Bankruptcy Lawyer: 3 Reasons to Attend a Consultation

f you are about to go bankrupt, and are not sure whether to hire an attorney, there are a few ways to help you decide. The first step should be to get an initial consultation, which most attorneys offer for free. This will help determine whether you are eligible to file, and whether it will help your situation. It will also allow you to choose the best bankruptcy lawyer for you. Before deciding whether to hire one, consider the facts surrounding your case.

If you are thinking about filing chapter 7, you have to ensure your income is below the average for your area. If not, then you have to pass the means test, which means you need to show that you do not have enough income left after expenses to pay back creditors. If you are unsure of how to access and pass the means test, or if you have taken it and do not agree with the results, you should talk to a bankruptcy lawyer. It is important that you file the correct chapter for your situation. Otherwise, you could end up in legal trouble, or you may find that going bankrupt does not help your financial situation the way you thought it would.

Having lots of assets means you should talk to a bankruptcy lawyer, too. This is because you stand to lose a lot if you take this route. By contrast, if you have few assets and do not make much money, filing chapter 7 is probably your best bet, and you may not even need an attorney. For example, if you do not own property or a car, and do not have much money in savings and checking accounts, then the court cannot take much from you when you file. However, if you have at least one property, one or more cars, and cash stashed in several accounts, you will need the help of an attorney to figure out what you stand to lose.

Not every bill is wiped out when you file. For instance, student loans, alimony, child support, and back taxes all still need to be paid after filing. Therefore, if these constitute most of your bills that you can no longer afford, you should look at other options. A bankruptcy lawyer can tell you whether your situation would be improved by filing. If it turns out that few of your debts would even by wiped out by bankruptcy, then it does not make sense to take this route, as you would reduce your credit score without the benefit of getting rid of debt. Thus, the advice of an expert may keep you from making a major financial mistake.

Whether or not you suspect you would benefit from this move, you should talk to a lawyer. Getting a consultation enables you to see the pros and cons of filing. If it turns out that you should take this route, you can find out more, such as which chapter is best for you, and what you stand to lose. If it turns out that your case is rather straightforward, you may find out you do not need legal help, though this outcome is rare