Your battle against debt is half won if you have an efficient lawyer by your side. The last couple of months have been tough for you financially. You have been trying hard to wrestle out of debt. Your current financial status demands that you file for bankruptcy. Can you handle it alone? It is better not to. There are several legal aspects in bankruptcy that can be addressed only by an experienced bankruptcy lawyer. Your attorney can take the entire bankruptcy process to completion and get you out of the debt trap.
How can a bankruptcy attorney help you?
Once you have contacted the attorney, don’t conceal any information related to your debt accounts. Even if there is any detail which may go against you, speak out. Your bankruptcy attorney may be in a position to help you out.
You have to go for credit counseling at least 6 months prior to filing for bankruptcy. It has been made mandatory as per the new bankruptcy law introduced on October 17th 2005.
You have to hand over all relevant papers to him along with the proof that you have undergone a credit counseling session. Give him all the documents related to your debt accounts, assets, monthly expenditure, income etc. After carefully studying your financial situation, your bankruptcy attorney will decide which chapter will help you the most.
Role of attorney in Chapter 7 bankruptcy
The attorney will advise you to file for Chapter 7, if your source of income has been exhausted. He can help you with the Means Test. He will help you to calculate your net income and gross income for the last 6 months. The income that is obtained will be compared to the median income (average) of a household with similar parameters in your city/town. If you are qualifying for Chapter 7, the bankruptcy lawyer coordinates with the trustee. The trustee is usually appointed by a bankruptcy court and its main function is to dispose off your assets to pay for your debts.
Role of attorney in Chapter 13 bankruptcy
Once the Means Test is conducted and if it is found that your income doesn’t qualify for Chapter 7, he asks you to file for Chapter 13. If you are eligible for filing Chapter 13 bankruptcy, the attorney works out a repayment schedule and tries to get the new repayment schedule approved by the Court. Approval from the Court is sought after talking to all your creditors. Once the repayment schedule is accepted, you will have to start making payments. The new repayment plan enables you to wrap up your debts within a span of 3 to 5 years.
Bankruptcy Attorney helps you avoid traps
Since you are filing for bankruptcy, you may not be in a position to think logically. Once the attorney is thorough with your case, he can suggest various loopholes that can be avoided. The bankruptcy lawyer not only assists you in choosing the appropriate chapter in bankruptcy but tries to get you out of debt at the earliest. In the process you save a lot of time and effort.