Filing For Bankruptcy: Why You Need a Lawyer
Each year millions of people file for bankruptcy due to financial problems such as high medical bills and large credit card debts. The thought of filing for bankruptcy can be a challenging and scary experience for a person who knows nothing about the bankruptcy court system. Although you can file for bankruptcy without hiring an attorney, there are several reasons why you need a lawyer to assistance you during your bankruptcy process.
Complex Laws
Each state has laws and regulations regarding the filing of a bankruptcy petition. The laws tend to be very complex and are difficult for an individual with no law background or education to understand. By hiring a lawyer that specializes in bankruptcy law, you won’t have to worry about learning the laws regarding bankruptcy and its strict timelines. Your lawyer should already have up to date knowledge about current laws and regulations for your state.
Choosing the Right Form of Bankruptcy
There are four different types of bankruptcy that can be filed, including Chapter 7, Chapter 13, Chapter 12, and Chapter 11. Chapter 7 and 13 are the most common bankrupt chapters filed by individuals. When filing for bankruptcy, it is important that you select the chapter that is going to benefit you the most. Chapter 7 filings tend to eradicate all debt while Chapter 13 fillings allow for the creation of payment plans. By getting a lawyer, you will have someone to explain how each chapter will affect you currently and in the future as well.
Legal Advice
Lawyers are a good source of practical legal advice. If you are really unsure on whether you want to file bankruptcy or not, you should make an appointment with a bankruptcy lawyer to discuss your options. Many lawyers offer a consultation visit, sometimes free of charge, to discuss your situations or answer questions. After you have made your decision, they will review your financial situation and you will give the best recommendations based on their findings. They’ll help you to choose the form of bankruptcy you should file, will give you explicit directions for gathering documentation, and will tell you what to do with creditor phone calls and communications.
Filing Bankruptcy Paperwork on Your Behalf
Although some people think bankruptcy may be easy, it is more complex than people think. There are several important documents that have to be filed with the court system and copies must be mailed to your creditors as well. If you hire a lawyer, he or she will know exactly what paperwork has to be filed, by what deadlines, and with whom.
If you are not comfortable with bankruptcy law, it is best to hire a lawyer to save you time, money and peace of mind. Before hiring a lawyer, you should make sure he or she has bankruptcy experience and good references. The bankruptcy process will seem less daunting with help on your side.