruptcy lawyer sooner rather than later, as time often plays a major role in a debtor’s ability to pull back from the brink of total financial ruin.
Contact H. Lehman Franklin, P.C. today for a free consultation so we can fully evaluate your needs. Lehman Franklin and Kimberly Ward have the combined skills you need to navigate the complexities of financial reorganization through bankruptcy. Our combined knowledge will provide you with the support you can lean on to get through this difficult time in your life.