Declining bankruptcy may be the best option if you’re having financial problems. Unfortunately, because of the complex legal issues involved in a bankruptcy filing, it can be challenging to go through the bankruptcy procedure independently. So, experts recommend hiring a Bankruptcy Attorney.
By reading this article, find out if you need a lawyer and what you may expect if you decide to employ one or represent yourself in a bankruptcy proceeding.
Various Forms Of Bankruptcy:
The Bankruptcy Code of the United States describes six distinct forms of insolvency. Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are the two most popular forms of bankruptcy.
Chapter 7 bankruptcy is sometimes known as liquidation because it allows for the complete cancellation of debt upon filing. This code is for folks who need to catch up on their regular credit card or loan payments. If you file for Chapter 7 bankruptcy, the US court-appointees trustee will sell your assets (liquidate them) for cash and divide the money among your creditors. In some cases, you can keep possessions like a car and furniture. Once the court finalizes your Chapter 7 bankruptcy, you will no longer be responsible for paying any discharged debts.
Chapter 13 bankruptcy (also known as wage earners or repayment plan bankruptcy) allows you to repay your debts over three to five years. Once you’ve paid these bills, you’ll no longer have to worry about them. You can preserve your home from foreclosure if you file for Chapter 13 bankruptcy instead of Chapter 7. You must keep up with your mortgage payments under Chapter 13 and any other bills you may have.
Reasons Why You Need A Bankruptcy Lawyer
The following are examples of how a Bankruptcy Lawyer could justify their retainer:
- Assisting you in determining whether or not to file for bankruptcy.
- Helping you decide which form of bankruptcy is best for your situation (the two main types are Chapter 7 and Chapter 13).
- Guiding what assets you may be eligible to keep.
- Offer your thoughts on the fiscal repercussions you’ll be experiencing.
- Helping you decide if it’s in your best interest to keep making payments to creditors.
How To Search For A Good Bankruptcy Attorney?
· Hire A Specialist
If you need legal help with bankruptcy, it’s better to choose a lawyer that focuses their practice on that subject. Generalist lawyers are unlikely to understand the finer points of bankruptcy law or be current on this field’s most recent legal developments.
Moreover, it’s also helpful to talk to locals who have experience with the same thing. Although it may be difficult, this is likely to be fruitful because learning from the experiences of others who have gone through the same situation may be enlightening.
· Find A Bankruptcy Attorney With Experience
It’s not always true that someone with more years of experience is more qualified than someone with less. The number of successful bankruptcies they have handled should be the deciding factor.
Other lawyers adopt a more generic approach, filing cases whenever they feel like it. They do not have the necessary knowledge if they have been practicing law for 25 years but have little to no experience with bankruptcy.
It’s possible to investigate a lawyer’s past in numerous ways. One option is to ask simply; most people are happy to share basic information about themselves and their situation if enquired. Profiles of attorneys, including their specialties and any disciplinary history, are routinely kept by state bar bodies. You can also research an attorney’s work in the appellate courts by looking for any briefs or briefings they filed.
· Get In Touch With A Lawyer You Can Trust
The bankruptcy attorney you choose should be with whom you feel comfortable communicating. Find a lawyer who will listen to you and get to know the specifics of your situation.
Avoid making a hasty choice based on cost alone. If you hire a good lawyer, you might come out ahead, and they win your case. Avoid low-cost bankruptcy lawyers at all costs; they may be cutting corners that can negatively affect your case. Try to get some personal recommendations and do some research online.
Bottom Line
A bankruptcy filing is a life-altering choice. Bankruptcy will remain on your credit report for seven to ten years, depending on the type of bankruptcy you declare. Think long and hard about whether you want to employ a bankruptcy attorney or take on the more challenging task of handling the bankruptcy process independently.
