The Role of Bankruptcy Lawyers: Why You Need Legal Representation

Date:

Filing for bankruptcy can be stressful and deflating; however, if you have assistance from an experienced bankruptcy lawyer, the process will be significantly more manageable for you. While bankruptcy should be your last resort resolution, it does offer you an opportunity to reset your finances. Continue reading to learn about the role of a bankruptcy lawyer and how you can benefit from hiring one.

Types of Bankruptcies

Chapter 7

Chapter 7 bankruptcy, also referred to as “liquidation bankruptcy,” is designed to wipe out debt. It is most suited for individuals with low income and a large amount of unsecured debt. In most cases, chapter 7 bankruptcy includes the sale of assets to repay creditors. To qualify for Chapter 7 bankruptcy, you must prove that your household income is below the median income in your jurisdiction.

Chapter 13

Chapter 13 bankruptcy, also referred to as “reorganization bankruptcy,” offers an opportunity to restructure your debt into manageable payments over a specified period of time. In most cases, the repayment plan is within a three to five-year period. In this type of bankruptcy, clients can keep their assets by paying off the debt through regular income.

Benefits of Hiring a Bankruptcy Lawyer

A bankruptcy lawyer specializes in advising clients on the best course of legal action for bankruptcy, preparing all the required legal documents, and representing the client in court. A bankruptcy lawyer can offer expert advice on whether your case qualifies for bankruptcy, which bankruptcy to file, and what types of debts or liabilities can be reduced through filing for bankruptcy. Here is more detail on the benefits of hiring a bankruptcy lawyer:

Expert Legal Guidance

A bankruptcy lawyer can help you prepare for you what’s ahead by explaining your legal situation and options. As they have vast experience in such cases, they can guide you on each step of the bankruptcy process. This includes gathering financial information and attending a meeting with debt collectors or creditors. The lawyer can also guide you on which type of bankruptcy is most suited to your case.

Preparing Legal Paperwork

Bankruptcy cases typically involve tons of paperwork, including documents that must show that you are unable to meet your financial obligations. In addition, all the paperwork needs to be submitted within the specified deadlines. Failure to meet the deadlines can have a major negative impact on your bankruptcy case. A bankruptcy lawyer can help you stay on track to complete all the paperwork.

Deal with Debt Collectors

It can be stressful to be constantly hounded by debt collectors. If you choose to have a bankruptcy lawyer represent you, they can deal with the debt collectors so they won’t bug you. In addition, the bankruptcy lawyer can help you get a stay order which halts all collections activities, such as automatic wage garnishments.

If you are in a situation where you need to file for bankruptcy, it is best to consult with a bankruptcy lawyer who has experience in similar cases. Go here to learn more about the benefits of hiring a bankruptcy lawyer.

Subscribe

spot_imgspot_img

Popular

More like this
Related

Maximising Security with Roller Shutters

Now that security concerns are paramount for both residential...

Driving Success: The Importance of Sales Training in Business

In today's competitive business landscape, one of the key...

How to Move in Cambridge: A Comprehensive Guide to Local Movers

It is known that moving is one of the...

Beyond flat surfaces: diving into the diversity of pipes and plates in materials engineering

Materials engineering is broad and complex, dealing with the...

Discover more from TotLol

Subscribe now to keep reading and get access to the full archive.

Continue Reading