If you are planning to file for personal bankruptcy, your current financial situation is probably less than ideal. After all, you would not be considering bankruptcy if you were flush with cash. Consequently, you may think that hiring a bankruptcy attorney is a bad idea since these legal services inevitably come along with legal fees. However, the truth is that no matter how dire your current financial situation may be, you will benefit from choosing to hire a bankruptcy attorney. Below you can learn more about some of the reasons why you should invest in this legal representation despite your current financial distress.
#1: A Bankruptcy Attorney Can Help You Identify Which Type Of Bankruptcy Is Right For You
There are several different types of bankruptcy relief that you can seek through the court. The most popular options are Chapter 7 and Chapter 13 bankruptcy. While all types of bankruptcy relief are designed to help people deal with insurmountable debt, the way in which this goal is accomplished can be quite different. Choosing the right type of bankruptcy relief will play a big role in which debts can be discharged by the court, how much of your debt you are required to pay, and which assets can be seized in order to pay creditors. Working with a bankruptcy attorney will ensure that you are able to choose the right type of bankruptcy relief for your specific situation.
#2: Bankruptcy Attorneys Can Help To Ensure You Keep As Many Of Your Assets As Possible
In addition to the different rules regarding assets associated with each type of personal bankruptcy petition, there are also both state and federal asset protection laws that govern which assets can be shielded from seizure. In most cases, you will have the choice of whether to apply state or federal asset protection laws to your specific case. A bankruptcy attorney can help you to understand the differences between these two legal standards and how each one will impact your case. This knowledge will ultimately ensure that you are able to protect as many of your personal assets as possible under the law.
#3: Your Bankruptcy Attorney Will Help Prevent Your Case From Being Dismissed
If you fail to comply with the court in any way during the duration of your bankruptcy case, this case can be dismissed without you receiving the debt relief you require. To make matters worse, you may be required to wait an extended period of time after your case is dismissed before you are able to file for bankruptcy again. That is why it is so important to ensure you are in compliance at every step of the bankruptcy process and that you do not miss any court-mandated deadlines. A bankruptcy attorney will be able to ensure your case stays on track so that you can get the debt relief you need.