Bankruptcy Attorney - Learn When You Need One

If you are about to declare bankruptcy in an attempt to improve your finances, you may be wondering whether you really need a lawyer. After all, you do not have much money to spare at this point, so it is likely tempting to do it alone. When considering your options, think about the factors that may determine whether you need legal help.

If you want to declare Chapter 7, you are less likely to need help than during Chapter 13 in most cases. This is because chapter 7 is a straightforward liquidation of your assets. The belongings that you have that the court says are unnecessary will be sold by a trustee, with the profits given to some of your creditors. Once this is done, and at least some of your debts are paid off, the rest are discharged, and you get a fresh start. On the other hand, Chapter 13 usually involves meeting with creditors to decide how much you can pay back and how little they will accept. You will need to sit through a few meetings with creditors, your trustee, and other people involved in the case, so you will need a bankruptcy attorney on your side. This is especially true due to the fact that most cases are not closed for three to five years.

Another aspect to consider is how complicated your case is. If you have few assets that you wish to keep, then you will likely be okay without a lawyer. However, if you have a house or car that you want to keep, as well as family heirlooms and other precious possessions, you will need to talk to a lawyer to find out how to avoid losing them. Otherwise, you risk going into your case without any assurance that you can keep certain items, so you may be surprised when the trustee sells them. Cases become more complicated when you have lots of assets that you wish to keep, so seek legal help.

Finally, if you have a few debts that you do not think qualify for this financial route, you should talk to a bankruptcy attorney. You do not want to pay the fees to the court and file the petition, only to find that the majority of your debts cannot be discharged, as this will waste your money. If you are trying to get out of paying back taxes, child support, alimony, or student loans, you should talk a lawyer. Most of these do not qualify, but there are some exceptions that may apply to you, which a good bankruptcy attorney can tell you.

The bottom line is that if you want the best chance of success when making this move, you should get legal help. Otherwise, you risk making mistakes, such as leaving out some type of debt that you should include, or assuming that you can keep items that you in fact cannot hold onto. If you want to avoid wasting the money you spend on your petition, contact a local bankruptcy attorney for assistance.