When to Consult an Attorney During the Bankruptcy Process

People should consult an attorney before the bankruptcy process begins. In fact, deciding to file bankruptcy is the first step in a long, complicated process. For people trying to file bankruptcy alone, risk having their cases dismissed because of improper paperwork or being perceived as attempting to defraud the U.S. Bankruptcy Court. However, an experienced bankruptcy attorney will eliminate those mistakes by providing their guidance and expertise in bankruptcy law. For example, there are several bankruptcy forms to fill out. A bankruptcy attorney will ensure that all these forms, which can include up to 30 to 60 pages of bankruptcy papers, are filed correctly and accurately, according to Pinn Home Loans.

Consult a Lawyer: To Understand What Bankruptcy Is

Personal bankruptcy consists of two options. Chapter 7 bankruptcy is for people without means to repay their creditors. However, under chapter 7 people may be required to turn over personal items that are considered non-exempt, to bankruptcy trustees. The trustees sell these items with the money acquired from the sell going to the creditors. Chapter 7 does protect people against wage garnishments and lawsuits. Chapter 13 bankruptcy gives people a way to repay their creditors over time—typically, in three to five months according to people’s income. Under chapter 13, people can save their property from foreclosure. Thus, a lawyer can tell people which option is best for them.

Consult a Lawyer: To Know What to Expect

Surprises and bankruptcy dismissals are the last things people want when there are seeking financial freedom, but they are some things that could happen if they don’t consult a lawyer. Before filing bankruptcy cases are filed, a bankruptcy lawyer can inform people of what to expect. For instance, a lawyer will advise people to seek credit counseling before bankruptcy cases are filed. Credit counseling is required at least 180 days before filing. If people don’t obtain counseling, their cases can be dismissed. Also, a bankruptcy lawyer will warn people not to run up debts in anticipation of filing bankruptcy. These debts won’t be included in their bankruptcy cases.

Consult a Lawyer: To Understand Creditors’ Options

People who consult a bankruptcy lawyer before filing bankruptcy will understand what creditors may do. For instance, creditors may file a motion to lift or remove the automatic stay provided in both chapter 7 and 13. A bankruptcy court can file the appropriate paperwork to keep the automatic stay in place.

Think Bankruptcy Might Be for You?