Bankruptcy Attorney - Knowing Your Options

Filing for bankruptcy is an emotional and complicated decision to make. But once a person has decided to move forward with the process, the next major question to ask is whether to file for Chapter 7 or Chapter 13. There are pros and cons to both. People or organizations who qualify for one may not qualify for the other.

Ultimately, it's best to work with legal counsel to determine the right option for an individual's circumstances. When researching and interviewing a bankruptcy attorney, it's wise to be educated and be prepared with a list of questions. Here is an overview of the two insolvency options to help you be a more informed consumer.

Chapter 7
This is the quickest and simplest option available to individuals, married couples, corporations and partnerships. A bankruptcy attorney can help you figure out if you can or can't qualify to file based on the IRS guidelines for your income and expenses. In the most basic overview of the qualification process, if one's income is less than then state's mean, then they are likely qualified for it. If it is more, then they will usually need to file for Chapter 13.

The primary advantage of this is the elimination of most or all one's unsecured debt, meaning debt that is not attached to any property. This means that nothing will be owed for debt including credit cards, medical expenses and utility bills.

The other notable benefit is that it is usually a much faster process to a fresh financial start. Usually the case will take only three to four months for a bankruptcy attorney to complete from the time it is filed. The disadvantage here is that your assets are subject to seizure and sale by the government.

Chapter 13
Under this bankruptcy, an individual or sole proprietor must be working or have a consistent income. With this option, a debtor is set up on a debt repayment plan, usually lasting three to five years. This means that they can get caught up on the property over time and prevents them from having to come up with all the money immediately.

For those who qualify, this option is usually best for people who have mortgages they want to keep or they have things like taxes and child support that cannot be eliminated by the one discussed earlier. The attorney will usually tell you that the other main benefit of this is the 100% protection of your valuable assets from seizure by your creditors.

Bankruptcy Lawyer - Tips to Finding a Good One

It's never a pleasant scenario that brings you to need the services of a bankruptcy lawyer. It could be that your home is being foreclosed on, or that you lost your job six months ago and finding a new one has been more difficult than you anticipated. Perhaps credit card debt has you in over your head. Whatever the case, finding a good attorney is going to be your primary immediate goal. Because of the economy, more people than ever have been trying to get out from under their debt burden by using the court system. This has brought the wolves out to play. To avoid these wolves and find a firm that has you best interests at heart, here are some tips you should follow.

Don't Waste Time
Finding yourself in financial trouble can be overwhelming. The first tendency many have is to bury their head in the sand and try to wish it away. Ignore those collection calls and toss out those threatening letters that come in the mail. This, of course, makes things worse. Don't make the same mistake when it comes to finding a bankruptcy lawyer. If you wait until the last minute, you'll be more likely to fall in the trap of accepting the first one that advertises in a way that gets your attention.

Go To Court
One of the best ways to observe a bankruptcy lawyer in action is to spend a day in court, watching them argue someone else's case. As a layman, you won't be able to decipher everything there is to know and you may not have any experience telling a good attorney from a bad one. All the same, you can get a feel for their personalities and see how they interact with the judge. You may also be able to spend a moment or two talking to their clients and you can ask them if they recommend their attorney for representation.

Make Personal Visits
Don't be afraid to take advantage of more than one free consultation. When you visit a law firm, you're looking for a few things. Of course, you'll want to see what the bankruptcy lawyer has to say about your case and you'll want to see how you get along with them and the staff. But you'll also want to pay attention to your surroundings. Does this look like an organized, efficiently run office? Impressions such as these can tell you a lot about the way a firm does business.

Bankruptcy Lawyer - To File on Your Own Or Not To

Because those facing bankruptcy are already in financial dishevelment, and there is no law dictating that you must use a bankruptcy lawyer when filing, it may seem sensible to file the procedures yourself. You, however, are advised to consider that, most likely, you would most likely not decided to fix your own roof, diagnose your own illness, or deliver your own child even though there are no laws stating that you cannot. Likewise, it is advised that you seek the advice and guidance of a professional. Handling the case yourself and seeking the knowledge of experience can mean the difference in escaping the trial with enough financial reserves to start anew and having an experience that is stressful and unsuccessful.

Another option for filing bankruptcy is to seek the services of a petition preparer. These are professionals who take your information and transfer it to the correct legal documents. The misconception amid bankruptcy filers is that these preparers have legal training. This is not the case. In fact, these professionals are little more than typists who legally only have to right to enter your information as you present it to them. They cannot give any legal advice or represent you in court, and the only option should legal questions arrive is to be referred to a practicing bankruptcy lawyer. Most filers will now find themselves paying for two separate services. Petition filers, without the advisement of an experienced lawyer, often give general information that results in the client making erroneous decisions, and it should be noted that any legal advice given by petition preparing services is considered practicing law without a license, and such a practice is illegal.

A skilled and trained lawyer is the best option for filing. A bankruptcy lawyer will guide you through the entire process beginning with reviewing your case and suggesting the pros and cons of your options. This area of law is a dynamic field in which the laws are constantly being reviewed and changed, and the upfront cost of an attorney will ultimately save you money as the assets and money lost by inadequate or even illegal advice of petition filers could be exponential.

Filing yourself or using petition services may be a better option if you have no assets or other interests that you stand to lose, but even in this case, it will behoove a filer to partake of the sound experience of a qualified professional.