Aug 10
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Use A Bankruptcy Lawyer When Filing Bankruptcy
If you are in extreme financial hardship, no doubt you have probably considered filing for bankruptcy protection. Bankruptcy if done right can eliminate a significant (if not all) amount of the debt you have. But the process of filing for bankruptcy should not be taken lightly, therefore you should consider seeking the help of a qualified bankruptcy lawyer. It is within your legal rights to seek for bankruptcy protection, but you should get the advice of a bankruptcy lawyer to get a successful bankruptcy filing.
A lawyer can help you understand what bankruptcy means to you
There are many legal ramifications when you are filing for bankruptcy protection. Without the assistance of a bankruptcy lawyer, there is a higher probability that you will miss these important facts. For example, do you know if you should be filing chapter 7 or chapter 13 bankruptcy? In a nutshell, chapter 7 bankruptcy is usually for those people who have no ability to pay back their creditors. Another important fact about chapter 7 bankruptcy is that you might have to give up some of your non-exempt assets to the bankruptcy trustee. The bankruptcy trustee will in turn sell these assets to pay back your creditors. On the other hand, chapter 13 bankruptcy provides you with a way to pay back the creditors in 3-5 years. Also with chapter 13 bankruptcy, you will be allowed to keep your home and not be subjected to foreclosure. As you can see, just a basic question of what type of bankruptcy you should be filing is already this complicated.
Bankruptcy lawyer can help you understand what to expect
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Prior to filing bankruptcy, your bankruptcy lawyer will be able to inform you what to expect from the start to the end of the filing process. It is possible for you to get some of these “gotcha” from the Internet, but it is makes better sense to have an individual (your bankruptcy lawyer) whom you can count on to be there to take care of your every need.
Bankruptcy lawyer can explain what the creditors might do
Many people are only worried about what will happen to their own financial situation when they are filing for bankruptcy. But there are some other outside forces that can change the outcome of the bankruptcy process. For example, the creditors have the ability to change the landscape of the bankruptcy process. When you file for bankruptcy protection, you are automatically granted the automatic stay which prohibits the creditors from taking any legal actions or collection efforts against you. Creditors have the option to file a motion with the bankruptcy court to lift or revoke the automatic stay. Unless you are familiar with all these legal maneuvers, using a bankruptcy lawyer is the best resource to guide you through this bankruptcy process.
As this article has proved several times, filing bankruptcy is not a trivial matter. It should be handled by a professional bankruptcy lawyer so that all the entire process can transpire without any surprises. You want the whole process of bankruptcy to go smoothly without a hitch. If you try to file bankruptcy without a lawyer, you are bound to hit an obstacle which can cause your case to be dismissed or delayed. Even though a bankruptcy lawyer can cost you $1,000 – $2,500 for his or her professional service, it is still worth it to have a professional taking care of such an important even in your life. Do not try to save this expense because it can only come back and hurt your chances for a successful bankruptcy.