5 Reasons Why You Should Hire a Bankruptcy Attorney for Your Case
Bankruptcy is a complex legal process. It can seem like an uphill battle if you don’t know what you’re doing. If you are struggling with debt, consider hiring a bankruptcy attorney for your case.
A legal representative will ease the stress of filing and give you peace of mind throughout the process. Here are 5 reasons why hiring a bankruptcy attorney is beneficial for your case:
Your chances of keeping your property will be better.
When you file for bankruptcy, you’ll be given a “discharge.” Discharge means that the court will erase your debts by court order. Before you can receive the discharge, however, you must go through the process.
The bankruptcy trustee assigned to your case will go through your assets to see which ones will be protected in the event of a default.
If you hired a bankruptcy attorney, you’ll have a better chance of keeping your property. You’ll have the opportunity to make a claim on your property before the trustee does. A declaration of exemption will let you know which items you can keep.
Keep in mind that you can only make a claim for property that is not connected to debt. For example, if you have a car loan, you won’t be able to make a claim for that. You’ll also have a better chance of keeping other assets like:
- retirement accounts.
- life insurance policies.
Your fees will be paid for by the bankruptcy trustee.
If you hire an attorney to represent you in your bankruptcy case, the fees will be paid for by the bankruptcy trustee. The government is funding your bankruptcy case. When you file, they take over the payment of your attorney’s fees. They will also pay for any court fees incurred during the proceedings.
There are a couple of exceptions, however. The first is if you file for Chapter 7 bankruptcy. In that case, you will have to pay for your bankruptcy attorney’s fees out of your own pocket. The second exception is if you have been determined to have “substantial” versus “modest” assets.
In this case, the trustee may request that you pay a portion of your attorney’s fees out of your own pocket.
Your fees will be paid for by the bankruptcy trustee.
If you hire an attorney to represent you in your bankruptcy case, the fees will be paid for by the bankruptcy trustee. The government is funding your bankruptcy case. When you file, they take over the payment of your attorney’s fees. They will also pay for any court fees incurred during the proceedings.
There are a couple of exceptions, however. The first is if you file for Chapter 7 bankruptcy. In that case, you will have to pay for your bankruptcy attorney’s fees out of your own pocket. The second exception is if you have been determined to have “substantial” versus “modest” assets.
In this case, the trustee may request that you pay a portion of your attorney’s fees out of your own pocket.
You’ll understand the legal process better.
If you hire an attorney, you’ll understand the legal process better. This means that you’ll understand how the court decides whether or not to grant you a discharge. You’ll also understand how to go about retaining exempt property.
You’ll understand how credits work in the bankruptcy process. Specifically, you’ll know that credit is money that you’ve paid off in the preceding six months.
A credit might reduce your bankruptcy fees. You’ll know what happens if you receive a tax refund after you file for bankruptcy. You’ll also understand the difference between Chapter 7 and Chapter 13 bankruptcy. It’s designed for people who can keep their jobs and make their monthly payments on time.
It’s not as scary as it seems.
If you hire a bankruptcy attorney, the attorney will guide you through the process. You’ll be less frightened and more prepared when you know what to expect. The attorney will walk you through and explain the legalese that you’ll come across in your paperwork.
You’ll be less likely to skip important steps that your legal representative will make sure to point out. For example, there are certain documents that you will have to file within a specific number of days.
Your attorney will make sure that you file the correct documents, at the right time. You’ll also know how to proceed if you receive a notice from your attorney.
The notice might tell you that you have a deficiency. Or it might say that you have received a “notice of intent to levy.” You’ll understand the notice and know what to do if you receive one.
You’ll receive guidance and counseling.
If you hire a bankruptcy attorney, you’ll receive guidance and counseling. Your attorney will walk you through every step of the process, making sure you’re doing everything correctly. Your attorney will help you determine whether you should file Chapter 7 or Chapter 13 bankruptcy.
The attorney will also help you determine which assets and debts to claim as exemptions. Your legal representative will walk you through the paperwork and any documents that you need to sign.
Your attorney will also help you deal with any emotions that you might have. Bankruptcy is an emotionally charged process. You might feel embarrassed or ashamed of your situation. Or you might feel angry about the circumstances that put you in debt.
Your attorney will listen to you and help you work through those emotions.
Conclusion
Bankruptcy is a complex legal process. It can seem like an uphill battle if you don’t know what you’re doing. If you are struggling with debt, consider hiring a bankruptcy attorney for your case. A legal representative will ease the stress of filing and give you peace of mind throughout the process.
Hiring a bankruptcy attorney is beneficial for your case because you’ll have a better chance of keeping your property, your fees will be paid for by the bankruptcy trustee, you’ll understand the legal process better, it’s not as scary as it seems, and you’ll receive guidance and counseling.
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