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Research shows that over 14,000 businesses filed for bankruptcy in 2021. While declaring bankruptcy can offer relief from debt obligations, it involves countless legal matters you might struggle to navigate on your own.
Fortunately, hiring a bankruptcy attorney helps you receive legal guidance and eliminates the paperwork involved. Not just this, but working with a lawyer ensures you don’t make mistakes that can affect your rights. Working with an experienced bankruptcy lawyer at Attorney Debt Fighters can help you efficiently deal with your financial issues.
But first, we will discuss what a bankruptcy lawyer is, what services they offer, and why you need to hire one:
A Quick Glance at Bankruptcy Lawyers
Bankruptcy lawyers specialize in providing legal guidance to clients filing for bankruptcy. They’ll help fill out the relevant paperwork, prepare legal documents, and represent you in court.
A bankruptcy attorney must hold a law degree and have a valid license to practice their skills. Typically, the lawyer will advise you about whether to file for bankruptcy, the type, and how the process works.
What Are the Different Types of Bankruptcy?
The US Bankruptcy Code outlines six distinct forms of bankruptcy. However, when filing for a case as an individual, cases fall under two types:
- Chapter 7 Bankruptcy – Otherwise known as Liquidation Bankruptcy, this wipes out debts. It’s ideal for businesses that struggle to make monthly debt payments and involves the sale of your assets for cash.
- Chapter 13 Bankruptcy – Also referred to as a wager earner’s plan, the court approves a solid repayment plan here. Consequently, you can pay off debts over a three to five-year period.
What Can a Bankruptcy Lawyer Do?
An experienced bankruptcy lawyer will provide you peace of mind alongside:
- Initial consultation to discuss the details of your case
- In-depth advice on the different options and the type of bankruptcy to file
- Complete paperwork and guidance on collecting legal documents for declaring bankruptcy
- Representation in court in front of judges
Signs You Need a Bankruptcy Lawyer
Financial distress often occurs gradually, showing multiple signs that your business is deteriorating. To avoid waiting until it’s too late, stay on the lookout for the following symptoms:
- You make the minimum monthly payments despite overdue bills
- You use credit cards to pay for everyday expenses, such as rent, utilities, and groceries
- You’ve maxed out credit cards, and your debt is pilling
- You have to pay overdraft fees per month
- Collection agencies call you multiple times everyday
- Creditors want to sue you for unpaid debts
- You can’t qualify for debt-relief programs
- You don’t feel comfortable dealing with bankruptcy cases yourself
- Divorce, job loss, and medical bills can make your finances go haywire
What to Expect from Your Bankruptcy Lawyer?
While you can choose to represent yourself in court, we recommend against it. Why? The American Bankruptcy Institute reveals that lawyers represented 91.5% of all Chapter 7 cases, leading to a 96.2% success rate!
Contrarily, people who represented themselves only won 66.7% of the time. But before you hire a bankruptcy attorney, you must learn what you should expect from them:
Expect Sound Legal Advice
Expect your bankruptcy attorney to guide you on whether declaring bankruptcy is in your best interest.
Additionally, you should expect competent advice on which type of bankruptcy best matches your needs, what the process will look like, and whether the case involves risks.
Expect a Written Agreement
When hiring a bankruptcy lawyer, ensure they offer a “retainer agreement” or contract that outlines the services they’ll provide.
Besides this, discuss how and how often the attorney will update you about your case.
Expect No Paperwork
Filing for bankruptcy comes with lengthy forms, which means a massive workplace. Fortunately, most bankruptcy attorneys have specialized software that eliminates mundane tasks and helps save time.
Your lawyer will ask you for financial information, including income, expenses, and assets, to start preparing official forms. That way, you can skip filling out forms manually.
Expect Representation in Court
Once you file for bankruptcy, state laws require you to attend a mandatory 341 meeting of creditors. However, depending on the complexity of your case, you might have to go to other hearings.
Hiring a bankruptcy lawyer opens you up to legal advice relevant to upcoming hearings.
Things to Consider When Looking for a Bankruptcy Lawyer
Once you hire a bankruptcy attorney to handle your case, you’ll want to weed out one who’s reputable and experienced. Here are things to consider to spot the right bankruptcy lawyer:
Are They a Specialist?
Lawyers practice law in multiple areas, from personal injury to tax. You wouldn’t want a divorce attorney to handle your case, so look for one specializing in bankruptcy law. A specialized bankruptcy lawyer will be up-to-date with legal developments and practices.
You can easily find one by checking out the American Bar Association’s lists of lawyers or surfing the internet. You can also contact a friend or family member in a similar situation.
Do They Have Adequate Experience?
Before you hand your case over to a bankruptcy lawyer, ask for their years of experience. More importantly, inquire about their success rate.
If the attorney gets offended, it’s a sign to move on to a new one. However, if they show off their track record, you can add them to your list of lawyers to interview.
What Are Their Payment Plans?
Before you hire a bankruptcy attorney, it’s crucial to check their payment plans. For instance, your lawyer might charge an hourly or flat fee.
Many attorneys offer different costs depending on the consumer’s location, case complexity, and experience.
The Bottom Line
Filling for bankruptcy can be intimidating, especially if you try to do it independently. Carefully if you want to hire a bankruptcy lawyer and who you want to work with.
Connecting with our proficient bankruptcy attorney at Attorney Debt Fighters can help you get your finances in shape. Book a free consultation with our team of expert lawyers to find a fresh start in money management.
Besides this, you can find divorce lawyers and debt consolidation and negotiation experts to get the rights you deserve.
Sources
https://www.forbes.com/advisor/debt-relief/bankruptcy-lawyer/
https://www.hinklaw.com/how-to-choose-a-bankruptcy-lawyer/
https://www.debt.org/bankruptcy/do-i-need-a-bankruptcy-attorney/
https://www.bankrate.com/personal-finance/debt/bankruptcy-lawyers/
https://www.nolo.com/legal-encyclopedia/what-should-i-expect-from-my-bankruptcy-lawyer.html