Ways a Lawyer Can Help You With Bankruptcy
Are you overwhelmed by debt and you are on the brink of foreclosure? If you are one of the people who are hard-pressed by creditors, then you can consider filing for bankruptcy. Bankruptcy refers to the federal government's way of giving indebted people a fresh start where a trustee takes over the debt. However, there are both negative and positive impacts of this solution on your financial future.
Read on to learn the ways a lawyer can help you with bankruptcy.
Impacts of Bankruptcy
On a positive note, the administration of your debt gives you a fresh start since you get a lifeline to rebuild your financial status. Bankruptcy helps to stop things like collection calls, eviction, wage garnishment, and foreclosure. In other words, it is used to prevent complete failure since it is the only way that you can enjoy peace of mind against the backdrop of debt that is threatening to drown you. You can either file for Chapter 7 or Chapter 13 bankruptcy depending on your financial position
On the other hand, some people associate bankruptcy with failure, and the individuals involved are often stigmatized as they are viewed as useless people. The other important thing about bankruptcy that you should know is that it can affect your credit score for about 7 to 10 years until it is finally discharged. You may also lose property when the administrators sell some of your belongings to recover some money to cover your debt. Therefore, you must get quality legal advice before filing bankruptcy so that you can make an informed decision.
Get Sound Legal Advice From a Bankruptcy Lawyer
Filing for insolvency is a great way that can help you get out of the burdensome debt. However, understanding the entire process and how to complete the forms required can be daunting. The expert Bankruptcy Attorney Tristan Brown explains that you need strong legal advice when going through the process, and this is when a competent lawyer comes in handy. The first thing that you should expect from your lawyer is to tell you whether it would be good to file for bankruptcy or not. Indeed, you can file for bankruptcy without a lawyer, but there is a risk of obtaining undesired results.
If you choose Chapter 7, you don’t need to pay back all of your debt, but some of your property is sold to recover part of the debt you owe. On the other hand, when you successfully file for Chapter 13, you retain your property, but you have to pay specific debts through a payment plan. While many people prefer Chapter 7, not everyone qualifies to get it. Additionally, people intending to get either Chapter 7 or Chapter 13 bankruptcy need to complete a counseling course.
Your lawyer can design and offer you this course and provide answers to all the questions that you may have. Your attorney will also accompany you to a meeting of the creditors where you are expected to answer questions from the trustees. Therefore, your bankruptcy lawyer aims to give you answers to all questions that you might have before you decide to get the administration of your debts.
Prepare the Paperwork
The process of filing for bankruptcy involves many lengthy forms that you should complete. Your lawyer can help you complete these forms since they know all the details that should be provided. Insolvency attorneys also have specialized software that is used to prepare the required documents then file the paperwork at the court. You must provide your lawyer with all relevant financial information like assets, income, expenses, and credit details. Your attorney will use this information to prepare official forms to ensure accuracy.
Meet Deadlines
Deadlines are very important when dealing with bankruptcy issues. If you submit your forms late, it means that you may also experience delays in the process. In some instances, missing a deadline can lead to the dismissal of your case which can worsen your already dire situation. Other adverse impacts can affect your case. As such, your lawyer's primary responsibility is to guide you through the bankruptcy process since they know the filing procedures and the local rules. By enlisting the services of a professional attorney, you will get peace of mind since the chances of meeting all the standard expectations will be guaranteed. Lawyers also have vast experience in dealing with similar situations.
Handling Repossessions
Your attorney will also play a pivotal role to prevent repossession or foreclosure of your home when you successfully file for bankruptcy. With the assistance of your lawyer, you can keep your personal property, home, and automobiles. Your lawyer can also help to stop creditor harassment together with collection calls as the client prepares to file their bankruptcy.
Handling Family Issues
If you are going through a divorce, your lawyer knows how to work out a plan that helps to minimize the impacts of a bankruptcy on the family. The other type of aid that you can get from your lawyer pertains to the repayment of your debt. In some cases, the debtors can agree on a repayment plan with the creditors, and this can be effective through the involvement of a professional attorney. Your lawyer can also help you determine the types of debts that will be discharged. Attorneys can also help their clients to avoid debt in the future by taking different steps like preparing budgets.
If you hit financial hardships and are almost drowning in debt, you can consider the option of filing for bankruptcy. You get relief from creditor harassment and creditor calls while at the same time you rebuild your credit history. However, this solution should come as a last resort since it can impact your financial status in many ways. If you want to make an informed decision, you should enlist the services of an expert bankruptcy attorney to assist you with the necessary paperwork. Your lawyer will also explain everything that you need to know about bankruptcy, and they represent you at each stage of the process. More importantly, you can get a free consultation if you choose a reliable attorney.
