Are you confused about which type of bankruptcy is the best for your financial situation? You can make sure the right type of bankruptcy is filed by hiring a lawyer to help, as he or she may be able to help you avoid causing long-term damage to your credit rating. Find out in this article what you should know about filing for bankruptcy with the help of a lawyer.
How Can a Lawyer Assist with Filing for Bankruptcy?
The first thing a lawyer can do for your situation is determine how deep in debt you are. He or she will ask about what you owe to creditors during the initial consultation. If you are deep into debt that is likely to be hard to pay off, the lawyer might recommend that Chapter 7 bankruptcy is filed. Basically, Chapter 7 bankruptcy is the type that will allow you to be forgiven for all or most of your debts. The bad thing about filing for Chapter 7 bankruptcy is that you will have a hard time getting things on credit for a long time, and it can also prevent you from being able to receive financing for homeownership.
If you owe an amount of debts that can be paid off if your finances are managed right, the lawyer is likely to suggest that you file for Chapter 13 bankruptcy. Your credit can actually be rebuilt in a timely manner with Chapter 13 bankruptcy because you will have to pay creditors what they are owed. A bankruptcy judge will give you a limit of up to five years to pay the debts off. Your lawyer will be able to help you come up with a repayment plan that will ease of your financial situation, while also satisfying creditors.
What Does a Bankruptcy Lawyer Charge Clients?
You should expect a Chapter 7 bankruptcy case to cost at least $600 and up for a lawyer to help with filing. If Chapter 13 bankruptcy is ideal for your situation, he or she is estimated to charge $1,200 and up. The overall price will depend on the complexity of your financial situation. You can also be charged by the hour at $100 or more. The lawyer is likely to ask for the fees required for filing a bankruptcy petition with the court, which is estimated at $299 for Chapter 7 and $274 for Chapter 13. Consult with a lawyer (find more information here) about your debt situation and filing for bankruptcy as soon as possible!
Share21 December 2015
Like many people, I once found learning about law very intimidating. My brother went to law school and I remember glancing through a few of his books and wondering if I was actually reading English due to all of the legal jargon in them! However, when I ended up in a sticky legal situation due to accidentally breaking a small law I didn't know existed, I realized that I needed to learn more about the law, so I could make sure to follow it precisely in the future. My brother helped to break down some complicated legal concepts to me, and I have since been studying up online. I want to post what I have learned and continue to learn about law in the future on my new blog, so my knowledge cannot only help myself, but also help others!