The thought of being declared bankrupt is stressful. Bankruptcy is a challenging process and normally involves tons of documentation, which you must accurately file and present before the authorities.
It is vital to note that you will not be declared bankrupt by default when debts reach unmanageable proportions. There is a legal procedure involved that starts with applying for bankruptcy.
Some individuals think they can easily file for bankruptcy on their own even when they lack enough legal experience. Though it makes sense to seek help from an attorney specializing in bankruptcy law to make sure the filing process is done as per rules. Other reasons for hiring a bankruptcy lawyer include:
- Deal with Creditors
If you consider bankruptcy, it means you have several creditors reaching out in an attempt to collect debts. This is a stressful process and may make you dread reading your emails or answering phone calls.
Luckily, when hiring an attorney, the harassment from creditors will end since your lawyer will reach out to them to explain what’s happening.
- Handle Complex Law
Understanding the kind of bankruptcy case to file is vital. Most individuals trying to handle it alone end up filing the wrong chapter.
An attorney familiar with all the processes of bankruptcy can be a solution to know what chapter fits your needs. The lawyer can also inform you of tax consequences and strength reductions, which you may face.
- Successful Filing
According to the US Bankruptcy Court, individuals who file bankruptcy cases are held to similar standards as people seeking legal help. Bankruptcy petitions can be denied or dismissed according to different innocent mistakes, such as failure to appear at the creditor’s meeting and improper filing.
In addition, the clerk’s office is not allowed to give customers guidance regarding the filing process. A bankruptcy attorney may handle all the technical facets of the petition and ensure that mistakes are not committed. The lawyer may also provide details to prevent clients from making more harmful mistakes during the debt relief and bankruptcy process.
- Address Legal and Residual Financial Issues
In some situations, creditors might disregard debt discharge and continue reporting late payments on your credit or collecting discharged debts. Bankruptcy attorneys know how to petition the court to put a stop to this kind of situation.
Plus, bankruptcy doesn’t always clear up your financial problems. For instance, bankruptcy may not discharge your mortgage balance, and some individuals will still face foreclosure after and during bankruptcy cases.
In this case, a bankruptcy attorney may negotiate for mortgage modification and seek other solutions, which will allow you to still keep your house.
Lawyers are good at ensuring that your bankruptcy case goes through the entire process smoothly, allowing you to enjoy the benefit of having a fresh start. Although it is rare, at times, things happen afterwards, requiring your attention.
If that happens, your bankruptcy lawyer may help you resolve all the violations if creditors try to collect debts, which bankruptcy wiped out. Your attorney may also give you advice on rebuilding credit and tips for taking advantage of different offers you will get after your case comes to an end.