The Numerous Benefits of Hiring A Bankruptcy Lawyer

Filing for bankruptcy is undoubtedly one of the toughest things a person can go through. It is an emotionally draining process, and it is hard to avoid the sense of utter humiliation and defeat that comes with it. Besides the psychological impact, the whole ordeal is rather disquieting given the legal and financial fallouts, the level of paperwork involved, and so on. If you are staring down a tunnel of impending bankruptcy, it might help to hire a lawyer right away. 

There are numerous benefits of seeking legal counsel straight from the get-go. If you are currently in a similar position, it pays to know the benefits of hiring a bankruptcy lawyer.

Assessing Your Case

First things first, you need someone to help you decide whether or not you absolutely must file for bankruptcy since that is typically a last resort. So, if the COVID-19 pandemic left you in a financial rut, you should seek the assistance of a bankruptcy law firm in order to confirm that filing is the right choice for your situation. If the attorney does indeed think that bankruptcy is your only option, they will help ascertain the best way for you to file; typically, people file for bankruptcy chapter seven, eleven, or thirteen bankruptcy. Chapter seven indicates that you would liquidate your personal assets to pay off your debts, while chapter thirteen requires nailing down a retirement plan. It truly depends on your current financial situation and your long-term financial goal. In all cases, it would be wise to review your rights and the various potential resolutions available as you prepare to file. Your case, like everyone else’s, is not cut and dry, and you will need an experienced eye to look at your debt, income, assets, and potential financial objectives to help you draw the most reasonable conclusions.

Submit a Clean Application

Filing for bankruptcy includes a great deal of paperwork and dealing with different bureaucratic matters that you may not be able to handle on your own. You will need to submit a pristine application, which you can only do with the assistance of a specialized lawyer. If your petition is deemed incomplete or replete with even the tiniest of mistakes, the creditors will file a motion indicating failure to proceed with bankruptcy. If you think they will let go of an innocent mistake, think again; improper failing can cost you everything, and waste a great deal of time and money. Some people think it is enough to dig around for information and ask the right questions about how to file when, in actuality, many of these entities are legally prohibited from offering you advice on the bankruptcy process, even if they don’t outright say so. On the other hand, an attorney will be able to handle all the technical aspects of the filing process while making sure you easily avoid any mistakes. 

Importance of Accurate Testimony

Some people might not realize the full extent of liability they are under when filing for bankruptcy. That is why you do need an attorney to make sure that you give an accurate and complete testimony. You sign the paperwork under penalty of perjury, so if anything is a bit off, even if it’s an innocent mistake, you will get in a ton of trouble with the creditors. Since you’re basically swearing that you’re telling the truth, you will want an attorney in your corner to ensure that your testimony is complete and accurate. 

Get the Collectors Off Your Back

Even while you are filing for bankruptcy, creditors will still do all they can to badger you through direct mail, intrusive phone calls, email, and so on. Creditors are actually legally prohibited from doing so after you file your case, however, they typically don’t let up the pressure unless an attorney is involved. The attorney will not only protect you from the harassment, but they can also ask the court to hold the creditor in contempt. 

Understanding the Timeline

Given how stressful filing for bankruptcy can be, having a lawyer by your side can help diffuse the anxiety and confusion surrounding the process. Furthermore, you will definitely need help in understanding how to move the case forward and the timeline you should expect. The attorney will help outline which debts may be eligible for discharge, what the taxes could look like, how this will affect your credit score or ability to find a job later on, and so on. In general, he or she will be able to draw an accurate timeline for you of what to expect and when to expect it, and they will also walk you through the process of figuring out the short term and long term impact of filing for bankruptcy. 

Handle Negotiations

Depending on the type of bankruptcy you end up applying for, your attorney can handle negotiating agreements with your credits on your behalf, thereby allowing you to keep your property and protect it from repossession. He or she will negotiate repayment options on your behalf, safeguard the collateral, and also settle on affordable interest rates as you repay everything. 

Manage Life Post-Bankruptcy

Dealing with things post-bankruptcy will require just as much work in terms of management and damage control. It will take you a while to get on your feet, but the attorney can help make this process move along a lot smoother. For example, if a creditor comes out of the woodwork, demanding payments despite the debts being wiped out by the bankruptcy, the attorney can charge them with a violation. Plus, you will most likely need advice on how to rebuild your credit, which is essentially the basis of all your financial hopes in this country. Many attorneys will be able to offer invaluable advice to help steer you in the proper direction. 

Filing a successful petition for bankruptcy will help grant you a much-needed fresh start to reset your finances and dig your way out of the hole of debt you plunged yourself into. However, a successful filing is only attainable with the help of an experienced attorney, who can shed light on the situation and guide you through the process as smoothly as possible.