Reasons to Hire a Bankruptcy Attorney
In today’s economically challenged times, financial duress is unfortunately a reality for what seems like an unprecedented number of our citizens and businesses. If you or your company is facing such difficulties personally, contacting a qualified bankruptcy attorney presents several advantages to help you survive a monetary crisis.
1. A Bankruptcy Attorney Helps You Identify the Need to File
There are instances where a bankruptcy filing becomes the best way to count losses and prevent further adverse action, legally and otherwise. However, this is by no means a process that should be entered into blindly.
During an initial consultation and an evaluation of your particular situation, a law professional will help you determine if your circumstances would qualify as advantageous for a bankruptcy filing. There are also certain eligibility requirements for bankruptcy protections. Examples of problems a bankruptcy lawyer can assist you with include: debt settlement, foreclosure, business debt settlement, and loan modifications.
2. A Local Bankruptcy Attorney Helps Distinguish Filing Options
If it is determined that you are eligible to file for bankruptcy and that it is indeed your best option, the legal professional can proceed to advise you on which type of bankruptcy may have the most favorable results for you specifically, both in the short term and the long term. You may be advised to file for Chapter 7, Chapter 11, or Chapter 13.
Chapter 7 bankruptcy allows most unsecured debts to be “discharged” (cancelled). This form is known as liquidation since the trustee of the bankruptcy is permitted to sell any non-exempt assets belonging to the debtor to help satisfy the debt.
Chapter 11 bankruptcy is a way for a business to stay afloat while working to pay down an outstanding debt and rehabilitate financially. In this type, a restructure of the company’s debts is permitted which allows operation of the business to continue.
Chapter 13 bankruptcy is a where the bankruptcy court allows the debtor to satisfy the debt by managing a partial or full repayment plan. The payments are collected from the debtor by the bankruptcy trustee each month.
3. Filing for Bankruptcy is Easier with Professional Legal Assistance
It is much easier and more effective to seek bankruptcy protection through an experienced bankruptcy law professional. The sheer paperwork involved in a filing may be enough to make lawyer help worthwhile. Certain factors will be considered when the attorney is checking your qualifications.
For Chapter 7 bankruptcy protection, your income will be compared against your state’s average income. In Chapter 11 bankruptcy protection, any entity (other than a unit of government) that is a corporation, partnership or limited liability can qualify. Chapter 13 can be the right option for debtors with dependable, stable income and a substantial set of assets they do not want to put in jeopardy.
4. Your Attorney Interacts with Financial Institutions on Your Behalf
Regardless of the reason for your personal economic downfall, a local bankruptcy attorney can initiate a series of “damage control” steps that will minimize the losses resulting from your predicament. To do so, they may communicate with a variety of financial institutions for you. That includes speaking (verbally and in writing) in a fully knowledgeable and authoritative on your behalf with entities and individuals such as banks, mortgage companies, court officials, debt collection agencies, and any other party who has a vested interest in your debts.
In many cases, a qualified attorney can better articulate your desires and abilities (or inabilities) to pay as an overwhelmed debtor. They may also be able to negotiate in a more effective manner, on items like interest rates, consolidation, and other parameters that can affect your capability of financially recovering during and post-bankruptcy.
Should I File for Personal Bankruptcy?
There are currently countless individuals and families struggling to make their mortgage payments, car payments, credit card payments, other bills and loans. Once the ability to keep up becomes impossible, you may begin to wonder if you would qualify for personal bankruptcy and begin the search for an experienced bankruptcy attorney. X residents should consult a legal professional if they meet one or more of the following criteria.
1. Your Total Monthly Bills Exceed Your Income
If your monthly bills, particularly those relating to debt, have become unbearable, it may be time to contact a local X bankruptcy attorney to help discover whether you meet the exact qualifications for a specific type of bankruptcy protection.
2. You Have Exhausted Other Financing Options
If you have already tried solutions such as debt consolidation, re-finance, negotiation of minimum payments, and other steps, your next best step should be to get in touch with a firm of X bankruptcy attorneys to discuss your options.
3. You Have Suffered From Job Loss Resulting in Financial Duress
If you have suffered from job loss and your continuous attempts to find work have been unsuccessful, it may be time to consider filing for bankruptcy. There are other alternatives, which X bankruptcy attorneys can outline for you prior to selecting the option of filing for Chapter 7 or Chapter 13.
4. You Are Being Pursued by Debt Collection or for Legal Action
In the event you have been unable to properly keep up with your monthly payments on loans, mortgages, and credit card bills, debt collectors will begin to attempt to collect the debt on behalf of the company to which you owe it. Furthermore, many financial institutions will allow a law firm to sue you for the money you own. These events can be very intimidating, and you may not be comfortable trying to negotiate with these third parties. A qualified firm of X bankruptcy attorneys can help.
5. Your Outstanding Debt is Causing Stress, Anxiety or Depression
Debt that cannot be easily paid off can be a source of genuine grief and a complete decrease in your overall sense of well-being. You may have had every intention of paying off your debts but unforeseen circumstances prevented you from doing so. If this is the case for you, it is advisable to immediately get in touch with a bankruptcy attorney. X law firms that specialize in situations like yours are a valued resource to the community and can help relieve your financial worry.
6. Your Mortgage Company has Threatened Foreclosure
One of the hardest things about financial strain is the threat of foreclosure. It is a little known fact that allowing X bankruptcy attorneys to help you file Chapter 13 may bring to a halt foreclosure proceedings, at least temporarily. A local legal professional who specializes in scenarios like yours will be able to assist you in differentiating Chapter 13 from Chapter 7.
7. You are Concerned about Loss of Assets
Should you be incapable of satisfying your debts, you could begin to lose major assets in an attempt on the part of lenders to recoup what you owe in any way they can. This can include precious commodities like your home, your car, and other valuables. To prevent and minimize such asset seizure, do not hesitate to contact a bankruptcy attorney. X law firms can help you protect your assets by filing bankruptcy in a certain way.
8. You Wish to Reorganize Your Debts and Rehabilitate Financially
Chapter 13 bankruptcy can be filed to help you reorganize debts and make them more manageable, while helping to relieve some of the pressure of being behind on loans and mortgages. This particular type is less common than Chapter 7, and is best-suited for debtors who have a regular income source to pay off re-structured debts. A local X bankruptcy attorney will help you determine which type of filing is best for your situation.