A Bankruptcy Attorney Can Help in Various Ways

If you are considering going bankrupt to improve your financial situation, you are encouraged to get a lawyer. While this process is usually helpful in getting rid of your debts, and can be completed without legal help, it is often complex so a lawyer is advised. Consider some of the specific ways a bankruptcy attorney can help you.

The most popular chapters for individuals are 7 and 13. With chapter 7, you have to sell, or liquidate, all nonexempt assets. Though you lose most of your property, you end up without any debt, allowing you to start fresh. The only exception is if you owe the government money, as you cannot wipe out such debt through chapter 7. Therefore, if you owe money on student loans, child support, or taxes, you may opt for another route since these debts will not be discharged. Instead, you can declare chapter 13, in which you create a payment plan so you can pay back creditors over a period of three to five years. In return, you get to keep most of your assets, so this may be best if you do not want to lose your belongings and are okay with paying back your creditors over time. You do have to have regular income for this route, though. Your bankruptcy attorney should counsel you to determine which chapter you qualify for.

Once you have chosen the best route for your situation, you will have to file several documents with the court. For example, you will need a list of assets, debts, income, and expenses, as the court needs to know what your financial situation looks like. The court also needs to know about any financial contracts you are a part of, as well as any sources of income you may have, including interest from certain accounts. You need to be accurate since giving the wrong information can result in your case being dismissed. Lawyers tend to help clients get their paperwork together and submit to the correct court location before any deadlines pass. Thus, a bankruptcy attorney can help you stay organized and on top of all the requirements for this process.

There are a few other requirements during the process. For instance, you have to attend a crediting counseling class before filing, and your lawyer can help you sign up for this. You also have to meet with creditors to determine which debts can be discharged. Meeting with those you owe is especially important if you declare chapter 13 since you need to make a payment plan. You will need the advice of your bankruptcy attorney before these meetings.

Attorneys are not required when you go bankrupt, but they are definitely advised. You probably need someone to help you avoid missing deadlines or turning in the wrong paperwork, as your case can easily be dismissed even when you make a mistake. Therefore, it is worth your time to go to a free initial consultation to find out whether you are eligible for this pathway, and how you should proceed.