Filing for bankruptcy is a fantastic approach to get out from under heavy debt, and most people feel tremendous release when their bankruptcy case is closed. However, comprehending the procedure and completing bankruptcy paperwork can be stressful. That’s where a bankruptcy attorney comes in.
A bankruptcy attorney will not only offer legal advice but they will also handle the paperwork from beginning to end. Individuals who are contemplating bankruptcy have the option to do it without an attorney. And, if your case is straightforward, you might save money by handling things on your own.
However, this isn’t always the case. Let’s take a look at why you need a bankruptcy lawyer! Here are 3 reasons why.
3 Reasons You Need a Bankruptcy Attorney
- They Know Which Chapter Is Better for You
There are two types of bankruptcy: Chapter 7 and Chapter 13. Each has advantages and disadvantages, and you may not know which one is the finest without the assistance of a bankruptcy lawyer.
Chapter 7 allows you to eliminate all unsecured debt, whereas Chapter 13 enables you to pay back your debt over time. Chapter 7 is more difficult to obtain; however, under Chapter 13, you may not necessarily see a reduction in the amount you owe. An expert bankruptcy lawyer can assist you to evaluate the benefits and drawbacks of each chapter and how they apply to your situation.
They’ll advise you on which chapter is best for your situation. If Chapter 7 is the one your lawyer believes will benefit you the most, they will be able to guide you through the procedure and offer suggestions for what papers you’ll need to qualify for that chapter.
- They Will Save You Money
The majority of individuals who attempt to file bankruptcy on their own do so because they are already in a poor financial position and believe that hiring a lawyer will just make things worse. This is false, and using a bankruptcy lawyer may save you money in the long run.
First, having a lawyer will ensure that you receive the best possible outcome in court because they will already know how to negotiate successful bankruptcies. Second, with a lawyer, you will undoubtedly go through the bankruptcy procedure faster than if you attempted it on your own.
This is due in part to the fact that you won’t have to do any research before acting, but it’s also because your attorney will not make any costly blunders that might result in delays or even the case being dismissed. Yes, you will have to pay for a lawyer, but it will be well worth it in the end.
- They will give you peace of mind
You don’t want to add to your stress levels by attempting to navigate the complicated bankruptcy procedure when you’re already stressed enough with your financial problems. Hiring a bankruptcy lawyer is almost certainly the most important thing you can do for yourself by relieving the burden off your shoulders and allowing them to take over the perplexing labyrinth that is bankruptcy.
Can I File For Bankruptcy Without an Attorney?
Individuals are not required to hire a lawyer to declare bankruptcy (corporations and partnerships do). Even so, filing without the assistance of a bankruptcy lawyer is uncommon. In 2015, 9.2% of individuals who filed for Chapter 7 bankruptcy and 8.5% of those presenting a Chapter 13 case did it on their own.
The final success rate is also quite significant. According to statistics published by the U.S. Bankruptcy Court for the Central District of California, only about 2% of pro se Chapter 13 filers can get a repayment plan confirmed (approved by the court), as opposed to 60% of debtors represented by an attorney. (The first step in a Chapter 13 case is to obtain confirmation of your payment plan.)
Bottom Line: You might think you don’t need a bankruptcy attorney but, the truth is that you and your finances (and your mental health) need one!
How Can You Tell If You Need A Bankruptcy Attorney?
Feel like you might need a bankruptcy attorney but you’re not sure if your circumstances fit into the mold? Here are some signs you may need to call us:
- You are unable to pay your bills
- You receive constant calls from creditors and debt collectors
- You feel unsure how to approach debt piling up
- You have bounced checks
- There’s no cash flow
- You feel that you need representation in court
You may want a Chapter 11 bankruptcy lawyer if your company is having difficulties. A Chapter 11 bankruptcy attorney can assist you in restructuring your business and re-organizing your obligations so that they may be paid later. However, if you know you’ll have to shut down your firm, you’ll need a Chapter 7 bankruptcy lawyer, who will essentially give the creditor ownership of your company in return for a debt cancellation.
If you’re filing Chapter 7 bankruptcy on your own, you may enlist the help of a Chapter 7 bankruptcy attorney if you can’t pay off your debt over time. In return for part of your personal belongings, you will be given a financial fresh start. A Chapter 13 bankruptcy lawyer might assist you to restructure your debts and negotiate a payment plan with creditors if you are attempting to repay your debt but just require more time.
Benefits of Having a Bankruptcy Attorney By Your Side
Although bankruptcy law is a complex legal subject, there are things you may do to reduce the time it takes to file. You may spend some time learning about it, but you might not discover everything you need to know. Keep in mind that if you make one error, the procedure will be delayed. A bankruptcy lawyer can ensure that you fully understand all of the information necessary for your case. Your attorney can also ensure that everything is done correctly so that you may go through this process as quickly as feasible.
You probably have to deal with irritating phone calls if you have debt you can’t pay. These calls may put you into a tailspin. However, once you file for bankruptcy, you will no longer have to endure this harassment. An attorney can contact your creditors on your behalf, saving you time and stress.