Bankruptcy is when an individual or a company files for relief of debt. There are specific courts in the United States who handle bankruptcy rulings and specialty lawyers who handle these cases.
There are different types of bankruptcy that serve the different needs of different individuals or companies. Bankruptcy lawyers must know the ins and outs of filing and proper documentation so that appearances in court go smoothly and there are no fines or delays applied to the person or company applying for relief due to mistakes or unorganized filings. There are multiple choices of filing that can confuse persons not familiar with bankruptcy filings. Bankruptcy attorneys and business bankruptcy attorneys specialize in whether a client should file chapter 11 (reorganization), chapter 7 (straight bankruptcy), chapter 9 (reorganization for a municipality), chapter 12 (reorganization of debts for farmers with regular annual income) or chapter 13 (debt adjustment for individual who wishes to keep some assets) bankruptcy.
When bankruptcy attorney files on behalf of a client, whether it be an individual or, in the case of business bankruptcy lawyer, an entity like a small business or corporation, it is called a voluntary bankruptcy. There are many stipulations to bankruptcies, such as what bills can be discharged and what bills need to be paid, for how long payments can be extended, and under what chapter bankruptcy a debtor may file.