Why Using a Lawyer Helps During a Bankruptcy Process

Despite the stigma associated with bankruptcy, it can offer consumers hope for financial relief. However, it is not without its challenges. Personalized attention and advocacy are critical for a successful bankruptcy filing.

An experienced attorney will help determine which type of bankruptcy is appropriate for your situation, file the necessary paperwork and ensure compliance with legal requirements and deadlines. They can also assist with negotiating with creditors and debt collectors.

Experience

A lawyer who specializes in bankruptcy will be able to assess your situation, advise you on the best type of filing (Chapter 7 or Chapter 13), and guide you through the process. They can also help you protect your assets and negotiate with creditors.

They can make sure that your paperwork is accurate, complete and filed within the required deadlines, reducing the risk of rejection by the court or delay in your case due to simple errors. They will also represent you at any required hearings or meetings with creditors or debt collectors.

They will be familiar with the trustee assigned to your case, and can argue your case persuasively without risking your bankruptcy discharge. They will also be able to identify any assets that may be exempt from liquidation and help you protect them.

Knowledge

While it is possible to file for bankruptcy without a lawyer, attorneys have knowledge of the laws and procedures that apply. They can make sure all paperwork is completed correctly, and that your rights are protected throughout the process. They will also make sure you are properly exempting assets and portraying your financial situation accurately.

A good attorney may also be able to help you find a less drastic solution to your debt problem. They will be able to recommend alternatives that are much easier on your budget than bankruptcy.

Lastly, your lawyer will protect you from harassment by creditors and debt collectors during the bankruptcy process. They will communicate with them on your behalf, and take action against violations of the automatic stay.

Saves You Money

Saving money during bankruptcy is possible with the help of an experienced attorney. Trying to file for bankruptcy without an attorney is risky and costly. The complexity of the rules and timelines involved in bankruptcy means even a simple mistake can have disastrous consequences. For example, if you file paperwork incorrectly, the trustee could sell your house or car to pay creditors!

Many people file for bankruptcy because of expensive divorce or medical bills. In addition, loss of a job or other financial hardship often contributes to debt problems. Bankruptcy offers relief from some or all debt obligations and a chance to build a fresh start. But it's important to remember that filing for bankruptcy can ruin your credit and limit your future financial options.

Keeps You From Making Mistakes

When it comes to bankruptcy, any mistake can jeopardize your financial future. Consulting with a bankruptcy attorney simplifies the process, ensures paperwork is correct, advises on the best bankruptcy type, and represents you during court proceedings. This reduces the risk of errors and increases your chances of a successful outcome.

For instance, if you forget to list an asset on your application or miscategorize a debt or an asset, the trustee could accuse you of fraud. An attorney reviews all assets, property, and debts to make sure no details are missed.

It’s also important to avoid certain purchases in the months leading up to your filing. For example, paying off a credit card balance to a friend or family member may seem like the responsible thing to do, but this type of spending can be grounds for a lawsuit from your trustee.

Helps You Keep Your Home

Many people are concerned that bankruptcy will cause them to lose their home. This can be a fear that can be eased by the fact that a good attorney will know what to do to protect your home during a bankruptcy.

Generally, once a bankruptcy is on file creditors cannot call or collect from you. This protection can stop a foreclosure or repossession of property in some cases.

A skilled York PA bankruptcy attorney can also negotiate a settlement or repayment plan with creditors to resolve your debt issues without the need for a full bankruptcy case. This will save you money, stress and allow you to keep more of your assets. This can be done under Chapter 7 or Chapter 13 bankruptcy depending on your situation.