Do You Need a Bankruptcy Attorney? Find Out Here
A bankruptcy attorney near me can help protect assets from debt collectors and find a way to help free you from your financial responsibilities. Bankruptcy can be complicated so while you may not need a lawyer if you are considering filing for bankruptcy then you should speak with one.
Getting debt advice from a bankruptcy attorney can save you a lot in the long run and protect some of your assets. Bankruptcy is not a get out of debt plan that people immediately turn to since there can be less drastic options, but it can be necessary in certain cases.
Should I Hire a Bankruptcy Attorney Near Me?
As an individual, you don’t need an attorney to file for bankruptcy. However, it may be beneficial to you. Filing on your own will only make sense depending on a few things. It will depend on if you are filing for Chapter 7 or Chapter 13 bankruptcy, the amount of property and income, the complexity of your case, and whether or not you are comfortable with researching and handling your own case.
If all you are doing is a simple Chapter 7 bankruptcy then you will have a better chance of completing your case without the help of a bankruptcy attorney. A simple Chapter 7 case would include little or no property, your income will be below the state’s median income level, there have been no recent payments to preferred creditors or recent property transfers, and your creditors also won’t be like to dispute a debt.
Even if it seems like it’s a simple Chapter 7 case, keep in mind that it still requires a fair amount of research and time. In order to not put any property at risk, you have to accurately fill out the forms, research exemptions, learn how the laws work, and follow all the procedures and rules that are necessary to complete the process.
If you do decide to file on your own, you want to make sure you get as much help as possible. Getting a good self-help book can be a good idea. You may be able to work with an attorney without full representation. You can meet with a lawyer for a consultation in order to determine if bankruptcy is actually the right choice for you and to see which chapter of bankruptcy is going to be right. You may also learn about which problems you can come across and learn that it’s not the best idea to go through it on your own, even when you previously thought it was possible.
When Does It Make Sense to Hire a Bankruptcy Attorney Near Me?
While it’s possible to file on your own, it’s usually going to be in your best interest to hire a bankruptcy attorney. An attorney is going to be necessary any time a business files for bankruptcy.
Chapter 13 Bankruptcy
It is more complicated than Chapter 7 so if you are thinking of filing Chapter 13, you should consider a lawyer. Chapter 13 is going to be a financial tool that can allow you to catch up on missed car loan payments or missed payments, get rid of unsecured junior-liens, and reduce the interest rate or principal balance on car loans. In order for the court to approve Chapter 13 bankruptcy, you will need to have a feasible repayment plan. This can be hard to do without the legal knowledge that bankruptcy lawyers have.
Chapter 7 Bankruptcy
A simple Chapter 7 bankruptcy can be handled on your own, but for a more complicated case, it’s best to consult with a lawyer. You need to check with a lawyer if you have a lot of income that could maybe disqualify you from Chapter 7, have a lot of assets that could be at risk, own a business, have debts you may not be able to discharge in bankruptcy or have creditors that could challenge your discharge. If you don’t feel comfortable with the processes and the amount of research that is involved then of course it makes sense to work with a lawyer.
Signs You May Need a Bankruptcy Lawyer
Financial trouble and debt will not usually happen unexpectedly or overnight. It tends to be a gradual process and there will be warning signs that there could be issues. When you ignore the warnings and your finances deteriorate then it may be too late to do anything except declare bankruptcy and hire a lawyer. If you pay attention to warning signs, you may be able to fix your financial situation before you need to get a lawyer involved.
Financial trouble and debt will not usually happen unexpectedly or overnight. It tends to be a gradual process and there will be warning signs that there could be issues. When you ignore the warnings and your finances deteriorate then it may be too late to do anything except declare bankruptcy and hire a lawyer. If you pay attention to warning signs, you may be able to fix your financial situation before you need to get a lawyer involved.
Financial trouble and debt will not usually happen unexpectedly or overnight. It tends to be a gradual process and there will be warning signs that there could be issues. When you ignore the warnings and your finances deteriorate then it may be too late to do anything except declare bankruptcy and hire a lawyer. If you pay attention to warning signs, you may be able to fix your financial situation before you need to get a lawyer involved.
Some signs you are headed for bankruptcy and financial trouble include only making minimum payments on credit cards, maxed out credit cards, using credit cards for everyday expenses such as utilities, paying overdraft fees, having collection agencies calling you at all hours, creditors suing you, or not qualifying for any debt relief programs. While it’s usually a gradual process, you can also have an immediate event, such as divorce or job loss, that can suddenly turn finances upside down, especially if you don’t have an emergency fund.
Bankruptcy Should Be Your Last Option
Bankruptcy will usually be a last-ditch effort for any financial problems, and there is a reason for this. Bankruptcy damages your credit for about seven to 10 years, it can be an obstacle toward getting a security clearance, and it can even cause you to miss out on job and work opportunities. If you know that you aren’t able to solve your financial problems in less than five years then bankruptcy may be your only viable option that makes sense.
How to Find a Good Bankruptcy Attorney Near Me
When you are hiring a bankruptcy attorney, you want someone that is experienced in bankruptcy. Bankruptcy requires understanding how many different principles interrelate and making a mistake can be quite costly. Many attorneys are not going to accept bankruptcy cases unless they do practice this law regularly.
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If you know someone who had a good experience with bankruptcy then that lawyer is going to be your best option. Call that lawyer first. If you have a family member or friend that is a lawyer practicing another type of law, he or she may also know a bankruptcy lawyer
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If you happen to be a member of a plan that gives low cost or free legal assistance then it’s easy to make this your first stop when looking for an attorney.
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Many county bar associations will show you the names of bankruptcy lawyers that practice in your area. Since they don’t screen the lawyers, you still should check out their experience and credentials before deciding to hire him or her.
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There are plenty of lists of bankruptcy lawyers online. This can be a good place to start but you will still want to do your research.
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Law schools can sponsor legal clinics and give free legal advice. There may be income requirements, just as there are with Legal Aid, but some do give free services to low- or even moderate-income families.
What Should I Expect When Working with a Bankruptcy Attorney Near Me?
Bankruptcy, like many other legal matters, is the safest when you have someone to guide you through the process. A good attorney can give you peace of mind and help you through the process so you succeed. You will have an initial consultation that will usually be free in order to get an overview of the case. From the consultation, you will be given advice on different options available, including which bankruptcy is best for your situation. You will complete the paperwork that is necessary for filing bankruptcy and then have representation when you go to court.
- 1. Initial Consultation
During your consultation, both you and your spouse should attend so that your questions can be answered accurately and honestly. The process will be about an hour long. During this time, making guesses about how much you owe isn’t a good idea. You shouldn’t be holding anything back if you want a true assessment of your case. After the lawyer has gotten enough evidence to evaluate your case then you will get advice on how to proceed. Keep in mind that a good lawyer may not recommend filing for bankruptcy in every case. It’s possible that your debt could be resolved through other less dramatic means, such as a debt management program or debt settlement. - 2. Filing the Paperwork
If it does in fact make sense to file bankruptcy then the lawyer will help you file the paperwork. The attorney is going to help you make sure he or she can protect as many of your assets as possible so be sure to speak up about what is most important to you. - 3. Meet With the Judge
This is what happens after you file the paperwork The lawyer should have enough experience to show the judge convincing evidence that you have made mistakes but have learned your lesson and will be better off financially with a second chance. This usually won’t be a problem in Chapter 7 bankruptcy but it can be a bit harder for Chapter 13 bankruptcy. With this type of bankruptcy, the lawyer needs to lay out a realistic payment plan that you are able to complete in five years or less.
What if You Can’t Afford a Bankruptcy Attorney?
Having a lawyer on your side can be much better than filing yourself, but you may not be able to afford counsel, especially if you are already in massive debt. Instead, you should consider getting help from a legal aid society or local free clinic. You may search for a pro bono attorney to agree to your case at a lower rate or for free, or pay the attorney fees through the Chapter 13 bankruptcy repayment plan.
Problems That Can Happen by Not Using a Bankruptcy Attorney
If you aren’t using a bankruptcy lawyer, you could be subject to different pitfalls before, during, and after the case.
Not Needing to File
You may be filing bankruptcy on your own without even needing to. A lawyer will let you know if bankruptcy is the only option for you and if it makes sense to file.
Filing the Wrong Type
Chapter 7 and Chapter 13 bankruptcy each have their own advantages and disadvantages. If you file for the wrong bankruptcy type, you may end up losing property or not discharging certain debts that you were hoping for.
Not Filing the Required Documents
There are a lot of forms when filing for bankruptcy. You will have to complete federal forms and, in some cases, local forms. Those who usually self-represent don’t file all the forms, which can mean the dismissal of the case.
Failing to Protect Property
You don’t lose everything in bankruptcy but if you make mistakes when filing, you can risk losing everything.
Not Taking Required Education Courses
In both Chapter 7 and Chapter 13, filers need to have credit counseling before filing and financial management education before actually getting a discharge. Many self-filers get confused about these requirements and don’t get the proper certifications, which can mean dismissal of your case.
Adversary Actions
While many Chapter 7 cases will move along without any issues, it’s not always the case. There can be complicated issues that happen that many filers aren’t actually prepared to handle. For example, many self-filers don’t understand the importance of adversary actions, can’t defend against actions seeking to discharge, or sometimes file handwritten responses or motions. Not understanding these concepts can be a problem if creditors end up challenging the dischargeability of debt or if the bankruptcy trustee who oversees the case says you have committed fraud. When you get a motion or complaint then it’s important to work with an attorney.
How Much Does a Bankruptcy Lawyer Charge?
If you are filing for bankruptcy, money is already tight so you may be worried about the funds that it takes to hire a lawyer. Whether or not you work with a lawyer, you are still going to have filing fees. Filing fees will depend on what type of bankruptcy you are going to file. Besides the filing fees, you are also going to have to take a personal financial management course or have credit counseling. Fees for this can range from $20 to $100, depending on where you live and file.
When You File Chapter 7:
Bankruptcy lawyer fees are going to be dependent on what type of bankruptcy you are filing. When you file Chapter 7, you will usually have to pay upfront. Across the country, the average fee for Chapter 7 is $1,250. Keep in mind the case can vary by the market. You will usually pay more if you are in a large area than a small town. Not only will your location factor into the cost, but the complexity of your case and experience of your attorney can also affect fees. If you have a simple case, it’s expected that you will pay less than you would with a more complicated case that can result in litigation. A well-established lawyer with more experience may also charge more.
When You File Chapter 13:
When you file Chapter 13 bankruptcy, the cost is going to be different. Lawyers will usually set reasonable attorney fees for Chapter 13 cases. If your lawyer charges this presumptively reasonable fee then the court won’t look into the charge, unless you request it. These presumptively reasonable fees are going to be varied based on how complex your case is. The average for the country is $3,000 but each bankruptcy district has its own rules and standards. Many attorneys will charge the fee upfront. Some will only charge a filing fee and some want a bigger down payment. You end up paying the rest of the fees for your lawyer through the debt repayment plan. You make regular payments to a bankruptcy trustee and then the trustee pays the right portion to the lawyer.
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Finally,
When looking for a bankruptcy attorney near me, keep in mind that you will get what you pay for in a bankruptcy case. Filing for bankruptcy is complicated and the requirements can be hard to meet. The right bankruptcy lawyer will know the system, rules, and the courts, and be able to communicate effectively. It may not be the best option to use the cheapest bankruptcy lawyer you can find. A lawyer that is cheap and offers reduced fees will usually hand your case to a paralegal with little or no supervision. This means there is poor attention to detail and inexperience.
Filing for bankruptcy can be complicated and while it’s possible to do it on your own, having an experienced bankruptcy attorney can really be beneficial. There are a number of ways to find a bankruptcy attorney and even if you can’t afford one due to your debt situation, there still may be ways to get representation. Not having a lawyer can lead to a number of mistakes that can end up with the dismissal of your case or cause you to lose valuable property.