What Are The Key Benefits Of Filing Bankruptcy Under The Guidance Of A Bankruptcy Attorney?

If you have been facing bankruptcy, needless to say that your funds are currently tight. Thus, you might be wondering if consulting and hiring a bankruptcy attorney would be a right decision for now. Well, the shortest answer is, ‘yes,’ however it depends on the assets you are trying and if you will be filing Chapter 7 or Chapter 13 bankruptcy.

What does a bankruptcy attorney do?

A bankruptcy lawyer could help you assess your financial circumstances, including the amounts and types of the debts that have been overwhelming you, and advise you on whether it’s right to trail bankruptcy at all. If bankruptcy proves to be your only last resort, your attorney will help you determine if you must file it under Chapter 7 or Chapter 13 of the federal bankruptcy.

Once you have decided which bankruptcy procedure to trail, your lawyer will help you be through the phases involved, including:

Submitting the list of lenders to the court and scheduling court appearances

Navigating you on where how you must complete a required pre-bankruptcy credit counseling session along with a post-bankruptcy debt management course.

Submitting essential fees while filing documents with the court

It is possible for you to do certain or all the things yourself, however these steps are likely to go more effortlessly if they are done on behalf of you by a lawyer acquainted with deadlines, procedures and a variety of other formalities of the bankruptcy court.

How much does a bankruptcy attorney charge?

The expense for a bankruptcy lawyer usually depends on what type of bankruptcy you’re planning to file.

Chapter 7 bankruptcy

If you have filed Chapter 7 bankruptcy that could be wrapped up in a few months in the simplest cases, your lawyer is likely to charge a single flat fee for conducting and controlling your case. Fees for lawyers differ from one professional to another, even though the federal bankruptcy procedures are the similar everywhere across the US.

You will have to pay your lawyer’s fee in the entirety before they file your case. This is because all lenders are legally stopped from trying to collect the debt from you once your Chapter 7 bankruptcy is filed. You will as well be liable for paying the filing fee to the court, however you can request to have the fee waived off in case you don’t have sufficient money to pay it.

Chapter 13

The process of filing Chapter 13 bankruptcy is actually more complex and much lengthier than Chapter 7 bankruptcy, and the legal fees are as well substantially higher as a result. Chapter 13 usually incorporates a making of payment plan that could take up to 5 years for the completion.

However, the good news as to Chapter 13 legal fees is that they often are tucked into monthly payment plan created to help pay off the lenders, so you never have to show up with the money all at once, the way you have to do under Chapter 7 bankruptcy. You will need to pay the court an up-front fee while you file chapter 13 with the court.

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Created on Jul 12th 2022 03:13. Viewed 262 times.

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