Find a Bankruptcy Lawyer in East Providence, Rhode Island

Find the right Bankruptcy attorney in East Providence, RI

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In East Providence, 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 discharged 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 an East Providence, 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 challenging to anticipate the long-term consequences of any bankruptcy-related decisions, so the advice of a bankruptcy in East Providence could prove invaluable.

Types of Bankruptcy in East Providence, Rhode Island

In East Providence, Rhode Island, there are three basic bankruptcy schemes that are most frequently used. They are identified as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in East Providence, 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 entirely 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 East Providence 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 arrangement with the debtor. Chapter 11 bankruptcy is generally 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 - typically 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 advantage of Chapter 11 bankruptcy is that it allows a business going through it to continue operating, and to trade its stock.

How Can a East Providence Bankruptcy Lawyer Help?

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

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Life in East Providence

East Providence, Rhode Island is a city of approximately 50,000 in Providence County. It is the 5th largest city in the state of Rhode Island.

East Providence is considered a major suburb of Providence. Although it is a relatively small city by national standards, it is fairly large Rhode Island standards, and it has dozens of sites and buildings in the National Register of Historic Places. Because of its many historical sites, it is fairly popular among tourists visiting the New England region.

East Providence, Rhode Island also boasts a large number of parks for outdoor recreation.

It has been designated an "enterprise zone" by the state of Rhode Island. In an effort to promote economic growth in particular need of it, the state has a program to incentivize the establishment of businesses in designated enterprise zones, such as East Providence. For example, such as tax credits for hiring new employees, and continuing to increase the number of employees each year. Some permit fees are also waived, and the process of acquiring business permits is streamlined.

If you live in East Providence, and find yourself in need of legal representation, an East Providence, Rhode Island attorney can help.