Why You Need Legal Counsel When Filing for Bankruptcy

You’ve become tired of the constant calls from your creditors. You are receiving threatening letters daily from the companies you owe money to. Your debt situation is out of control. You have decided that bankruptcy is your best option. 

Now, you may be tempted to file bankruptcy on your own. You may believe you could save the money you would pay an attorney. You could also be making a huge mistake that could cost you far more than attorney fees in the future.

Valuable Legal Advice

Unless you are an experienced bankruptcy attorney, the process will seem complicated. Legal professionals are able to provide you with important advice and answer any questions you have about bankruptcy. 

They know how to help when you feel lost and confused. These attorneys can help you make the best decision when it comes to the method of bankruptcy you should file and more.

End Harassment

A bankruptcy lawyer, like those at McCool & McCool, knows all the ins and outs of the business. A competent lawyer will know how to have debt collectors stop calling your house and business. 

If creditors continue to call once you have filed for bankruptcy, these lawyers will tell your creditors to contact them directly. They will handle these issues so you no longer have this problem.

Professional Relationships

An attorney will have developed important relationships with clerks, judges as well as other attorneys. They may also be familiar with your creditors. 

Their significant knowledge of the court system and those who work in it will be a huge benefit for your case. These professional connections can help them know the stage of your bankruptcy and keep your case moving through the legal system.

Residual Issues

One or more of your creditors could disregard your debt discharge. They may continue to try and collect on your discharged debt. It is also possible they could continue to report late payments on your credit report. 

An attorney will know how to handle this situation. It may require them to petition the court for injunctive relief. This will stop the creditor’s behavior in this situation.

Post-Bankruptcy

Once you have successfully filed for bankruptcy, you will then need to work on repairing your credit. This is when an attorney can provide you with important suggestions when it comes to rebuilding your credit rating. 

They will know how this can be done responsibly. The goal will be to set you up for financial success. They will help you be in the best financial position going forward.

You should realize bankruptcy is something that can happen to anyone. The yearly bankruptcy filings in the calendar year 2020 totaled over 500,000. 

This is a time when an innocent mistake can cause serious problems in the future. A lawyer will know how to guide you through the entire process. Your bankruptcy will be done correctly and be a benefit to you.

Tips On Choosing A ‘Winning’ Bankruptcy Lawyer

Bankruptcy is a situation that can be very stressful for you and your family. It can drain you emotionally, physically, mentally and psychologically. That’s why it’s best to hire a lawyer to help you through the whole process. 

However, you don’t just need a lawyer, you deserve the best, one who is highly experienced and excellent at their job. You need to look for a lawyer who can handle your case skillfully, yet at a reasonable cost.

This article will give you knowledge on choosing a ‘winning’ bankruptcy lawyer

Look for referrals

Your family members and friends can give you referrals to help you in your quest to find the best lawyer for you. You can also talk to lawyers and tax preparers that you know to give you referrals. 

You need to be sure to specify the type of lawyer you are looking for, and whether you need representation for a business or individual. While getting referrals, seek to know whether the attorney you are hiring is specialized in dealing with bankruptcy cases.

Check the background of lawyers referred to you.

After you get referrals, it is always prudent to look into the finer details of the lawyers referred to you. Assess their background by checking reviews from their website feedback page. 

Check also if they have disciplinary cases from state or local bar associations. Establish whether the lawyers referred to you have the certification to deal with bankruptcy cases, such as whether they have a membership in a bankruptcy association.

Evaluate further

At this level, you need to narrow down to a few lawyers that seem most promising to you as prospects. Contact them and listen to them carefully since you are in the business of choosing the best suitable lawyer for you. 

After contacting them, you should be in a position now to narrow down the process further to two of them. Make appointments with the two remaining lawyers, and share your financial documents with them: a list of your debts and your house deed if necessary. Evaluate the experience of your attorney again at this level. 

Allow him to explain himself to you in a broad way and question him. Note how he or she is answering questions and treating you since their first behavior is very important. Discuss your case with him or her and let him guide you through the procedures to be followed in filing your bankruptcy. 

You also need to discuss the attorney fees. Some law firms, such as Benenati Law Firm, decided to differentiate themselves by charging lower attorney fees.

Finalize the choosing

Between the two, choose one after meeting them and hearing from both of them. Consider the one who is caring, giving you attention, and taking the time to explain the whole process. At this stage, do not feel pressured to make a choice and sign the fee agreement.

Do not choose a bankruptcy lawyer after only a few minutes of research. Instead, get someone who has the best qualifications, experience, and an outstanding reputation. You deserve only the best, take time, and choose wisely.

Bouncing Checks: 4 Ways to Make Bankruptcy Easier to Manage

Bankruptcy can have a profound effect on your finances both now and over the next several years. While it may help you get out of debt, it can also make it harder to get credit for the two to three years that follow. 

The bankruptcy will also stay on your credit report for up to 10 years. What steps can you take to best manage bankruptcy?

Know Your Rights

It is important that you learn as much as possible about your rights as it relates to filing for bankruptcy. During a bankruptcy case, creditors are generally unable to contact you or move forward with a repossession or a foreclosure. 

If you get any demand for payment from a creditor, contact your attorney, the case trustee or the bankruptcy court immediately. Doing so may prevent you from making payments or otherwise enduring harassment that you don't need to go through.

Know What Type of Bankruptcy to File For

Chapter 7 bankruptcy is ideal for those who have unsecured debts and few assets. Chapter 13 bankruptcy is best for those with secured debts or debts that can't be discharged. 

Professionals, like those at Demers Gagnier Inc., may be able to help you understand your options and which type of protection from creditors is right for you.

Know the Requirements before You File

When you file for bankruptcy, you will be required to provide information about your income, assets and liabilities. 

You will also be required to go through credit counseling within 180 days of filing. Taking the process seriously and providing any information asked of you in a timely manner may prevent your case from being dismissed or rejected.

Stick to the Repayment Plan

If you file for reorganization bankruptcy, you will be required to make payments on some or all debts for three to five years. Payments will be made according to a plan that is approved by the bankruptcy court. 

Making your plan payments as required may avoid challenges from creditors or other problems that could result in your case being dismissed. If you have trouble making payments, get in touch with the case trustee as soon as possible.

`Bankruptcy is ideally a last resort for dealing with debt after all other options have been exhausted. However, when done correctly, bankruptcy may help you get a handle on your finances both today and in the long run. 

If you are thinking about filing, make sure to do so with the help of an attorney or financial adviser to make it easier to manage the process.

Is there a difference between Chapter 7 and Chapter 13 Bankruptcy?

Declaring bankruptcy is an upsetting time for anyone. You never want to be placed in this position. In the US, there are two major types of bankruptcy you might file for if your personal debts have grown out of control: chapter 7 and chapter 13 bankruptcy. A lot of people confuse these two types, and when you are facing serious financial debt, it can be very difficult to know which route to take.

Here are the major differences between chapter 7 and chapter 13 bankruptcies, so you’re aware of your options if you face insurmountable debt.

Chapter 7 Bankruptcy Explained

Chapter 7 bankruptcy is where you admit to the court you have no chance of paying off your debts, and the court discharges your debts. You’ll be completely free from debt, but the catch is your belongings and property can be distributed to creditors to pay off your debts. There are items exempt from this, but in extreme situations where you owe large amounts of money, you could lose everything.

This is the end of the line for most people. The bankruptcy mark will remain on your record for a number of years, making it almost nearly impossible to take out credit.

Chapter 13 Bankruptcy Explained

Chapter 13 bankruptcy isn’t bankruptcy in the conventional sense. While you agree you can’t pay off your debts, you don’t necessarily discharge the debts. Instead, you broker a deal in the courts between you and your creditors where you’ll create a repayment plan. Usually, you’ll have your wages garnished every month until the debt is repaid. The difference is you aren’t putting your belongings at risk unless you specify that in the terms of repayment. In some cases, you might have some of your debt discharged.

Like chapter 7 bankruptcy, the mark of a chapter 13 bankruptcy remains on your credit score for several years, making it difficult to take out new lines of credit.

What Can They Take?

In chapter 13 bankruptcy they can’t take a thing. This isn’t where you admit you have to make a fresh start. It’s simply admitting you need legal intervention to help you pay off your debts. You can agree to sell something, like a car or furniture, to make the deal better for yourself, but it isn’t always necessary.

In the case of a chapter 7 bankruptcy, they can take anything of sufficient value. A bank could seize property, but in many states your primary residence is protected. Despite the equity, it’s likely the bankruptcy could still force a sale of your home so the creditors can recover their money.

You can lose your vehicle unless the court deems it essential to your livelihood. You can also keep trade tools for your work, but this only applies to a certain value. Anything above this value can be sold.

Your furniture and personal belongings are normally exempt from being sold off to collect a debt. Expensive jewelry and large items like plasma televisions and high-tech computers can be sold if they’re worth enough.

If you’re filing for either type of bankruptcy, it’s strongly recommended you employ a bankruptcy lawyer to help with the process. Through professional legal guidance, you can get you a more favorable deal and potentially help you retain many of your possessions.

About the Author:Ashley Parker has worked with many bankruptcy lawyers and financial advisors over the years. She regularly educates people on the differences between chapter 7 and 13 bankruptcies. As one of many chapter 7 attorneys, she recommends her clients try to opt for chapter 13, if at all possible.

Factors to Consider While Filing Bankruptcy

Bankruptcy is one word that we all fear about. Debt is stressful and overwhelming experience for anyone and a pure hell that have gone through. The most hazardous is when these debts start piling up and collection begins to call in; it is like living on the edge of financial hardships. Rather than keeping your debts and overhead expenses piling and finally that you come broke, it is better to file a bankruptcy before that.

In present economic situation, filing a bankruptcy is common thing, though for those who are filing are under pressure of numerous things, questioning whether they have head towards the right step or not.

Also, they have a fear whether they will be able to get back their life on track or not. There are certain factors to consider while filing bankruptcy and instead filing it yourself it is recommended that you hire an expertise help.

The reason of hiring an attorney for filing bankruptcy is every country/state has different norms to follow and has designed the bankruptcy law similar to that. It is difficult to know and follow these laws, also with time they are changed which makes grim to know the latest update thus, employing attorney sounds good.

Below mentioned are some of the factors to consider while filing bankruptcy such as:

First Thing First, Are You Ready For This: It is an important decision that people take time in taking into consideration. Determining to file for the bankruptcy doesn’t mean one doesn’t have weighed its pros and cons. Also, it is life altering matter, if not bankruptcy, through debt negotiation has also proved to be effective in resolving debt issues.

Your Assets Might Be At Risk: Debt crisis can lead to all types of consequences; some of them make it worse than others. When you default on a secured debt, such as car loan or mortgage those assets automatically turns into the risk of liquidation. Filing for the bankruptcy can help you regain the possession of your assets or can prevent a foreclosure. This is an actual benefit that people find appealing in bankruptcy process. When comparing the traditional debt negotiation, bankruptcy places an instant hold on any seizure, garnishment orders or lawsuits. This lets you have enough time to resolve your debts without worrying about your valuable possessions.

Debts Are Overwhelming: People most of the times misunderstood about the entire filing bankruptcy procedure, they think that those who file bankruptcy are overwhelmed by their debts. However, it is not always the same scenario with missed payments and tight financial condition it is an occasional concern and doesn’t necessarily suggest that you are a candidate for filing bankruptcy. If your debts majorly comprises of student loans, domestic expenses, taxes and such like then you are less likely to file bankruptcy since these kinds of debts rarely qualify.

Have You Reviewed Your Options? Filing for the bankruptcy could be a great tool during your financial hardships, not a first choice that you at the most consider. Though the entire procedure is time consuming, and involves attention from legal avenues. Also, know that not every time you are saved from the legalities there are always good as well as bad side and depending on the case the court approves the filing if not entirely but partial. It is better that you consult an attorney and let him/her do the job.

It is necessary that you talk openly with your attorney, as he/she would be the only person that would be fighting for you and aiding your financial crisis as much as possible. Lastly, know that filing bankruptcy is not about absolutely about how bad your past financial records were, but how efficiently you will be managing your financial undertakings after it.

When To File For Bankruptcy - Seven Tips

Bankruptcy is a last resort for many people. Debt is sometimes quite difficult to get out of, and no amount of saving or investment is going to help you in this regard. If you are considering filing for bankruptcy, however, it is important to consider a few things.

Bankruptcy is a legal status that you will take when you cannot pay debts to your creditors. A lot of the time, bankruptcy is usually going to be imposed on an individual via a court order. Some people may see that it is best for them to take bankruptcy on their own in order to avoid having to pay off the large debts that they have acquired.

Your Credit Rating

Your filing for bankruptcy is something that is going to remain on your credit rating for at least ten years. This is why it is important to consider everything when you decide to file for bankruptcy. You need to have a bankruptcy attorney in Gilbert to guide you down the right path.

If you are looking to buy a property within the next ten years, then this is going to end up being very difficult no matter how much money you have.

Creditors' Legal Rights

Bankruptcy does not mean that you can completely avoid your debts. It means that you can only make them wait for you to pay back your debts over time. Essentially, this is a way of buying you time.

Your Co-Signer

The co-signer to any loans that you have taken out is still going to be held responsible for anything that you cannot pay back. This is something that bankruptcy is not going to cover, so remember this.

Debt Collection

If you can go for bankruptcy, then you will be able to stop debt collection harassment. This is often one of the many reasons why many people will seriously consider taking this particular path.

Types

There are different types of bankruptcy that you can choose. If you want to find out more about them, then you are going to have to speak with your lawyer. He or she will be able to run you through the details so that you can make an informed choice when it comes to your financial decisions.

Discrimination

According to the law, you cannot be discriminated against by employers or other institutions just because you are bankrupt. This means that you will have legal protection and be able to get other work.

Cost

There are going to be costs involved when it comes to declaring yourself bankrupt. Each case is going to have a different cost attached to it, though most of the time these are going to be the same. The fees usually fall between $150 and $200.

Make sure to keep all of these points in mind before you decide to take that step. This will ensure that you can make a proper, informed decision.

Author Bio: Ashley is a professional writer. She is interested in writing finance, Money saving related articles.This is one such article which explains on how You can Avoid bankruptcy with Debt Management Counseling & Learn to control your finances by Credit card debt management programs.