Find a Bankruptcy Lawyer in Cranston, Rhode Island

Find the right Bankruptcy attorney in Cranston, RI

In Cranston, Rhode Island, bankruptcy is a judicial process in which the debts of a person or business can be cleared or restructured. This allows the debtor to climb out of a financial hole, and move on with a clean slate, which is often more economically useful than requiring the debtor to pay off everything they owe. Of course, one should never view bankruptcy as a "get out of debt free" card, allowing someone to be relieved of their requirement to pay their debts just because they don't want to. It is meant to serve as a lifeline, preventing uncontrollable debt from resulting in complete financial ruin. Accordingly, it is best treated as an option of last resort, because it can carry with it significant negative consequences, which must be weighed against the possible benefits. For example, filing for bankruptcy can heavily damage a person's credit rating.

Accordingly, it might be a good idea to consult with a Cranston, Rhode Island bankruptcy attorney. Your lawyer will be able to counsel you about your options, including alternatives to bankruptcy, if such alternatives exist in your case. Whatever the result, it is often difficult to foresee the long-term consequences of any bankruptcy-related decisions, so the advice of a bankruptcy in Cranston could prove invaluable.

Types of Bankruptcy in Cranston, Rhode Island

In Cranston, Rhode Island, there are three basic bankruptcy schemes that are most commonly used. They are known as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Cranston, Rhode Island will be very similar to those in any other part of the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is verified, and the proceeds handed over to the creditors, the debt is perceived as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are totally or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

The other popular bankruptcy system in Cranston is Chapter 13 bankruptcy. Under this system, the debtor's debts are restructured, instead of discharged. This involves creating a new repayment plan that the debtor will find manageable, given his or her income, and that will result in the creditors being paid in a decent amount of time. When a repayment plan is authorized by a court, creditors are legally barred from trying to collect under the original terms of their agreement with the debtor. Chapter 11 bankruptcy is primarily used by businesses, though it can be used by individuals (which is quite rare). Chapter 11 bankruptcy requires that the debtor come up with a reorganization plan - essentially telling the court how they propose to cut costs, streamline their operations, and pay their debts. This plan must be authorized by the participating creditors through a simple majority vote.

One major advantage of Chapter 11 bankruptcy is that it allows businesses to continue their operations while the process plays out. Furthermore, their stock can still be bought and sold.

How Can a Cranston Bankruptcy Lawyer Help?

The need to weigh all the options and consider the costs and benefits of applying for bankruptcy in Cranston cannot be overstated. If you are considering filing for bankruptcy, it would be a good idea to speak with a Cranston bankruptcy attorney beforehand.

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Life in Cranston

Cranston is located in Providence County, Rhode Island, It was once called Pawtuxet. It is the third largest city in the state, with a population of 80,387 per the 2010 census.

Interestingly, Money Magazine named the city amongst the "100 Best Place to Live" in 2006. CQ Press's conducted research ranks Cranston amongst the "Twenty-Five Top Safest Cities in the U.S."

Popular attractions include the Warwick Mall and the CLCF Building. One unfortunate reason the city is known is because in 2010, the Pawtuxet River overflowed, adversely affecting many prominent sites and residences around Cranston.

Famous residents include A.J. Smith, Deon Anderson, Hugh Duffy, Mark Van Eeghen, Michael Parkhurst, Vinny Paz, Will Blackmon, Tom Denucci, Jeff Diehl, and Mike Stud.

Cranston is also home to attorneys that are able to provide residents and local businesses with excellent legal advice. Therefore, residents and business owners do not need to travel far to have their legal needs taken care of.

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