Learn How a Bankruptcy Attorney Can Help You With the Basics

When it becomes obvious that you cannot continue to handle your finances as you have been, it may be time to get a bankruptcy attorney. The first step is to meet with one to find out if you can even take this path to eventual financial freedom, as you may be advised to choose another option. If it turns out that it may be a good idea for you, though, consider what will likely occur after you meet with and hire a lawyer.

You will first talk to your bankruptcy attorney about which chapter would be best for you. Though each one has its own pros and cons, you will find that many people are not eligible for Chapter 7 if they make above a certain amount. Therefore, this choice may be made for you unless your income is around the poverty level for your state. Once you find out which option is best, your lawyer will likely ask for some files, such as proof of all your bills and income. He or she will need to have this on hand before you can officially be declared bankrupt.

The main reason for this is that what occurs next will depend on the amount of money and assets you have. For example, if you have a lot of assets, such as three cars and a house with equity, you will likely have to sell them and give the proceeds to your creditors. This is especially true of Chapter 7 since you cannot keep much in this case. Of course, if you have very little income or assets, the next step will simply be to figure out how much you will have left after paying your bills, as Chapter 13 requires you to pay off at least some of your creditors every month for three to five years. This is why your bankruptcy attorney needs a clear picture of your income and current bills.

You will then need to meet with your creditors, especially when filing for Chapter 13, as you all need to work together to formulate a monthly amount to pay. Your bankruptcy attorney should be present at the meeting to help figure out a fair amount. Sometimes, creditors do not even show up, but you need to be prepared in case they do, especially if they do not agree with the proposed amount.

A good lawyer will not only help you prepare to go bankrupt, such as through getting together documents and filing them with the court, but he or she will also provide moral support through the process. This is especially crucial during meetings with creditors or your trustee, so you should get the help of a bankruptcy attorney before you consider filing.